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LEGISLATURE OF NEBRASKA
ONE HUNDRED NINTH LEGISLATURE
FIRST SESSION
LEGISLATIVE BILL 8
Introduced by Dungan, 26.
Read first time January 09, 2025
Committee:
1 A BILL FOR AN ACT relating to the Sustainable Aviation Fuel Tax Credit
2 Act; to amend sections 77-2715.07, 77-2717, 77-2734.03, and 77-7019,
3 Revised Statutes Cumulative Supplement, 2024; to change the first
4 year the credit is available; to change the credit to a refundable
5 credit; to eliminate the limitations on the number of years the
6 credit can be claimed and the annual amount available for the
7 credit; to harmonize provisions; and to repeal the original
8 sections.
9 Be it enacted by the people of the State of Nebraska,
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1 Section 1. Section 77-2715.07, Revised Statutes Cumulative
2 Supplement, 2024, is amended to read:
3 77-2715.07 (1) There shall be allowed to qualified resident
4 individuals as a nonrefundable credit against the income tax imposed by
5 the Nebraska Revenue Act of 1967:
6 (a) A credit equal to the federal credit allowed under section 22 of
7 the Internal Revenue Code; and
8 (b) A credit for taxes paid to another state as provided in section
9 77-2730.
10 (2) There shall be allowed to qualified resident individuals against
11 the income tax imposed by the Nebraska Revenue Act of 1967:
12 (a) For returns filed reporting federal adjusted gross incomes of
13 greater than twenty-nine thousand dollars, a nonrefundable credit equal
14 to twenty-five percent of the federal credit allowed under section 21 of
15 the Internal Revenue Code of 1986, as amended, except that for taxable
16 years beginning or deemed to begin on or after January 1, 2015, such
17 nonrefundable credit shall be allowed only if the individual would have
18 received the federal credit allowed under section 21 of the code after
19 adding back in any carryforward of a net operating loss that was deducted
20 pursuant to such section in determining eligibility for the federal
21 credit;
22 (b) For returns filed reporting federal adjusted gross income of
23 twenty-nine thousand dollars or less, a refundable credit equal to a
24 percentage of the federal credit allowable under section 21 of the
25 Internal Revenue Code of 1986, as amended, whether or not the federal
26 credit was limited by the federal tax liability. The percentage of the
27 federal credit shall be one hundred percent for incomes not greater than
28 twenty-two thousand dollars, and the percentage shall be reduced by ten
29 percent for each one thousand dollars, or fraction thereof, by which the
30 reported federal adjusted gross income exceeds twenty-two thousand
31 dollars, except that for taxable years beginning or deemed to begin on or
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1 after January 1, 2015, such refundable credit shall be allowed only if
2 the individual would have received the federal credit allowed under
3 section 21 of the code after adding back in any carryforward of a net
4 operating loss that was deducted pursuant to such section in determining
5 eligibility for the federal credit;
6 (c) A refundable credit as provided in section 77-5209.01 for
7 individuals who qualify for an income tax credit as a qualified beginning
8 farmer or livestock producer under the Beginning Farmer Tax Credit Act
9 for all taxable years beginning or deemed to begin on or after January 1,
10 2006, under the Internal Revenue Code of 1986, as amended;
11 (d) A refundable credit for individuals who qualify for an income
12 tax credit under the Angel Investment Tax Credit Act, the Nebraska
13 Advantage Microenterprise Tax Credit Act, the Nebraska Advantage Research
14 and Development Act, the Reverse Osmosis System Tax Credit Act, or the
15 Volunteer Emergency Responders Incentive Act; and
16 (e) A refundable credit equal to ten percent of the federal credit
17 allowed under section 32 of the Internal Revenue Code of 1986, as
18 amended, except that for taxable years beginning or deemed to begin on or
19 after January 1, 2015, such refundable credit shall be allowed only if
20 the individual would have received the federal credit allowed under
21 section 32 of the code after adding back in any carryforward of a net
22 operating loss that was deducted pursuant to such section in determining
23 eligibility for the federal credit.
