Bill > LB710

This bill increases the earned income tax credit (EITC), which is a tax benefit for low to moderate-income working individuals and families. Specifically, the bill modifies the state tax code to increase the refundable credit percentage for the EITC from ten percent to twenty percent of the federal earned income tax credit, effective for tax years beginning on or after January 1, 2025. The change applies to taxpayers who qualify for the federal EITC under section 32 of the Internal Revenue Code, with a condition that the credit will only be allowed for individuals who would have received the federal credit after accounting for any net operating loss carryforwards. This modification aims to provide additional financial support to working individuals with lower incomes by increasing the state-level tax credit that complements the federal EITC, potentially helping to reduce tax burden and provide extra financial assistance to working families.