Bill > LB157

This bill adopts the Child Tax Credit Act, which establishes a new refundable tax credit for Nebraska taxpayers with young children. Starting in 2026, parents with children six years old or younger who are claimed as dependents and have a social security number or individual taxpayer identification number will be eligible for a tax credit. The credit amount is $1,000 per qualifying child, but it is reduced on a sliding scale based on the taxpayer's federal adjusted gross income. For married couples filing jointly, the credit begins to decrease when income exceeds $110,000; for head of household filers, the reduction starts at $92,500; and for other filing statuses, the reduction begins at $75,000. The credit amounts will be adjusted annually for inflation starting in 2027. The Department of Revenue will be required to submit an annual report to the Legislature about the credit's usage and is authorized to create rules and regulations for implementing the program. Additionally, the bill ensures that these tax credit refunds will be exempt from creditor claims, providing extra financial protection for families receiving the credit.

Budget and Finance

https://nebraskalegislature.gov/bills/view_bill.php?DocumentID=58940