{"id":36391,"date":"2024-04-12T09:50:30","date_gmt":"2024-04-12T15:50:30","guid":{"rendered":"http:\/\/update.legislature.ne.gov\/?p=36391"},"modified":"2024-04-12T09:50:30","modified_gmt":"2024-04-12T15:50:30","slug":"proposed-tax-credits-reduced-advanced","status":"publish","type":"post","link":"https:\/\/update.legislature.ne.gov\/?p=36391","title":{"rendered":"Proposed tax credits reduced, advanced"},"content":{"rendered":"

A bill containing several proposed tax credits, including one to help Nebraskans offset expenses they incur when caring for a family member, advanced to the final round of debate April 10 after lawmakers amended it to reduce its cost.<\/p>\n

\"Sen.
Sen. Eliot Bostar<\/figcaption><\/figure>\n

Under LB937, introduced by Lincoln Sen. Eliot Bostar, a family caregiver would be eligible for a nonrefundable income tax credit equal to 50% of expenses incurred that are directly related to the care for and support of an eligible family member.<\/p>\n

Total credits would be limited to $2.5 million per year beginning with tax year 2025.<\/p>\n

As amended on general file, LB937 also contains provisions of several other bills heard by the Revenue Committee this session. On select file, Bostar offered an amendment, adopted 34-0, that he said would cap, delay or adjust various provisions to reduce the bill\u2019s cost.<\/p>\n

The amendment would limit total credits for caregivers to $1.5 million in fiscal year 2025-26 and FY2026-27 and $2.5 million in the following years.<\/p>\n

LB937 would limit the total amount of credits available under the Nebraska Biodiesel Tax Credit Act to $1.5 million in calendar year 2025 and $2 million in the following years.<\/p>\n

The amendment would limit the total to $1 million in FY2024-25 and $1.5 million in the following years.<\/p>\n

Under the bill, film and television production companies could apply for a refundable income tax credit equal to at least 20% of their qualifying expenditures attributable to the production of films, documentaries and other qualifying projects in Nebraska.<\/p>\n

LB937 would allow the state Department of Economic Development to approve no more than $1.5 million in credits annually. Bostar\u2019s amendment would limit the total to $500,000 in FY2025-26 and $1 million in the following years.<\/p>\n

The bill also would create the Individuals with Intellectual and Developmental Disabilities Support Act.<\/p>\n

Under LB937, qualifying direct support professionals who care for individuals with intellectual and developmental disabilities could claim a refundable state income tax credit. Employers of direct support professionals could claim a nonrefundable credit.<\/p>\n

The state Department of Revenue could approve a total of $2.5 million in credits under the act annually. Bostar\u2019s amendment would limit the total to $1 million in FY2025-26, $1.5 million in FY2026-27 and $2 million in later years.<\/p>\n

Currently, grocery stores, restaurants and agricultural producers may apply for a nonrefundable state income tax credit equal to 50% of the value of food they donate to food banks, pantries or rescues, up to a maximum of $2,500.<\/p>\n

Under LB937, the department could approve up to $1 million in credits annually. The amendment would lower the cap to $500,000 in credits each fiscal year beginning in FY2025-26.<\/p>\n

The bill would allow a producer or importer of sustainable aviation fuel to claim a nonrefundable income tax credit based on the number of gallons in all sold or used qualified mixtures.<\/p>\n

Bostar\u2019s amendment would allow the department to approve $500,000 in credits each fiscal year.<\/p>\n

Under LB937, a Class III shortline rail company located wholly or partly in Nebraska could apply to the department for a nonrefundable tax credit equal to 50% of its qualified maintenance expenditures during the tax year beginning in tax year 2024.<\/p>\n

The credit amount could not exceed $5,000 per mile of track, and the department could approve no more than $2 million in credits annually.<\/p>\n

Under Bostar\u2019s amendment, the credit could not exceed $1,500 per mile, and the department could approve no more than $500,000 in credits in FY2025-26 and $1 million in later years.<\/p>\n

Under LB937, Nebraska taxpayers could apply to the department for a one-time, refundable state income tax credit of up to $1,000 to offset the cost of installing a reverse osmosis system at their primary residence if test results show high levels of nitrates, uranium or certain chemicals in the drinking water.<\/p>\n

The department could approve a total of $1 million in credits each year. Bostar\u2019s amendment would limit the total to $500,000 for FY2024-25 and the following two fiscal years and $1 million in later years.<\/p>\n

Finally, LB937 would allow individuals, passthrough entities, corporations, estates and trusts to claim a nonrefundable credit of up to 50% of their state income tax liability on contributions they make to qualifying pregnancy help organizations.<\/p>\n

Total credits would be limited to $2 million per year beginning in calendar year 2025. Bostar\u2019s amendment would limit the total to $500,000 for FY2025-26 and $1 million for FY2026-27 and later years.<\/p>\n

After adopting the amendment, senators advanced LB937 to final reading by voice vote.<\/p>\n","protected":false},"excerpt":{"rendered":"

A bill containing several proposed tax credits, including one to help Nebraskans offset expenses they incur when caring for a family member, advanced to the final round of debate April 10 after lawmakers amended it to reduce its cost.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"colormag_page_container_layout":"default_layout","colormag_page_sidebar_layout":"default_layout","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[17],"tags":[264],"class_list":["post-36391","post","type-post","status-publish","format-standard","hentry","category-revenue","tag-sen-eliot-bostar"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/update.legislature.ne.gov\/index.php?rest_route=\/wp\/v2\/posts\/36391","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/update.legislature.ne.gov\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/update.legislature.ne.gov\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/update.legislature.ne.gov\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/update.legislature.ne.gov\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=36391"}],"version-history":[{"count":3,"href":"https:\/\/update.legislature.ne.gov\/index.php?rest_route=\/wp\/v2\/posts\/36391\/revisions"}],"predecessor-version":[{"id":36394,"href":"https:\/\/update.legislature.ne.gov\/index.php?rest_route=\/wp\/v2\/posts\/36391\/revisions\/36394"}],"wp:attachment":[{"href":"https:\/\/update.legislature.ne.gov\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=36391"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/update.legislature.ne.gov\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=36391"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/update.legislature.ne.gov\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=36391"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}