This legislative bill amends various sections of the Nebraska Revised Statutes to enhance the Affordable Housing Tax Credit Act and the Child Care Tax Credit Act. It introduces new definitions, including "pass-through entity," which covers partnerships, limited liability companies, and S corporations, allowing for greater flexibility in the allocation, transfer, sale, and assignment of tax credits among partners or shareholders. The bill aligns Nebraska's affordable housing tax credits with federal low-income housing tax credits, establishes a cap on the total credits awarded annually, and clarifies that unused tax credits can be carried forward. These changes will take effect for taxable years beginning on or after January 1, 2024.

Additionally, the bill creates a nonrefundable tax credit for taxpayers making qualifying contributions, with the credit amount set at either 100% or 75% of the contribution, capped at $100,000 per taxable year. Full credit eligibility is contingent upon contributions made to eligible programs in opportunity zones or those with children enrolled in the child care subsidy program. Taxpayers claiming a charitable contribution deduction for the same contribution are excluded from this credit. The bill also allows taxpayers to offset retaliatory taxes with the credit and incorporates the Child Care Tax Credit Act into the tax credit programs available to insurance companies, while repealing several sections of the Revised Statutes to streamline the legal framework.

Statutes affected:
Introduced: 77-908, 77-2502, 77-2503, 77-2506, 77-2508, 77-3806, 77-7202, 77-7204, 81-523
Final Reading: 77-908, 77-2502, 77-2503, 77-2506, 77-2508, 77-3806, 77-7202, 77-7204, 81-523
Slip Law: 77-908, 77-2502, 77-2503, 77-2506, 77-2508, 77-3806, 77-7202, 77-7204, 81-523