24 (3) There shall be allowed to all individuals as a nonrefundable
25 credit against the income tax imposed by the Nebraska Revenue Act of
26 1967:
27 (a) A credit for personal exemptions allowed under section
28 77-2716.01;
29 (b) A credit for contributions to programs or projects certified for
30 tax credit status as provided in the Creating High Impact Economic
31 Futures Act. Each partner, each shareholder of an electing subchapter S
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1 corporation, each beneficiary of an estate or trust, or each member of a
2 limited liability company shall report his or her share of the credit in
3 the same manner and proportion as he or she reports the partnership,
4 subchapter S corporation, estate, trust, or limited liability company
5 income;
6 (c) A credit for investment in a biodiesel facility as provided in
7 section 77-27,236;
8 (d) A credit as provided in the New Markets Job Growth Investment
9 Act;
10 (e) A credit as provided in the Nebraska Job Creation and Mainstreet
11 Revitalization Act;
12 (f) A credit to employers as provided in sections 77-27,238 and
13 77-27,240;
14 (g) A credit as provided in the Affordable Housing Tax Credit Act;
15 (h) A credit to grocery store retailers, restaurants, and
16 agricultural producers as provided in section 77-27,241;
17 (i) A credit as provided in the Sustainable Aviation Fuel Tax Credit
18 Act;
19 (i) (j) A credit as provided in the Nebraska Shortline Rail
20 Modernization Act;
21 (j) (k) A credit as provided in the Nebraska Pregnancy Help Act; and
22 (k) (l) A credit as provided in the Caregiver Tax Credit Act.
23 (4) There shall be allowed as a credit against the income tax
24 imposed by the Nebraska Revenue Act of 1967:
25 (a) A credit to all resident estates and trusts for taxes paid to
26 another state as provided in section 77-2730;
27 (b) A credit to all estates and trusts for contributions to programs
28 or projects certified for tax credit status as provided in the Creating
29 High Impact Economic Futures Act; and
30 (c) A refundable credit for individuals who qualify for an income
31 tax credit as an owner of agricultural assets under the Beginning Farmer
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1 Tax Credit Act for all taxable years beginning or deemed to begin on or
2 after January 1, 2009, under the Internal Revenue Code of 1986, as
3 amended. The credit allowed for each partner, shareholder, member, or
4 beneficiary of a partnership, corporation, limited liability company, or
5 estate or trust qualifying for an income tax credit as an owner of
6 agricultural assets under the Beginning Farmer Tax Credit Act shall be
7 equal to the partner's, shareholder's, member's, or beneficiary's portion
8 of the amount of tax credit distributed pursuant to subsection (6) of
9 section 77-5211.
10 (5)(a) For all taxable years beginning on or after January 1, 2007,
11 and before January 1, 2009, under the Internal Revenue Code of 1986, as
12 amended, there shall be allowed to each partner, shareholder, member, or
13 beneficiary of a partnership, subchapter S corporation, limited liability
14 company, or estate or trust a nonrefundable credit against the income tax
15 imposed by the Nebraska Revenue Act of 1967 equal to fifty percent of the
16 partner's, shareholder's, member's, or beneficiary's portion of the
17 amount of franchise tax paid to the state under sections 77-3801 to
18 77-3807 by a financial institution.
19 (b) For all taxable years beginning on or after January 1, 2009,
20 under the Internal Revenue Code of 1986, as amended, there shall be
21 allowed to each partner, shareholder, member, or beneficiary of a
22 partnership, subchapter S corporation, limited liability company, or
23 estate or trust a nonrefundable credit against the income tax imposed by
24 the Nebraska Revenue Act of 1967 equal to the partner's, shareholder's,
25 member's, or beneficiary's portion of the amount of franchise tax paid to
26 the state under sections 77-3801 to 77-3807 by a financial institution.
27 (c) Each partner, shareholder, member, or beneficiary shall report
28 his or her share of the credit in the same manner and proportion as he or
29 she reports the partnership, subchapter S corporation, limited liability
30 company, or estate or trust income. If any partner, shareholder, member,
31 or beneficiary cannot fully utilize the credit for that year, the credit
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1 may not be carried forward or back.
2 (6) There shall be allowed to all individuals nonrefundable credits
3 against the income tax imposed by the Nebraska Revenue Act of 1967 as
4 provided in section 77-3604 and refundable credits against the income tax
5 imposed by the Nebraska Revenue Act of 1967 as provided in section
6 77-3605.
7 (7)(a) For taxable years beginning or deemed to begin on or after
8 January 1, 2020, and before January 1, 2026, under the Internal Revenue
9 Code of 1986, as amended, a nonrefundable credit against the income tax
10 imposed by the Nebraska Revenue Act of 1967 in the amount of five
11 thousand dollars shall be allowed to any individual who purchases a
12 residence during the taxable year if such residence:
13 (i) Is located within an area that has been declared an extremely
14 blighted area under section 18-2101.02;
15 (ii) Is the individual's primary residence; and
16 (iii) Was not purchased from a family member of the individual or a
17 family member of the individual's spouse.
