The Opportunity Scholarships Act aims to improve educational access for children in Nebraska by providing tax credits to individuals and businesses that contribute to certified scholarship-granting organizations. The bill defines key terms such as "eligible student," "qualified school," and "scholarship-granting organization," and establishes criteria for certification by the Department of Revenue. Taxpayers making cash contributions can receive nonrefundable tax credits against their income tax liabilities, with a cap on the credit amount based on their contributions, income tax liability, or a specified dollar limit. The act also allows unused credits to be carried forward for up to five years and sets an annual limit of $25 million for tax credits issued from 2025 to 2027.

In addition to the Opportunity Scholarships Act, the bill amends the Nebraska Revenue Act of 1967 to introduce various tax credits, including a nonrefundable credit for partners and shareholders of certain entities, a credit for purchasing a primary residence in blighted areas, and a refundable credit for parents of stillborn children. The act mandates that scholarship-granting organizations allocate at least 90% of their revenue for scholarships and submit annual financial reports. It clarifies that the state will not govern qualified schools and allows the Department of Revenue to create regulations for implementation. The provisions of the act will take effect for taxable years starting on or after January 1, 2025, and it includes a clause ensuring the validity of remaining sections if any part is found unconstitutional.

Statutes affected:
Introduced: 77-2715.07, 77-2717, 77-2734.03