Nevada has taken a definitive step towards broadening educational choice by opting into the federal Tax Credit Scholarship Program, as announced by Governor Joe Lombardo's office last Friday. This program, birthed from the larger bill passed last year known as the One Big Beautiful Bill, offers a unique opportunity for donors to redirect their tax dollars. According to News 3 LV, contributors can now receive a dollar-for-dollar tax credit up to $1,700 for their donations to Scholarship-Granting Organizations, thereby giving a direct credit against their tax liability.
The objective of this federal initiative is to provide families with the freedom to select educational avenues that align closely with their children's needs. "I enrolled Nevada into the Federal Tax Credit Scholarship Program to empower families with the freedom to choose education options that best fit their children’s needs," Lombardo told News 3 LV. These SGOs will then grant scholarships that can be used toward private school tuitions, tutoring, special education services, or other qualified K–12 educational expenses.
As per the report from 8 News Now, individuals will be able to claim this tax credit on their 2027 federal income tax returns for qualified contributions made over the 2027 calendar year. To ensure that the program runs effectively, Nevada will oversee the application process for these SGOs and send an annual roster of approved organizations to the U.S. Treasury Department.
Eligibility for these scholarships requires families to earn no more than 300% of the area median income. Moreover, only organizations listed as approved SGOs by the state will have the privilege of receiving donations that qualify for the federal tax credit. These SGOs can be entities such as educational nonprofits, universities, or religious organizations, and they are permitted by law to hold onto up to 10% of the scholarship funds to cover administrative costs. As "this program marks a historic milestone for parental freedom and economic opportunity," the governor expressed in a statement obtained by 8 News Now.
Further details about Nevada's application process for SGOs are expected in the forthcoming guidance from the U.S. Treasury Department, setting the state on a path to potentially reshape the education landscape for its residents starting from 2027.
