Change the earned income tax credit

This bill proposes changes to Nebraska's earned income tax credit, which directly affects state residents who file income tax returns. The legislation would allow qualified residents to claim a nonrefundable credit equal to the federal earned income tax credit, while also creating a separate refundable credit for those with lower federal adjusted gross incomes. A key provision adjusts the refundable credit percentage based on income levels, offering 100% of the federal credit for incomes up to $22,000 and reducing it by 10% for each additional $1,000 of income up to a $29,000 cap. Additionally, the bill includes specific conditions requiring individuals to have received the federal credit without the benefit of net operating loss carryforwards to qualify for these state credits.