Nevada Opportunity Scholarship Tax Credit: Business Gifts and the $1,700 Federal Credit

The Nevada credit in brief

Nevada's Opportunity Scholarships are funded by businesses. Under the Nevada Educational Choice Scholarship Program, an employer that owes the Modified Business Tax (MBT) can give money to an approved scholarship organization. In return it gets a credit against that tax equal to the amount the Department of Taxation approves, up to the full gift.

Key rules from NRS 363B.119:

• Who: any taxpayer required to pay the Modified Business Tax. A matching credit for financial institutions shares the same cap.
• Value: up to 100% of the donation, as approved.
• Statewide cap: $6,655,000 in approved credits per fiscal year, which runs July 1 through June 30.
• Carryforward: up to five years after the end of the calendar year of the gift.

Who can claim it, and who can't

Only businesses that pay the MBT can claim the Nevada credit. That's the main difference from states like Montana or Kansas. Nevada has no personal income tax, so individual donors get no state credit at all.

From January 1, 2027, that changes for individuals in a different way. The federal credit gives them a reason to give that Nevada never could.

Amounts and caps

The cap has moved over time. The Nevada Independent reported that the program started in 2015 at $5 million. One-time money pushed it as high as $26 million in 2017-18. It fell from $11.4 million to about $6.65 million in 2023, when one-time funding ran out. Governor Lombardo has proposed raising it more than once, and the Legislature has not agreed.

The Nevada Independent reported that the program served about 1,300 students in 2024-25. Scholarships are for students from households at or below 300% of the federal poverty level.

Preapproval and deadlines

Nevada requires approval before you give:

1. Your business tells the scholarship organization it intends to give and wants the credit.
2. The organization applies to the Department of Taxation, which approves or denies within 20 days and states the credit amount.
3. You must donate within 30 days of being told about the approval, or you forfeit the credit.
4. The department processes applications in the order received, so applying early in the fiscal year, from July 1, matters most.

Forfeited amounts go back into the pool for others.

Stacking with the federal $1,700 credit

Governor Lombardo opted Nevada in to the federal scholarship tax credit on January 23, 2026, and Nevada is on the IRS list of states with 2027 advance elections. The federal scholarship tax credit guide explains the full rules. For Nevada donors, it splits cleanly:

• Businesses keep using the MBT credit. Under Treasury's proposed rules, gifts from businesses, including partnerships and S corporations, are not qualified federal contributions, so they never earn the federal credit.
• Individuals can give cash in their own name to an SGO on Nevada's federal list and claim up to $1,700 each, or $3,400 for a married couple who each give. Individuals get no Nevada credit, so there is nothing to subtract.

Sole proprietors are a gray area: the proposed rules subtract any state credit claimed on your own qualified gift. If your business's MBT credit and your personal federal gift could overlap, get advice first. Nevada must file its federal SGO list by February 15, 2027. Watch the states opted-in tracker.

How to give, step by step

For businesses (state credit):

1. Choose an approved scholarship organization, such as the AAA Scholarship Foundation, one of the program's administrators.
2. Tell it the amount and that you want the credit. It files with the Department of Taxation.
3. Donate within 30 days of approval.
4. Apply the credit on your MBT returns and track any carryforward.

For individuals (federal credit, from 2027):

1. Find an SGO on Nevada's federal list once it's published.
2. Give cash and designate it as a qualified contribution.
3. Keep the unique donor number the SGO sends by January 31.
4. Claim it on Form 8525 with your 2027 return. See how to claim the federal scholarship tax credit.

Companies that give in several states can compare programs in business tax credit scholarships. Families can read Nevada scholarships for families.

Choosing a scholarship organization

Ask how quickly it files approval requests after July 1. Also ask about typical award size against tuition: reported awards averaged roughly $4,000 to $6,000 in 2023, against average private tuition near $12,000. And ask whether it will run a federal SGO account in 2027.

Our checklist for choosing a scholarship fund covers the rest. When you're ready, pledge on Edulist. You give directly to the organization; Edulist never takes donations.

This page is general information as of October 2026, not tax advice. The federal rules are proposed, not final. Ask your tax professional.