The proposed bill introduces the Property Tax Circuit Breaker Act, which aims to provide financial relief to qualifying taxpayers in Nebraska by allowing them to receive a refundable income tax credit against property taxes or rent paid on their principal residence. The bill defines key terms such as "qualifying taxpayer," "senior taxpayer," and "threshold amount," which is set at five percent of the taxpayer's federal adjusted gross income. The credit is available for taxable years beginning on or after January 1, 2026, and is calculated by subtracting the threshold amount from the total property taxes or rent paid, with the resulting amount multiplied by fifty percent. The maximum credit is capped at four thousand dollars, or five thousand dollars for senior taxpayers.

Additionally, the bill outlines the application process for the credit, requiring qualifying taxpayers to submit specific information to the Department of Revenue. The department is tasked with approving applications and certifying the credit amount within thirty days. The bill also stipulates that only one tax credit per residence may be claimed in any year, and the credit cannot exceed the amount of property taxes owed. The original section of the law, 77-2715.07, is repealed to harmonize the new provisions with existing tax regulations.

Statutes affected:
Introduced: 77-2715.07