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," and establishes eligibility criteria for the credit, which is available to individuals who own or rent their principal residence and whose property taxes or rent exceed a specified threshold based on their federal adjusted gross income. The credit amount is calculated by subtracting the threshold from the total property taxes or rent paid and multiplying the result by fifty percent, with a maximum credit of $4,000 for general qualifying taxpayers and $5,000 for senior taxpayers.

Additionally, the bill outlines the application process for the credit, requiring qualifying taxpayers to submit relevant information to the Department of Revenue, which must approve applications within thirty days. The legislation 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 bill includes provisions for the Department of Revenue to adopt rules and regulations to implement the act and repeals the original section of the law that it amends.

Statutes affected:
Introduced: 77-2715.07