The proposed bill introduces the Adoption Tax Credit Act, which allows eligible taxpayers to claim a refundable income tax credit in Nebraska starting from taxable years beginning on or after January 1, 2026. This credit is set at ten percent of the federal adoption expenses tax credit as outlined in 26 U.S.C. 23. The bill also empowers the Department of Revenue to establish rules and regulations necessary for the implementation 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. The original section is repealed, streamlining the tax credit provisions and harmonizing them with the new adoption credit. This legislative change aims to provide financial support to families who adopt children, thereby promoting adoption within the state.

Statutes affected:
Introduced: 77-2715.07