The Opportunity Scholarships Act aims to improve educational access for children in Nebraska by offering tax credits to individuals and organizations that contribute to scholarship-granting organizations. The bill defines key terms such as "eligible student," "qualified school," and "scholarship-granting organization," and sets criteria for students to qualify for scholarships. It establishes a nonrefundable tax credit structure for various taxpayers, capped at the lesser of total contributions, fifty percent of the taxpayer's income tax liability, or a specified dollar amount. Taxpayers can carry forward unused credits for up to five years, and the total amount of tax credits is limited to $25 million for the years 2025 to 2027.

Additionally, the bill mandates that scholarship-granting organizations allocate at least 90% of their revenue for scholarships and limits administrative costs to 10%. It requires these organizations to submit annual financial reports and clarifies that the state will not govern qualified schools. The legislation also introduces new tax credits under the Opportunity Scholarships Act to the existing list of credits available to individuals, while amending the Nebraska Revenue Act of 1967 to include various other tax credits, such as those for purchasing homes in blighted areas and for parents of stillborn children. The act will take effect for taxable years starting on or after January 1, 2025, and 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