Existing law requires financial institutions, mining businesses and other employers to pay an excise tax (the modified business tax) on wages paid by them. (NRS 363A.130, 363B.110) Existing law also requires certain insurers to pay a tax of 3.5 percent upon net direct premiums and net direct considerations written by those insurers (the insurance premium tax). (NRS 680B.027) Existing law establishes a credit against the modified business tax for a taxpayer who makes a donation to a scholarship organization that provides grants on behalf of pupils who are members of a household with a household income of not more than 300 percent of the federally designated level signifying poverty to allow those pupils to attend schools in this State, including private schools, chosen by the parents or legal guardians of those pupils (the Nevada Educational Choice Scholarship Program). (NRS 363A.139, 363B.119, 388D.270) Existing law authorizes the Department of Taxation to approve applications for such tax credits until the total amount of credits authorized for each fiscal year is $6,655,000. (NRS 363A.139, 363B.119) Sections 3 and 4 of this bill increase the amount of tax credits that the Department of Taxation is authorized to approve for donations made to a scholarship organization through the Nevada Educational Choice Scholarship Program from $6,655,000 for each fiscal year to: (1) for Fiscal Year 2025-2026, $30,000,000; and (2) for each succeeding fiscal year, 110 percent of the amount authorized for the immediately preceding fiscal year. Sections 7 and 8 of this bill establish a credit against the insurance premium tax for an insurer who makes a donation to a scholarship organization through the Nevada Educational Choice Scholarship Program to be administered in the same manner as the credit against the modified business tax. Section 1 of this bill makes a conforming change to indicate that this credit is part of the Nevada Educational Choice Scholarship Program. Section 9 of this bill makes a conforming change to make certain provisions governing the insurance premium tax applicable to this credit. Sections 5, 10 and 11 of this bill make conforming changes to make this credit applicable to certain entities who are subject to the insurance premium tax. Section 2 of this bill expands the existing criteria of pupils on whose behalf scholarship organizations must provide grants to include pupils: (1) on whose behalf a grant was awarded for the immediately preceding school year; (2) who are the sibling of a pupil on whose behalf a grant was awarded for the current or immediately preceding school year; (3) who have an individualized education program; (4) who have a parent or legal guardian who is on active duty in the Armed Forces of the United States; and (5) who have a parent or legal guardian who is a peace officer or firefighter. Section 2 also modifies the existing requirement that scholarship organizations provide grants on behalf of pupils who are members of a household that has a household income within a certain percentage of the federally designated level signifying poverty by increasing that percentage from 300 percent of the federally designated level to 400 percent. Section 2 further establishes the order of priority in which a scholarship organization is required to award grants and requires that each grant made by a scholarship organization be not less than $1,000.

Statutes affected:
As Introduced: 388D.250, 388D.270, 363A.139, 363B.119, 679A.160, 680B.025, 695B.320, 695F.090
BDR: 388D.250, 388D.270, 363A.139, 363B.119, 679A.160, 680B.025, 695B.320, 695F.090