Child care, affordable housing tax credit changes approved

A bill intended to create additional investment in affordable housing and child care programs in Nebraska received final approval from lawmakers Feb. 21.

Individuals, businesses and other entities subject to state income tax may apply for a nonrefundable credit of up to $100,000 for contributions they make to eligible child care programs.

Under LB182, sponsored by Lincoln Sen. Eliot Bostar, insurance companies and financial institutions also qualify for the credit and may use it to offset premium and related retaliatory taxes and franchise taxes due.

The bill also makes certain nonprofit corporations eligible for Nebraska affordable housing tax credits and allows a taxpayer without an ownership interest in a qualified project to transfer, sell or assign the credits to another taxpayer.

LB182 passed on a vote of 46-2.