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, the bill allows a credit equal to ten percent of the federal tax credit provided under 26 U.S.C. 23. The Department of Revenue is also granted the authority to adopt rules and regulations to implement this 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. This inclusion signifies a harmonization of provisions related to tax credits in Nebraska, while the original section 77-2715.07 is set to be repealed. The bill aims to support families adopting children by providing financial relief through tax credits.

Statutes affected:
Introduced: 77-2715.07