Yes, since the scholarship is taxable on the federal return, it is also taxable on the state return.
Because the scholarship amounts that were received as payment for services, required as a condition of the scholarship, they are taxable income. That's why it is included on your W-2.
But, since your tuition was not paid by tax free scholarship, you can claim the tuition credit, on the federal tax return. If you are a dependent, your parent claims the tuition credit.
References:
https://bhw.hrsa.gov/programs/nurse-corps/scholarship/apply
https://bhw.hrsa.gov/sites/default/files/bureau-health-workforce/funding/nursecorps-sp-guidance.pdf
Pub 970 (pg 6) . Generally, you can't exclude from your gross income the part of any scholarship or fellowship grant that represents payment for teaching, research, or other services required as a condition for receiving the scholarship.
