Adopt the Adoption Tax Credit Act

LB 709 creates a Nebraska income tax credit for residents who pay adoption expenses, directly affecting individuals or families adopting children who qualify for the federal adoption tax credit under 26 U.S.C. § 23. The bill establishes a refundable credit equal to 10% of the federal credit amount claimed in the same tax year, effective for 2026 tax returns. This harmonizes Nebraska tax law by adding adoption credit as a specific line item within existing credit provisions. The credit applies to all eligible Nebraska taxpayers regardless of federal credit limitations, making it refundable (meaning it can reduce tax liability below zero).