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 also clarifies that tax credits under the Child Care Tax Credit Act can be utilized to offset multiple tax liabilities, such as income and franchise taxes. Additionally, it establishes provisions for the recapture of Nebraska affordable housing tax credits if federal low-income housing tax credits are disallowed and sets a cap on the maximum amount of Nebraska credits awarded in any allocation year.

Moreover, the bill introduces a nonrefundable tax credit for taxpayers making qualifying contributions, with the credit amount ranging from one hundred percent to seventy-five percent of the contribution, capped at a maximum of one hundred thousand dollars per taxable year. Taxpayers who have claimed a charitable contribution deduction for the same contribution are ineligible for this credit. The Department of Revenue is also restricted from using verification information from the Department of Health and Human Services for purposes outside the Child Care Tax Credit Act. The bill further allows taxpayers to offset retaliatory taxes without incurring additional taxes due to claiming the credit and amends existing tax regulations to include the Child Care Tax Credit Act alongside other tax credit acts, while repealing certain 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