The proposed bill introduces the Child Tax Credit Act, which establishes a refundable tax credit for taxpayers with qualifying children under the age of six, effective for taxable years beginning on or after January 1, 2026. The credit amount is set at $1,000 per qualifying child, with reductions based on the taxpayer's federal adjusted gross income. The bill also mandates annual inflation adjustments to the credit and income thresholds starting in 2027. Additionally, it requires the Department of Revenue to report annually on the usage of these credits.

Furthermore, the bill amends existing laws to exempt certain tax credit refunds, specifically those from the Child Tax Credit Act and federal or state earned income tax credits, from claims of creditors in bankruptcy and money judgment collections. The original sections of the statutes being amended are repealed, ensuring that the new provisions are integrated into Nebraska's revenue and taxation framework.

Statutes affected:
Introduced: 25-1553, 77-2715.07