LB606 LB606
2023 2023
LEGISLATURE OF NEBRASKA
ONE HUNDRED EIGHTH LEGISLATURE
FIRST SESSION
LEGISLATIVE BILL 606
Introduced by Albrecht, 17.
Read first time January 17, 2023
Committee: Revenue
1 A BILL FOR AN ACT relating to revenue and taxation; to amend sections
2 77-2715.07, 77-2717, and 77-2734.03, Revised Statutes Cumulative
3 Supplement, 2022; to adopt the Nebraska Pregnancy Help Act; to
4 provide for tax credits; to harmonize provisions; to provide an
5 operative date; and to repeal the original sections.
6 Be it enacted by the people of the State of Nebraska,
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1 Section 1. Sections 1 to 10 of this act shall be known and may be
2 cited as the Nebraska Pregnancy Help Act.
3 Sec. 2. The Legislature finds and declares that:
4 (1) Pregnancy help organizations in the State of Nebraska and
5 nationwide provide under-supported pregnant women with services, free of
6 charge, that are crucial for their physical, emotional, and familial
7 wellbeing, including pregnancy testing, pregnancy and prenatal care
8 education, counseling, food, clothing, housing, transportation, parenting
9 and life skills classes, child care, licensed medical care, and referrals
10 to additional community services and material help;
11 (2) Pregnancy help organizations also provide personal relationships
12 and a strong local support network for such women and their families that
13 cannot be replicated by even the best and most effective government
14 programs; and
15 (3) It shall be the policy of the State of Nebraska, through the
16 creation of the Nebraska Pregnancy Help Act, to encourage and celebrate
17 pregnancy help organizations in this state and to incentivize private
18 donations for the furtherance of their good work through the creation of
19 a tax credit.
20 Sec. 3. For purposes of the Nebraska Pregnancy Help Act:
21 (1) Department means the Department of Revenue; and
22 (2) Eligible charitable organization means an organization that:
23 (a) Is exempt from federal income taxation under section 501(c)(3)
24 of the Internal Revenue Code of 1986, as amended;
25 (b) Does not receive more than seventy-five percent of its total
26 annual revenue from federal, state, or local governmental grants or
27 sources, either directly or as a contractor;
28 (c) Is a pregnancy help organization that:
29 (i) Regularly answers a dedicated telephone number for clients;
30 (ii) Maintains its physical office, clinic, or maternity home in the
31 State of Nebraska;
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1 (iii) Offers services at no cost to the client for the express
2 purposes of providing assistance to women in order to carry their
3 pregnancies to term, encourage and enable parenting or adoption, prevent
4 abortion, and promote healthy childbirths; and
5 (iv) Utilizes licensed medical professionals for any medical
6 services offered;
7 (d) Does not provide, pay for, provide coverage of, refer for,
8 recommend, or promote abortions and does not financially support any
9 entity that provides, pays for, provides coverage of, refers for,
10 recommends, or promotes abortions, including nonsurgical abortions; and
11 (e) Is approved by the department pursuant to section 4 of this act.
12 Sec. 4. (1) An organization seeking to become an eligible
13 charitable organization shall provide the department with a written
14 certification that it meets all criteria to be considered an eligible
15 charitable organization. The certification must be signed by an officer
16 of the organization under penalty of perjury. The certification shall
17 include the following:
18 (a) Verification of the organization's status under section 501(c)
19 (3) of the Internal Revenue Code of 1986, as amended;
20 (b) A statement that the organization does not receive more than
21 seventy-five percent of its total annual revenue from federal, state, or
22 local governmental grants or sources, either directly or as a contractor;
23 (c) A statement that the organization maintains its physical office,
24 clinic, or maternity home in the State of Nebraska; and
25 (d) A statement that the organization does not provide, pay for,
26 provide coverage of, refer for, recommend, or promote abortions and does
27 not financially support any entity that provides, pays for, provides
28 coverage of, refers for, recommends, or promotes abortions, including
29 nonsurgical abortions.
30 (2) The department shall review each written certification and
31 determine whether the organization meets all of the criteria to be
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1 considered an eligible charitable organization and shall notify the
2 organization of its determination. Any organization whose certification
3 is approved under this section shall be considered an eligible charitable
4 organization.
