This bill amends section 77-2715.07 of the Revised Statutes Cumulative Supplement, 2024, to increase the earned income tax credit for qualified resident individuals in Nebraska. The changes include a new refundable credit structure that allows for a credit equal to ten percent of the federal credit under section 32 of the Internal Revenue Code for taxable years prior to January 1, 2025, and twenty percent for taxable years beginning on or after that date. Additionally, the bill specifies that these refundable credits will only be available if the individual would have received the federal credit after accounting for any carryforward of a net operating loss.

The bill also repeals the original section 77-2715.07, effectively replacing it with the updated provisions. This legislative change aims to enhance the financial support for low to moderate-income residents by increasing the percentage of the federal earned income tax credit that they can claim on their state taxes, thereby providing greater relief and incentivizing work among eligible individuals.

Statutes affected:
Introduced: 77-2715.07