Bill > LB709

This bill adopts the Adoption Tax Credit Act, which creates a new state tax credit for individuals who are eligible for the federal adoption expenses tax credit. Starting in taxable years beginning on or after January 1, 2026, qualifying taxpayers can claim a refundable state tax credit equal to 10% of the federal adoption tax credit they receive in the same tax year. The federal adoption tax credit (found in 26 U.S.C. 23) helps offset the expenses associated with adopting a child by providing a tax benefit to adoptive parents. The bill also authorizes the Department of Revenue to create rules and regulations for implementing this new tax credit. By adding this provision to section 77-2715.07 of the Nebraska Revised Statutes, the bill expands the list of available tax credits for Nebraska residents and provides financial support to families who are growing through adoption. The credit is designed to be straightforward, directly tying the state tax credit amount to the existing federal adoption expenses tax credit.

Budget and Finance

https://nebraskalegislature.gov/bills/view_bill.php?DocumentID=59136