The proposed bill introduces the Adoption Tax Credit Act, which establishes a refundable income tax credit for taxpayers in Nebraska who are eligible for the federal adoption expenses tax credit. Specifically, for taxable years beginning on or after January 1, 2026, eligible taxpayers can receive a credit equal to ten percent of the federal tax credit allowed under 26 U.S.C. 23. The bill also empowers the Department of Revenue to create rules and regulations to implement the provisions of the Adoption Tax Credit Act.

Additionally, the bill amends section 77-2715.07 of the Revised Statutes Cumulative Supplement, 2024, to include the Adoption Tax Credit Act among the refundable credits available to qualified resident individuals against the income tax imposed by the Nebraska Revenue Act of 1967. The original section 77-2715.07 is set to be repealed, harmonizing the existing tax credit provisions with the new adoption tax credit.

Statutes affected:
Introduced: 77-2715.07