2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-2715.07 - Income tax credits.

77-2715.07.
Income tax credits.
(1) There shall be allowed to qualified resident individuals as a nonrefundable credit against the income tax imposed by the Nebraska Revenue Act of 1967:
(a) A credit equal to the federal credit allowed under section 22 of the Internal Revenue Code; and
(b) A credit for taxes paid to another state as provided in section 77-2730.
(2) There shall be allowed to qualified resident individuals against the income tax imposed by the Nebraska Revenue Act of 1967:
(a) For returns filed reporting federal adjusted gross incomes of greater than twenty-nine thousand dollars, a nonrefundable credit equal to twenty-five percent of the federal credit allowed under section 21 of the Internal Revenue Code of 1986, as amended, except that for taxable years beginning or deemed to begin on or after January 1, 2015, such nonrefundable credit shall be allowed only if the individual would have received the federal credit allowed under section 21 of the code after adding back in any carryforward of a net operating loss that was deducted pursuant to such section in determining eligibility for the federal credit;
(b) For returns filed reporting federal adjusted gross income of twenty-nine thousand dollars or less, a refundable credit equal to a percentage of the federal credit allowable under section 21 of the Internal Revenue Code of 1986, as amended, whether or not the federal credit was limited by the federal tax liability. The percentage of the federal credit shall be one hundred percent for incomes not greater than twenty-two thousand dollars, and the percentage shall be reduced by ten percent for each one thousand dollars, or fraction thereof, by which the reported federal adjusted gross income exceeds twenty-two thousand dollars, except that for taxable years beginning or deemed to begin on or after January 1, 2015, such refundable credit shall be allowed only if the individual would have received the federal credit allowed under section 21 of the code after adding back in any carryforward of a net operating loss that was deducted pursuant to such section in determining eligibility for the federal credit;
(c) A refundable credit as provided in section 77-5209.01 for individuals who qualify for an income tax credit as a qualified beginning farmer or livestock producer under the Beginning Farmer Tax Credit Act for all taxable years beginning or deemed to begin on or after January 1, 2006, under the Internal Revenue Code of 1986, as amended;
(d) A refundable credit for individuals who qualify for an income tax credit under the Angel Investment Tax Credit Act, the Nebraska Advantage Microenterprise Tax Credit Act, the Nebraska Advantage Research and Development Act, or the Volunteer Emergency Responders Incentive Act; and
(e) A refundable credit equal to ten percent of the federal credit allowed under section 32 of the Internal Revenue Code of 1986, as amended, except that for taxable years beginning or deemed to begin on or after January 1, 2015, such refundable credit shall be allowed only if the individual would have received the federal credit allowed under section 32 of the code after adding back in any carryforward of a net operating loss that was deducted pursuant to such section in determining eligibility for the federal credit.
(3) There shall be allowed to all individuals as a nonrefundable credit against the income tax imposed by the Nebraska Revenue Act of 1967:
(a) A credit for personal exemptions allowed under section 77-2716.01;
(b) A credit for contributions to certified community betterment programs as provided in the Community Development Assistance Act. Each partner, each shareholder of an electing subchapter S corporation, each beneficiary of an estate or trust, or each member of a limited liability company shall report his or her share of the credit in the same manner and proportion as he or she reports the partnership, subchapter S corporation, estate, trust, or limited liability company income;
(c) A credit for investment in a biodiesel facility as provided in section 77-27,236;
(d) A credit as provided in the New Markets Job Growth Investment Act;
(e) A credit as provided in the Nebraska Job Creation and Mainstreet Revitalization Act;
(f) A credit to employers as provided in sections 77-27,238 and 77-27,240;
(g) A credit as provided in the Affordable Housing Tax Credit Act;
(h) A credit to grocery store retailers, restaurants, and agricultural producers as provided in section 77-27,241; and
(i) A credit as provided in the Opportunity Scholarships Act.
(4) There shall be allowed as a credit against the income tax imposed by the Nebraska Revenue Act of 1967:
(a) A credit to all resident estates and trusts for taxes paid to another state as provided in section 77-2730;
(b) A credit to all estates and trusts for contributions to certified community betterment programs as provided in the Community Development Assistance Act; and
(c) A refundable credit for individuals who qualify for an income tax credit as an owner of agricultural assets under the Beginning Farmer Tax Credit Act for all taxable years beginning or deemed to begin on or after January 1, 2009, under the Internal Revenue Code of 1986, as amended. The credit allowed for each partner, shareholder, member, or beneficiary of a partnership, corporation, limited liability company, or estate or trust qualifying for an income tax credit as an owner of agricultural assets under the Beginning Farmer Tax Credit Act shall be equal to the partner's, shareholder's, member's, or beneficiary's portion of the amount of tax credit distributed pursuant to subsection (6) of section 77-5211.
(5)(a) For all taxable years beginning on or after January 1, 2007, and before January 1, 2009, under the Internal Revenue Code of 1986, as amended, there shall be allowed to each partner, shareholder, member, or beneficiary of a partnership, subchapter S corporation, limited liability company, or estate or trust a nonrefundable credit against the income tax imposed by the Nebraska Revenue Act of 1967 equal to fifty percent of the partner's, shareholder's, member's, or beneficiary's portion of the amount of franchise tax paid to the state under sections 77-3801 to 77-3807 by a financial institution.
(b) For all taxable years beginning on or after January 1, 2009, under the Internal Revenue Code of 1986, as amended, there shall be allowed to each partner, shareholder, member, or beneficiary of a partnership, subchapter S corporation, limited liability company, or estate or trust a nonrefundable credit against the income tax imposed by the Nebraska Revenue Act of 1967 equal to the partner's, shareholder's, member's, or beneficiary's portion of the amount of franchise tax paid to the state under sections 77-3801 to 77-3807 by a financial institution.
