Lawmakers approved a bill on the final day of session Thursday, creating several new tax credits, including one to help Nebraskans offset expenses they incur when caring for a family member.
Under LB937, introduced by Lincoln Sen. Eliot Bostar, a family caregiver is eligible for a nonrefundable income tax credit equal to 50% of expenses incurred that are directly related to the care for and support of an eligible family member. Total credits are limited to $1.5 million in fiscal year 2025-26 and FY2026-27 and $2.5 million in the following years.
As amended, LB937 contains provisions of several other bills heard by the Revenue Committee this session:
- LB901 will make purchases made by a nonprofit organization exempt from state sales and use tax if the nonprofit acquires property or contracts to build, improve or repair property that will be transferred to a nonprofit whose purchases already are exempt.
- LB1002 sets the maximum amount of tax credits available under the Nebraska Biodiesel Tax Credit Act at $1 million in FY2024-25 and $1.5 million in the following years.
- LB1022 allows for film and television production companies may apply for a refundable income tax credit equal to at least 20% of their qualifying expenditures attributable to the production of films, documentaries and other projects in Nebraska.
- LB1025 creates the Individuals with Intellectual and Developmental Disabilities Support Act, which allows qualifying direct support professionals who care for individuals with intellectual and developmental disabilities to claim a refundable state income tax credit.
- LB1072 allows a producer or importer of sustainable aviation fuel to claim a nonrefundable income tax credit based on the number of gallons in all sold or used qualified mixtures. The department may approve $500,000 in credits each fiscal year.
- LB1084 allows a Class III shortline rail company located wholly or partly in Nebraska to apply to for a nonrefundable tax credit equal to 50% of its qualified maintenance expenditures during the tax year.
- LB1158 stipulated that the state treasurer will contract with a medical debt relief coordinator to purchase and discharge medical debt of eligible residents.
- LB1184 allows Nebraska taxpayers to apply for a one-time, refundable state income tax credit of up to $1,000 to offset the cost of installing a reverse osmosis system at their primary residence if test results show high levels of nitrates, uranium or certain chemicals in the drinking water.
- LB606 allows individuals, passthrough entities, corporations, estates and trusts to claim a nonrefundable credit of up to 50% of their state income tax liability on contributions they make to qualifying pregnancy help organizations.
- LB58 exempts diapers from state sales and use tax.
The department estimates that LB937 will reduce state general fund revenue by $1.2 million in fiscal year 2024-25, $6.7 million in FY2025-26 and $8.8 million in FY2026-27.
The bill passed on a vote of 45-0.