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AB 214

Revises provisions governing Nevada Educational Choice Scholarship Program. (BDR 34-130)

2025 Regular Session Introduced by Greg Hafen

Expands Nevada Educational Choice Scholarship Program to broaden eligibility and raise tax-credit caps, enabling more families to receive scholarships and increasing donor incentiv

(Pursuant to Joint Standing Rule No. 14.3.1, no further action allowed.)
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Bill Summary · AB 214

AB 214 — Nevada Educational Choice Scholarship Program (BDR 34-130) — Summary

Status
- Introduced: January 8, 2025 (prefiled February 3, 2025).
- Assembly passed: March 20, 2025 (Ayes 53 / Noes 17); sent to Senate and referred to committee.
- Final status: April 12, 2025 — Pursuant to Joint Standing Rule No. 14.3.1, no further action allowed (bill stalled/held in the Senate).

Note: a floor-document header includes boilerplate language referencing California; the bill text and provisions apply to Nevada law (Nevada Revised Statutes cited).

Purpose and intent
- Revise and expand the Nevada Educational Choice Scholarship Program (a program that funds grants — via scholarship organizations — to help eligible pupils attend schools chosen by their parents, including private schools).
- Increase authorized tax-credit capacity to boost donations to scholarship organizations and broaden eligible pupil categories and grant rules.

Key provisions and changes
1. Expanded pupil eligibility and priorities
- Increases household income threshold from 300% to 400% of the federal poverty level for pupils eligible for scholarships.
- Adds specific pupil categories eligible for grants: (a) pupils who received a grant in the immediately preceding school year; (b) siblings of current/previous-year recipients; (c) pupils with an individualized education program (IEP); (d) pupils whose parent/guardian is on active duty in the U.S. Armed Forces; and (e) pupils whose parent/guardian is a peace officer or firefighter.
- Establishes an order of priority for awarding grants (subsection referenced as set forth in subsection 7).

  1. Grant amounts and administration

    • Requires each scholarship grant be at least $1,000 per pupil.
    • Caps the maximum grant amount (previous baseline $7,755 for FY 2015–16) and requires annual CPI (All Items) adjustments on July 1.
    • Grants must be paid directly to the school chosen by the parent/guardian.
    • Scholarship organizations must be 501(c)(3) entities, not operate schools, accept donations, and limit administrative expenses to no more than 5% of funds received.
    • Schools receiving grant-paid pupils must maintain academic progress records.

  2. Tax credits and fiscal changes

    • Increases the Department of Taxation’s authority to approve credits for donations to scholarship organizations:
      • Raises the cap from $6,655,000 per fiscal year to $30,000,000 for FY 2025–2026.
      • For each succeeding fiscal year, authorization equals 110% of the prior year’s authorized amount.
    • Creates a parallel tax credit for insurers (against Nevada’s insurance premium tax) for donations to scholarship organizations, administered like the existing modified business tax credit.
    • Conforming statutory changes to apply rules to entities subject to the insurance premium tax and to cite the program collectively.

Who is affected
- Pupils and families: expanded eligibility potentially increases access for lower- and middle-income families (up to 400% FPL) and priority groups (IEP, military, first responders, prior recipients, siblings).
- Scholarship organizations and private schools: operational and reporting requirements; potential increase in donation flows.
- Taxpayers: businesses paying the modified business tax and insurers may use expanded tax credits for donations, reducing state tax liabilities.
- State agencies: Department of Taxation (approvals) and Department of Education (CPI adjustments, notifications, oversight tasks).

Potential fiscal impact
- The bill notes an effect on the State (increased authorization for tax credits likely reduces general fund tax receipts); local governments unaffected. Exact revenue impacts would depend on utilization of the expanded credit caps and insurer participation.

Compiled from official sources — confirm details with the bill’s official record.

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