(c) Each partner, shareholder, member, or beneficiary shall report his or her share of the credit in the same manner and proportion as he or she reports the partnership, subchapter S corporation, limited liability company, or estate or trust income. If any partner, shareholder, member, or beneficiary cannot fully utilize the credit for that year, the credit may not be carried forward or back.
(6) There shall be allowed to all individuals nonrefundable credits against the income tax imposed by the Nebraska Revenue Act of 1967 as provided in section 77-3604 and refundable credits against the income tax imposed by the Nebraska Revenue Act of 1967 as provided in section 77-3605.
(7)(a) For taxable years beginning or deemed to begin on or after January 1, 2020, and before January 1, 2026, under the Internal Revenue Code of 1986, as amended, a nonrefundable credit against the income tax imposed by the Nebraska Revenue Act of 1967 in the amount of five thousand dollars shall be allowed to any individual who purchases a residence during the taxable year if such residence:
(i) Is located within an area that has been declared an extremely blighted area under section 18-2101.02;
(ii) Is the individual's primary residence; and
(iii) Was not purchased from a family member of the individual or a family member of the individual's spouse.
(b) The credit provided in this subsection shall be claimed for the taxable year in which the residence is purchased. If the individual cannot fully utilize the credit for such year, the credit may be carried forward to subsequent taxable years until fully utilized.
(c) No more than one credit may be claimed under this subsection with respect to a single residence.
(d) The credit provided in this subsection shall be subject to recapture by the Department of Revenue if the individual claiming the credit sells or otherwise transfers the residence or quits using the residence as his or her primary residence within five years after the end of the taxable year in which the credit was claimed.
(e) For purposes of this subsection, family member means an individual's spouse, child, parent, brother, sister, grandchild, or grandparent, whether by blood, marriage, or adoption.
(8) There shall be allowed to all individuals refundable credits against the income tax imposed by the Nebraska Revenue Act of 1967 as provided in the Nebraska Biodiesel Tax Credit Act, the Nebraska Higher Blend Tax Credit Act, the Nebraska Property Tax Incentive Act, and the Renewable Chemical Production Tax Credit Act.
(9)(a) For taxable years beginning or deemed to begin on or after January 1, 2022, under the Internal Revenue Code of 1986, as amended, a refundable credit against the income tax imposed by the Nebraska Revenue Act of 1967 shall be allowed to the parent of a stillborn child if:
(i) A fetal death certificate is filed pursuant to subsection (1) of section 71-606 for such child;
(ii) Such child had advanced to at least the twentieth week of gestation; and
(iii) Such child would have been a dependent of the individual claiming the credit.
(b) The amount of the credit shall be two thousand dollars.
(c) The credit shall be allowed for the taxable year in which the stillbirth occurred.
(10) There shall be allowed to all individuals refundable credits against the income tax imposed by the Nebraska Revenue Act of 1967 as provided in section 77-7203 and nonrefundable credits against the income tax imposed by the Nebraska Revenue Act of 1967 as provided in section 77-7204.
Source
Laws 1987, LB 773, § 6;
Laws 1989, LB 739, § 2;
Laws 1993, LB 5, § 3;
Laws 1993, LB 121, § 503;
Laws 1993, LB 240, § 4;
Laws 1993, LB 815, § 23;
Laws 1994, LB 977, § 12;
Laws 1996, LB 898, § 5;
Laws 1998, LB 1028, § 2;
Laws 1999, LB 630, § 1;
Laws 2001, LB 433, § 4;
Laws 2005, LB 312, § 12;
Laws 2006, LB 968, § 8;
Laws 2006, LB 990, § 1;
Laws 2007, LB343, § 3;
Laws 2007, LB367, § 20;
Laws 2007, LB456, § 1;
Laws 2009, LB165, § 12;
Laws 2011, LB389, § 12;
Laws 2012, LB1128, § 22;
Laws 2014, LB191, § 17;
Laws 2015, LB591, § 12;
Laws 2016, LB774, § 7;
Laws 2016, LB884, § 19;
Laws 2016, LB886, § 6;
Laws 2016, LB889, § 10;
Laws 2019, LB86, § 10;
Laws 2019, LB560, § 1;
Laws 2020, LB1107, § 130;
Laws 2021, LB432, § 11;
Laws 2022, LB917, § 3;
Laws 2022, LB1261, § 10;
Laws 2023, LB727, § 69;
Laws 2023, LB753, § 14;
Laws 2023, LB754, § 8.
Note:
The Revisor of Statutes has pursuant to section 49-769 correlated LB727, section 69, with LB753, section 14, and LB754, section 8, to reflect all amendments.
Note:
Changes made by LB727 became operative September 2, 2023. Changes made by LB753 became operative January 1, 2024. Changes made by LB754 became effective June 1, 2023.
Cross References
Affordable Housing Tax Credit Act, see section 77-2501.
Angel Investment Tax Credit Act, see section 77-6301.
Beginning Farmer Tax Credit Act, see section 77-5201.
Community Development Assistance Act, see section 13-201.
Nebraska Advantage Microenterprise Tax Credit Act, see section 77-5901.
Nebraska Advantage Research and Development Act, see section 77-5801.
Nebraska Biodiesel Tax Credit Act, see section 77-7009.
Nebraska Higher Blend Tax Credit Act, see section 77-7001.
Nebraska Job Creation and Mainstreet Revitalization Act, see section 77-2901.
Nebraska Property Tax Incentive Act, see section 77-6701.
New Markets Job Growth Investment Act, see section 77-1101.
Opportunity Scholarships Act, see section 77-7101.
Renewable Chemical Production Tax Credit Act, see section 77-6601.
Volunteer Emergency Responders Incentive Act, see section 77-3101.