This legislative bill amends various sections of the Nebraska Revised Statutes to enhance the Affordable Housing Tax Credit Act and the Child Care Tax Credit Act. It introduces new definitions, including "pass-through entity," which covers partnerships, limited liability companies, and S corporations. The bill allows for the allocation, transfer, sale, and assignment of tax credits under the Affordable Housing Tax Credit Act, providing more flexibility for project owners. It also broadens the application of tax credits under the Child Care Tax Credit Act to offset multiple tax liabilities, such as income and franchise taxes. The changes will take effect for taxable years starting on or after January 1, 2024, and include provisions for recapturing state tax credits if federal low-income housing tax credits are disallowed.

Additionally, the bill establishes a nonrefundable tax credit for taxpayers making qualifying contributions, with the credit amount set at either 100% or 75% of the contribution, capped at $100,000 per taxable year. Full credit eligibility is contingent upon contributions to eligible programs in opportunity zones or those with children enrolled in the child care subsidy program. The bill also exempts taxpayers claiming this credit from additional retaliatory taxes on certain insurance premiums, ensuring that the credit can fully offset any such taxes. Furthermore, it amends existing tax regulations to integrate the Child Care Tax Credit Act with other tax credit acts and repeals several sections of the Revised Statutes to streamline legal language and maintain consistency with the new provisions.

Statutes affected:
Introduced: 77-908, 77-2502, 77-2503, 77-2506, 77-2508, 77-3806, 77-7202, 77-7204, 81-523
Final Reading: 77-908, 77-2502, 77-2503, 77-2506, 77-2508, 77-3806, 77-7202, 77-7204, 81-523
Slip Law: 77-908, 77-2502, 77-2503, 77-2506, 77-2508, 77-3806, 77-7202, 77-7204, 81-523