PRIA Logo™
NebraskaLB182109th Legislature 1st and 2nd SessionslegislatureWALLET

Change provisions relating to the Affordable Housing Tax Credit Act and the Child Care Tax Credit Act

Sponsored By: Eliot Bostar

Signed by Governor

Revenue Committee

Personalized for You

How does this bill affect your finances?

Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.

Free to download

Bill Overview

Analyzed Economic Effects

3 provisions identified: 2 benefits, 0 costs, 1 mixed.

Tax credit for child care donations

Beginning January 1, 2024, you can get a Child Care Tax Credit for qualifying donations to licensed child care programs or intermediaries. Qualifying gifts can be cash or property, and may fund facilities, equipment, training, or staff retention. The credit equals 100% if the program is in an Opportunity Zone or serves at least one child in the state subsidy program; otherwise it is 75%. The cap is $100,000 per taxpayer each year, with a $2.5 million statewide cap and first-come approvals. You can use the credit to lower Nebraska income tax, certain insurance premium and retaliatory taxes, or the financial institution franchise tax. Claiming it against premium or retaliatory taxes does not create extra retaliatory tax and is treated as a tax payment. You cannot also take a federal charitable deduction for the same gift. Unused credit can carry forward up to five years.

Insurers can use new tax credits

Insurers can now use credits from the Affordable Housing Tax Credit Act and the Child Care Tax Credit Act to reduce Nebraska insurance premium tax and fire insurance tax. Use of these credits remains subject to each program’s rules and caps.

Investors get broader tradable housing credits

Beginning January 1, 2024, more entities can claim Nebraska affordable housing tax credits, including insurers, certain banks, and 501(c)(3)/(c)(4) nonprofits. Pass-through entities are partnerships, LLCs, and S corporations. Pass-throughs can allocate credits to owners or sell/assign them. Owners receiving an allocation must have been admitted or acquired shares on or before February 15 of the year the return claiming the credit is filed. A transferee must receive the credit before filing, and the transferor must notify the Department of Revenue with the transferee’s taxpayer ID at least 30 days before the credit is claimed. If federal housing credits are recaptured or disallowed, Nebraska recaptures the same percent and adds that amount to the taxpayer’s bill in the year the Department declares it.

Sponsors & Cosponsors

Sponsor

  • Eliot Bostar

    Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 193 • No: 5

legislature vote • 2/21/2025

Final Reading

Yes: 46 • No: 2 • Other: 1

legislature vote • 2/7/2025

Vote

Yes: 36 • No: 1 • Other: 12

legislature vote • 2/7/2025

Vote

Yes: 37 • No: 1 • Other: 11

legislature vote • 1/30/2025

Vote

Yes: 37 • No: 0 • Other: 12

legislature vote • Unknown

Vote

Yes: 37 • No: 1 • Other: 11

Actions Timeline

  1. Approved by Governor on February 25, 2025

    2/25/2025legislature

  2. Presented to Governor on February 21, 2025

    2/21/2025legislature

  3. President/Speaker signed

    2/21/2025legislature

  4. Passed on Final Reading 46-2-1

    2/21/2025legislature

  5. Dispensing of reading at large approved

    2/21/2025legislature

  6. Enrollment and Review ST2 recorded

    2/18/2025legislature

  7. Enrollment and Review ST2 filed

    2/18/2025legislature

  8. Placed on Final Reading with ST2

    2/18/2025legislature

  9. Hallstrom name added

    2/13/2025legislature

  10. Advanced to Enrollment and Review for Engrossment

    2/7/2025legislature

  11. Bostar AM106 adopted

    2/7/2025legislature

  12. Bostar AM106 filed

    2/6/2025legislature

  13. Placed on Select File

    2/4/2025legislature

  14. Advanced to Enrollment and Review Initial

    1/30/2025legislature

  15. Placed on General File

    1/28/2025legislature

  16. Notice of hearing for January 24, 2025

    1/16/2025legislature

  17. Referred to Revenue Committee

    1/15/2025legislature

  18. Date of introduction

    1/13/2025legislature

Bill Text

  • Introduced

    1/13/2025

    PDF

  • Enrolled / Slip Law

    PDF

  • Final / Enacted

    PDF

Related Bills

Back to State Legislation