Vetoed proposal would prioritize scholarship tax credits for pupils

The Department of Taxation would review scholarship organizations’ applications and allocate available credits by pupil priority. Applications would count pupils who received grants the prior school year, their siblings, and other applicants, in that order. If credits cannot cover every pupil in a category, the Department would divide credits among organizations based on the number of applicants in that category. Taxpayers would have 30 days after notice of approval to donate, or they would lose the credit. Applications would cover the next fiscal year. The Department would decide by July 1 each year.

A scholarship organization would have to spend each tax-credit-backed donation within 24 months or repay the credit tied to the unspent amount. This would apply to donations for which a taxpayer received a tax credit. The organization would repay an amount equal to the part of the donation it did not spend within the deadline. The 24-month period would begin when the Department approved the tax-credit application.

A scholarship organization would have to be a Nevada nonprofit corporation with federal 501(c)(3) tax-exempt status. The requirement would apply to organizations participating in the Nevada Educational Choice Scholarship Program. The organization could not own or run a Nevada school that receives program grant money.