Nevada Joins Federal Education Program Offering Tax Credits for K–12 Scholarships

Nevada has formally opted into a new federal initiative aimed at expanding access to K–12 education options through a tax credit–based scholarship program.

Governor Joe Lombardo’s office announced Friday that the state will participate in the Federal Tax Credit Scholarship Program, a provision created under a federal reconciliation package passed last year. The program allows individuals to receive a dollar-for-dollar federal tax credit of up to $1,700 for donations made to approved scholarship-granting organizations, or SGOs. Unlike traditional charitable deductions, the credit directly reduces a donor’s tax liability.

Funds raised by participating SGOs will be distributed as scholarships to eligible students and families. The scholarships may be used for a range of qualifying education-related expenses, including private school tuition, tutoring services, and specialized educational support such as services for students with disabilities.

Under the program, Nevada is responsible for establishing an application and approval process for SGOs and submitting an annual list of qualified organizations to the U.S. Department of the Treasury. Only organizations approved by the state will be permitted to receive contributions eligible for the federal tax credit.

Eligibility for student scholarships will be limited to families meeting specific criteria, including household income at or below 300 percent of the area median income and enrollment eligibility for public elementary or secondary education.

State officials say participation in the program is intended to provide families with additional educational options while leveraging private donations rather than direct state funding. Any implementation details, including oversight and reporting requirements for SGOs, will be developed at the state level as the program moves forward.

The announcement marks a significant policy step for Nevada, as it joins other states choosing to participate in the federally supported school choice framework.

Source: KSNV News 3