All Roll Calls
Yes: 193 • No: 5
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
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Bill Overview
Analyzed Economic Effects
5 provisions identified: 1 benefits, 1 costs, 3 mixed.
More flexible housing tax credits
Beginning January 1, 2024, more entities count as taxpayers for Nebraska’s affordable housing credit, including income taxpayers, insurers, and franchise‑tax banks. Credits can now offset Nebraska income tax, certain insurance premium taxes, or the franchise tax. Nebraska issues credits for each building in the first six federal credit years, and any federal first‑year reduction can be used in year seven. Partnerships, LLCs, and S corps can split credits however owners agree if owners are in by February 15 of the filing year; credits and interests can be transferred with 30‑day notice and the buyer’s tax ID.
New limits and recapture on housing credits
Beginning January 1, 2024, if federal low‑income housing credits are taken back during the six‑year period, Nebraska takes back the same share, raising your Nebraska tax for that year. Nebraska cannot allocate state credits to projects placed in service on or before January 1, 2018. Each year, total state housing credits cannot exceed 100% of the federal credits awarded, and combined federal and state credits cannot be more than needed to make a project feasible. These changes apply to tax years starting on or after January 1, 2024.
Tax credit for child care donations
Beginning January 1, 2024, Nebraska offers a Child Care Tax Credit for qualifying donations. The credit is nonrefundable and equals 75% of your gift, or 100% if the provider is in a Nebraska federal opportunity zone or serves at least one state‑subsidy child verified by the health department, up to $100,000 per year. You can use it against Nebraska income tax, certain insurance premium taxes, or the franchise tax, and insurers do not owe extra retaliatory tax because of it. You cannot claim the credit if you also took a federal charitable deduction for the same gift, or if you have a financial interest in the provider and the gift is not at arm’s length. Unused credit can carry forward for up to five years. You must apply to the Department of Revenue; approvals are first‑come until $2.5 million in credits are certified each year.
Insurer and bank tax changes
Insurance companies pay yearly premium taxes on prior‑year premiums, due by March 1: 1% for most lines, 0.5% for group sickness and accident, and 0.25% for captive insurers, with allowed deductions for return premiums and certain dividends. Fire insurance premiums are taxed at 0.75% for foreign/alien insurers and 0.375% for domestic insurers, also due by March 1. Financial institutions can use credits under the affordable housing and child care acts to reduce their franchise tax when they qualify. Franchise tax refunds must be claimed within 90 days of the latest of when the tax was due/paid, a regulator’s change to deposits or income, or the housing authority’s eligibility statement.
Old statutory sections repealed
The law repeals earlier versions of several tax and credit statutes and replaces them with the new language. This updates the code and does not, by itself, change what you pay or receive.
Sponsors & Cosponsors
Sponsor
Eliot Bostar
legislature
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
legislature vote • 4/24/2026
Vote
Yes: 37 • No: 1 • Other: 11
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
Actions Timeline
Approved by Governor on February 25, 2025
2/26/2025legislatureDispensing of reading at large approved
2/21/2025legislaturePassed on Final Reading 46-2-1
2/21/2025legislaturePresident/Speaker signed
2/21/2025legislaturePresented to Governor on February 21, 2025
2/21/2025legislaturePlaced on Final Reading with ST2
2/18/2025legislatureEnrollment and Review ST2 filed
2/18/2025legislatureEnrollment and Review ST2 recorded
2/18/2025legislatureHallstrom name added
2/13/2025legislatureBostar AM106 adopted
2/7/2025legislatureAdvanced to Enrollment and Review for Engrossment
2/7/2025legislatureBostar AM106 filed
2/6/2025legislaturePlaced on Select File
2/4/2025legislatureAdvanced to Enrollment and Review Initial
1/30/2025legislaturePlaced on General File
1/28/2025legislatureNotice of hearing for January 24, 2025
1/16/2025legislatureReferred to Revenue Committee
1/15/2025legislatureDate of introduction
1/13/2025legislature
Bill Text
Introduced
2/26/2025
Enrolled / Slip Law
Final / Enacted