5 (3) An organization shall notify the department within sixty days of
6 any changes that may affect its status as an eligible charitable
7 organization.
8 (4) The department may periodically request recertification from an
9 organization that was previously approved as an eligible charitable
10 organization under this section.
11 (5) The department shall compile and make available to the public a
12 list of eligible charitable organizations that have been approved under
13 this section.
14 Sec. 5. (1) An individual taxpayer who makes one or more cash
15 contributions to one or more eligible charitable organizations during a
16 tax year shall be eligible for a credit against the income tax due under
17 the Nebraska Revenue Act of 1967. Except as otherwise provided in the
18 Nebraska Pregnancy Help Act, the amount of the credit shall be equal to
19 the lesser of (a) the total amount of such contributions made during the
20 tax year or (b) fifty percent of the income tax liability of such
21 taxpayer for the tax year. A taxpayer may only claim a credit pursuant to
22 this section for the portion of the contribution that was not claimed as
23 a charitable contribution under the Internal Revenue Code of 1986, as
24 amended.
25 (2) Taxpayers who are married but file separate returns for a tax
26 year in which they could have filed a joint return may each claim only
27 one-half of the tax credit that would otherwise have been allowed for a
28 joint return.
29 (3) The tax credit allowed under this section shall be a
30 nonrefundable credit. Any amount of the credit that is unused may be
31 carried forward and applied against the taxpayer's income tax liability
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1 for the next five years immediately following the tax year in which the
2 credit is first allowed. The tax credit cannot be carried back.
3 (4) The tax credit allowed under this section is subject to section
4 9 of this act.
5 Sec. 6. (1) Any partnership, limited liability company, or
6 corporation having an election in effect under subchapter S of the
7 Internal Revenue Code of 1986, as amended, that is carrying on any trade
8 or business for which deductions would be allowed under section 162 of
9 the Internal Revenue Code of 1986, as amended, or is carrying on any
10 rental activity, and that makes one or more cash contributions to one or
11 more eligible charitable organizations during a tax year shall be
12 eligible for a credit against the income tax due under the Nebraska
13 Revenue Act of 1967. Except as otherwise provided in the Nebraska
14 Pregnancy Help Act, the amount of the credit shall be equal to the lesser
15 of (a) the total amount of such contributions made during the tax year or
16 (b) fifty percent of the income tax liability of such taxpayer for the
17 tax year. A taxpayer may only claim a credit pursuant to this section for
18 the portion of the contribution that was not claimed as a charitable
19 contribution under the Internal Revenue Code of 1986, as amended. The
20 credit shall be attributed to each partner, member, or shareholder in the
21 same proportion used to report the partnership's, limited liability
22 company's, or subchapter S corporation's income or loss for income tax
23 purposes.
24 (2) The tax credit allowed under this section shall be a
25 nonrefundable credit. Any amount of the tax credit that is unused may be
26 carried forward and applied against the taxpayer's income tax liability
27 for the next five years immediately following the tax year in which the
28 credit is first allowed. The tax credit cannot be carried back.
29 (3) The tax credit allowed under this section is subject to section
30 9 of this act.
31 Sec. 7. (1) An estate or trust that makes one or more cash
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1 contributions to one or more eligible charitable organizations during a
2 tax year shall be eligible for a credit against the income tax due under
3 the Nebraska Revenue Act of 1967. Except as otherwise provided in the
4 Nebraska Pregnancy Help Act, the amount of the credit shall be equal to
5 the lesser of (a) the total amount of such contributions made during the
6 tax year or (b) fifty percent of the income tax liability of such
7 taxpayer for the tax year. A taxpayer may only claim a credit pursuant to
8 this section for the portion of the contribution that was not claimed as
9 a charitable contribution under the Internal Revenue Code of 1986, as
10 amended. Any credit not used by the estate or trust may be attributed to
11 each beneficiary of the estate or trust in the same proportion used to
12 report the beneficiary's income from the estate or trust for income tax
13 purposes.