18 (b) The credit provided in this subsection shall be claimed for the
19 taxable year in which the residence is purchased. If the individual
20 cannot fully utilize the credit for such year, the credit may be carried
21 forward to subsequent taxable years until fully utilized.
22 (c) No more than one credit may be claimed under this subsection
23 with respect to a single residence.
24 (d) The credit provided in this subsection shall be subject to
25 recapture by the Department of Revenue if the individual claiming the
26 credit sells or otherwise transfers the residence or quits using the
27 residence as his or her primary residence within five years after the end
28 of the taxable year in which the credit was claimed.
29 (e) For purposes of this subsection, family member means an
30 individual's spouse, child, parent, brother, sister, grandchild, or
31 grandparent, whether by blood, marriage, or adoption.
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1 (8) There shall be allowed to all individuals refundable credits
2 against the income tax imposed by the Nebraska Revenue Act of 1967 as
3 provided in the Cast and Crew Nebraska Act, the Nebraska Biodiesel Tax
4 Credit Act, the Nebraska Higher Blend Tax Credit Act, the Nebraska
5 Property Tax Incentive Act, the Relocation Incentive Act, and the
6 Renewable Chemical Production Tax Credit Act, and the Sustainable
7 Aviation Fuel Tax Credit Act.
8 (9)(a) For taxable years beginning or deemed to begin on or after
9 January 1, 2022, under the Internal Revenue Code of 1986, as amended, a
10 refundable credit against the income tax imposed by the Nebraska Revenue
11 Act of 1967 shall be allowed to the parent of a stillborn child if:
12 (i) A fetal death certificate is filed pursuant to subsection (1) of
13 section 71-606 for such child;
14 (ii) Such child had advanced to at least the twentieth week of
15 gestation; and
16 (iii) Such child would have been a dependent of the individual
17 claiming the credit.
18 (b) The amount of the credit shall be two thousand dollars.
19 (c) The credit shall be allowed for the taxable year in which the
20 stillbirth occurred.
21 (10) There shall be allowed to all individuals refundable credits
22 against the income tax imposed by the Nebraska Revenue Act of 1967 as
23 provided in section 77-7203 and nonrefundable credits against the income
24 tax imposed by the Nebraska Revenue Act of 1967 as provided in section
25 77-7204.
26 (11) There shall be allowed to all individuals refundable credits
27 against the income tax imposed by the Nebraska Revenue Act of 1967 as
28 provided in section 77-3157 and nonrefundable credits against the income
29 tax imposed by the Nebraska Revenue Act of 1967 as provided in sections
30 77-3156, 77-3158, and 77-3159.
31 Sec. 2. Section 77-2717, Revised Statutes Cumulative Supplement,
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1 2024, is amended to read:
2 77-2717 (1)(a)(i) For taxable years beginning or deemed to begin
3 before January 1, 2014, the tax imposed on all resident estates and
4 trusts shall be a percentage of the federal taxable income of such
5 estates and trusts as modified in section 77-2716, plus a percentage of
6 the federal alternative minimum tax and the federal tax on premature or
7 lump-sum distributions from qualified retirement plans. The additional
8 taxes shall be recomputed by (A) substituting Nebraska taxable income for
9 federal taxable income, (B) calculating what the federal alternative
10 minimum tax would be on Nebraska taxable income and adjusting such
11 calculations for any items which are reflected differently in the
12 determination of federal taxable income, and (C) applying Nebraska rates
13 to the result. The federal credit for prior year minimum tax, after the
14 recomputations required by the Nebraska Revenue Act of 1967, and the
15 credits provided in the Nebraska Advantage Microenterprise Tax Credit Act
16 and the Nebraska Advantage Research and Development Act shall be allowed
17 as a reduction in the income tax due. A refundable income tax credit
18 shall be allowed for all resident estates and trusts under the Angel
19 Investment Tax Credit Act, the Nebraska Advantage Microenterprise Tax
20 Credit Act, and the Nebraska Advantage Research and Development Act. A
21 nonrefundable income tax credit shall be allowed for all resident estates
22 and trusts as provided in the New Markets Job Growth Investment Act.
23 (ii) For taxable years beginning or deemed to begin on or after
24 January 1, 2014, the tax imposed on all resident estates and trusts shall
25 be a percentage of the federal taxable income of such estates and trusts
26 as modified in section 77-2716, plus a percentage of the federal tax on
27 premature or lump-sum distributions from qualified retirement plans. The
28 additional taxes shall be recomputed by substituting Nebraska taxable
29 income for federal taxable income and applying Nebraska rates to the
30 result. The credits provided in the Nebraska Advantage Microenterprise
31 Tax Credit Act and the Nebraska Advantage Research and Development Act
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