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