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 will allow individuals with federal adjusted gross incomes of $29,000 or less to receive a refundable credit equal to a percentage of the federal credit allowable under section 21 of the Internal Revenue Code. Specifically, the percentage will be 100% for incomes not exceeding $22,000, decreasing by 10% for each additional $1,000 in income. Additionally, the bill introduces a new refundable credit equal to 10% of the federal credit for taxable years prior to January 1, 2025, and 20% for taxable years beginning on or after that date.

The bill also includes provisions that require individuals to have received the federal credit allowed under section 21 or section 32 of the Internal Revenue Code after adding back any carryforward of a net operating loss to qualify for the refundable credits. Furthermore, the original section 77-2715.07 is repealed, indicating a complete overhaul of the existing earned income tax credit structure in Nebraska.

Statutes affected:
Introduced: 77-2715.07