Tax credit for employers of felons created

Businesses that employ felons may apply for a state income tax credit under a proposal passed by lawmakers April 12.

Sen. Justin Wayne
Sen. Justin Wayne

Under LB917, introduced by Omaha Sen. Justin Wayne, a business is eligible for a nonrefundable state income tax credit equal to 10 percent of the wages paid to an individual who has been convicted of a felony.

The credit applies to wages paid during the first 12 months of the individual’s employment, and the total credit per employee may not exceed $20,000.

The state Department of Revenue may approve up to $5 million in credits each year beginning in tax year 2023.

The department estimates that LB917 will reduce state general fund revenue by $4.6 million in fiscal year 2023-24 and $400,000 in FY2024-25.

The bill passed on a vote of 47-0.

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