{"id":36526,"date":"2024-04-18T14:58:49","date_gmt":"2024-04-18T20:58:49","guid":{"rendered":"http:\/\/update.legislature.ne.gov\/?p=36526"},"modified":"2024-04-18T14:58:49","modified_gmt":"2024-04-18T20:58:49","slug":"tax-credits-for-caregivers-others-created","status":"publish","type":"post","link":"https:\/\/update.legislature.ne.gov\/?p=36526","title":{"rendered":"Tax credits for caregivers, others created"},"content":{"rendered":"

Lawmakers approved a bill April 18 creating several new tax credits, including one to help Nebraskans offset expenses they incur when caring for a family member.<\/p>\n

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

Under LB937, introduced by Lincoln Sen. Eliot Bostar, a family caregiver is 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 are limited to $1.5 million in fiscal year 2025-26 and FY2026-27 and $2.5 million in the following years.<\/p>\n

As amended, LB937 contains provisions of several other bills heard by the Revenue Committee this session.<\/p>\n

Under the provisions of LB901, introduced by Sen. Lou Ann Linehan of Elkhorn, purchases made by a nonprofit organization are exempt from state sales and use tax if the nonprofit acquires property or contracts to build, improve or repair property that will be transferred to a nonprofit whose purchases already are exempt.<\/p>\n

The amended provisions of LB1002, sponsored by Plymouth Sen. Tom Brandt, set the maximum amount of tax credits available under the Nebraska Biodiesel Tax Credit Act at $1 million in FY2024-25 and $1.5 million in the following years.<\/p>\n

Under the amended provisions of LB1022, introduced by Sen. Rita Sanders of Bellevue, film and television production companies may 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 projects in Nebraska.<\/p>\n

The state Department of Economic Development could approve no more than $500,000 in credits in FY2025-26 and $1 million in the following years.<\/p>\n

The amended provisions of LB1025, introduced by Bostar, create the Individuals with Intellectual and Developmental Disabilities Support Act.<\/p>\n

The provisions allow qualifying direct support professionals who care for individuals with intellectual and developmental disabilities to claim a refundable state income tax credit.<\/p>\n

Employers of direct support professionals can claim a new nonrefundable credit, as can employers that either employ an individual receiving services pursuant to a Medicaid home and community-based services waiver or provide certain services to an individual pursuant to such a waiver.<\/p>\n

The state Department of Revenue may approve a total of $1 million in credits in FY2025-26, $1.5 million in FY2026-27 and $2 million in later years.<\/p>\n

Under a bill passed last session, 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 the provisions of LB1040, introduced by Omaha Sen. John Fredrickson, the department may approve $500,000 in credits each fiscal year beginning in FY2025-26.<\/p>\n

The amended provisions of LB1072, sponsored by Sen. George Dungan of Lincoln, 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. The department may approve $500,000 in credits each fiscal year.<\/p>\n

Under the amended provisions of LB1084, introduced by Sumner Sen. Teresa Ibach, a Class III shortline rail company located wholly or partly in Nebraska can apply to the department for a nonrefundable tax credit equal to 50% of its qualified maintenance expenditures during the tax year.<\/p>\n

The credit amount cannot exceed $1,500 per mile of track. The department may approve no more than $500,000 in credits in FY2025-26 and $1 million in later years.<\/p>\n

Under the provisions of LB1158, sponsored by Bostar, the state treasurer will contract with a medical debt relief coordinator to purchase and discharge medical debt of eligible residents.<\/p>\n

Nebraska residents with a household income at or below 400% of the federal poverty guidelines or with medical debt equal to at least 5% of the individual\u2019s household income qualify. Contributions to the program\u2019s fund are deductible for state income tax purposes.<\/p>\n

Under the amended provisions of LB1184, introduced by Bostar, Nebraska taxpayers can 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 may approve a total of $500,000 in credits in FY2024-25 and the following two fiscal years and $1 million in later years.<\/p>\n

The amended provisions of LB606, introduced last session by Sen. Joni Albrecht of Thurston, allows 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 are limited to $500,000 in FY2025-26 and $1 million in FY2026-27 and later years.<\/p>\n

Provisions of Brandt\u2019s LB1047 expand the list of denaturants subject to an excise tax paid by ethanol producers and impose the tax on 2% of certain agricultural ethyl alcohol sold that is unfit for beverage purposes.<\/p>\n

Finally, provisions of LB58, introduced by Omaha Sen. John Cavanaugh, exempt diapers from state sales and use tax.<\/p>\n

The department estimates that LB937 will reduce state general fund revenue by $1.2 million in fiscal year 2024-25, $6.7 million in FY2025-26 and $8.8 million in FY2026-27.<\/p>\n

The bill passed on a vote of 45-0.<\/p>\n","protected":false},"excerpt":{"rendered":"

Lawmakers approved a bill April 18 creating several new tax credits, including one to help Nebraskans offset expenses they incur when caring for a family member.<\/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-36526","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\/36526","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=36526"}],"version-history":[{"count":2,"href":"https:\/\/update.legislature.ne.gov\/index.php?rest_route=\/wp\/v2\/posts\/36526\/revisions"}],"predecessor-version":[{"id":36528,"href":"https:\/\/update.legislature.ne.gov\/index.php?rest_route=\/wp\/v2\/posts\/36526\/revisions\/36528"}],"wp:attachment":[{"href":"https:\/\/update.legislature.ne.gov\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=36526"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/update.legislature.ne.gov\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=36526"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/update.legislature.ne.gov\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=36526"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}