Budget & Taxes (Tax Credits)

LB 107 creates a new refundable income tax credit for Nebraska renters with lower incomes. It directly affects renters earning $29,000 or less annually, providing a credit equal to 100% of a federal tax credit for those earning under $22,000, with the percentage decreasing by 10% for each $1,000 over $22,000. The credit is refundable, meaning eligible renters would receive the full credit amount even if it exceeds their state tax liability. The bill also modifies existing property tax credit provisions, though specific changes to those are not detailed in the provided text.

Nebraska's LB 157 creates a state-level Child Tax Credit, providing eligible parents with a $1,000 refundable credit per qualifying child under age 6. To qualify, parents must claim the child on their federal tax return, have the child's SSN/ITIN, and meet income limits (e.g., married couples filing jointly lose the full credit above $110,000 federal AGI). The credit is exempt from creditor claims, meaning refunds cannot be seized to pay debts. This policy directly affects Nebraska families with young children who qualify under the federal definition, effective for 2026 tax years.

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).