14 (2) The tax credit allowed under this section shall be a
15 nonrefundable credit. Any amount of the tax credit that is unused may be
16 carried forward and applied against the taxpayer's income tax liability
17 for the next five years immediately following the tax year in which the
18 credit is first allowed. The tax credit cannot be carried back.
19 (3) The tax credit allowed under this section is subject to section
20 9 of this act.
21 Sec. 8. (1) A corporate taxpayer as defined in section 77-2734.04
22 that makes one or more cash contributions to one or more eligible
23 charitable organizations during a tax year shall be eligible for a credit
24 against the income tax due under the Nebraska Revenue Act of 1967. Except
25 as otherwise provided in the Nebraska Pregnancy Help Act, the amount of
26 the credit shall be equal to the lesser of (a) the total amount of such
27 contributions made during the tax year or (b) fifty percent of the income
28 tax liability of such taxpayer for the tax year. A taxpayer may only
29 claim a credit pursuant to this section for the portion of the
30 contribution that was not claimed as a charitable contribution under the
31 Internal Revenue Code of 1986, as amended.
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1 (2) The tax credit allowed under this section shall be a
2 nonrefundable credit. Any amount of the tax credit that is unused may be
3 carried forward and applied against the taxpayer's income tax liability
4 for the next five years immediately following the tax year in which the
5 credit is first allowed. The tax credit cannot be carried back.
6 (3) The tax credit allowed under this section is subject to section
7 9 of this act.
8 Sec. 9. (1) Prior to making a contribution to an eligible
9 charitable organization, any taxpayer desiring to claim a tax credit
10 under the Nebraska Pregnancy Help Act shall notify the eligible
11 charitable organization of the taxpayer's intent to make a contribution
12 and the amount to be claimed as a tax credit. Upon receiving each such
13 notification, the eligible charitable organization shall notify the
14 department of the intended tax credit amount. If the department
15 determines that the intended tax credit amount in the notification would
16 exceed the limit specified in subsection (3) of this section, the
17 department shall notify the eligible charitable organization of its
18 determination within thirty days after receipt of the notification. The
19 eligible charitable organization shall then promptly notify the taxpayer
20 of the department's determination that the intended tax credit amount in
21 the notification is not available. If an amount less than the amount
22 indicated in the notification is available for a tax credit, the
23 department shall notify the eligible charitable organization of the
24 available amount and the eligible charitable organization shall notify
25 the taxpayer of the available amount within three business days.
26 (2) In order to be allowed a tax credit as provided by the act, the
27 taxpayer shall make its contribution between thirty-one and sixty days
28 after notifying the eligible charitable organization of the taxpayer's
29 intent to make a contribution. If the eligible charitable organization
30 does not receive the contribution within the required time period, it
31 shall notify the department of such fact and the department shall no
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1 longer include such amount when calculating whether the limit prescribed
2 in subsection (3) of this section has been exceeded. If the eligible
3 charitable organization receives the contribution within the required
4 time period, it shall provide the taxpayer with a receipt for the
5 contribution. The receipt shall show the name and address of the eligible
6 charitable organization, the name, address, and, if available, tax
7 identification number of the taxpayer making the contribution, the amount
8 of the contribution, and the date the contribution was received.
9 (3) The department shall consider notifications regarding intended
10 tax credit amounts in the order in which they are received to ascertain
11 whether the intended tax credit amounts are within the annual limit
12 provided in this subsection. The annual limit on the total amount of tax
13 credits for calendar year 2024 and each calendar year thereafter shall be
14 ten million dollars. Once credits have reached the annual limit for any
15 calendar year, no additional credits shall be allowed for such calendar
16 year. Credits shall be prorated among the notifications received on the
17 day the annual limit is exceeded. No more than fifty percent of the
18 credits allowed for any calendar year shall be for contributions to a
19 single eligible charitable organization.
20 Sec. 10. The department may adopt and promulgate rules and
21 regulations to carry out the Nebraska Pregnancy Help Act.
22 Sec. 11. Section 77-2715.07, Revised Statutes Cumulative Supplement,
23 2022, is amended to read:
24 77-2715.07 (1) There shall be allowed to qualified resident
25 individuals as a nonrefundable credit against the income tax imposed by