Nevada will participate in a new federal education program that allows taxpayers to receive tax credits for donations that fund school scholarships.
Governor Joe Lombardo announced the state will opt into the Federal Tax Credit Scholarship Program, a provision created under the One Big Beautiful Bill Act passed last summer.
The decision allows Nevada to take part in a nationwide program designed to support K through 12 education scholarships.
“I thank President Trump for delivering a historic federal school choice program that puts families first,” Lombardo said. “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. This program marks a historic milestone for parental freedom and economic opportunity. In Nevada, we have expanded educational freedom through initiatives like open enrollment, increased transportation funding, and higher pay for charter school teachers—giving parents more control over their children’s future. By opting into this program, we’re accelerating that progress, and we’re just getting started.”
The program applies to taxable years beginning after December 31, 2026. Under the plan, individual taxpayers can receive a non-refundable dollar-for-dollar federal income tax credit for cash donations made to approved scholarship-granting organizations, known as SGOs.
The credit is capped at $1,700 per taxpayer each year. Those donated funds are used to provide K through 12 scholarships for students, covering expenses such as private school tuition, tutoring, special education services, and other qualified education costs. Scholarships are generally intended for students from households earning at or below 300% of the area median income.
Nevada’s role is largely administrative. Federal law sets the core rules, while the state is responsible for creating the application process for SGOs, verifying required information, and submitting a list of approved organizations to the U.S. Treasury Department by January 1 each year. Only SGOs on that list can receive donations that qualify for the tax credit. The state said more details will be released once additional federal guidance is issued.
Scholarship-granting organizations must be tax-exempt nonprofit groups under federal law, including educational nonprofits, universities, and religious organizations. SGOs may keep up to 10% of scholarship funds for administrative costs.
For donors, the process works differently from a typical charitable deduction. A $1,700 contribution to a qualified SGO reduces federal income taxes owed by the same amount. If the credit exceeds what a taxpayer owes in a given year, the unused portion can be carried forward for up to five years. Donors do not have to live in Nevada to contribute, as long as the SGO operates in a participating state.
Families seeking scholarships must meet income requirements and have a child eligible to enroll in a public elementary or secondary school. Priority may go to children who previously received a scholarship or who have a sibling already in the program.
The program is scheduled to begin January 1, 2027, with qualifying contributions made during 2027 and credits claimed on that year’s federal tax return.
