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 act defines key terms such as "qualifying taxpayer," "senior taxpayer," and "threshold amount," with the threshold set at five percent of the taxpayer's federal adjusted gross income. Eligible taxpayers can claim a credit if their property taxes or rent exceed this threshold, with the credit amount calculated as fifty percent of the excess, capped at $4,000 for general taxpayers and $5,000 for senior taxpayers.

Additionally, the bill outlines the application process for the credit, requiring taxpayers to submit relevant information to the Department of Revenue, which must approve applications within thirty days. The act also stipulates that only one credit can be claimed per residence and that the credit cannot exceed the amount of property taxes owed. The bill includes provisions for the Department of Revenue to adopt regulations to implement the act and repeals the original section of the law that it amends.

Statutes affected:
Introduced: 77-2715.07