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. Key updates include the introduction of the term "pass-through entity," which refers to partnerships, limited liability companies, and S corporations, allowing for greater flexibility in the allocation, transfer, sale, and assignment of tax credits among these entities. The bill also clarifies that tax credits under the Child Care Tax Credit Act can be applied to offset multiple tax liabilities, including income and franchise taxes. Additionally, it modifies tax provisions for insurance companies and financial institutions, ensuring they can benefit from both tax credit acts, and establishes a cap on the total amount of tax credits awarded annually.

Moreover, the bill introduces 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. The bill also restricts the Department of Revenue from using verification information from the Department of Health and Human Services for purposes outside the Child Care Tax Credit Act. Additional provisions allow taxpayers to offset retaliatory taxes with the credit, and the bill incorporates the Child Care Tax Credit Act into the list of tax credits available to insurance companies, while also repealing several outdated sections of the Revised Statutes to streamline the legal framework.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