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LEGISLATURE OF NEBRASKA
ONE HUNDRED NINTH LEGISLATURE
SECOND SESSION
LEGISLATIVE BILL 931
Introduced by Cavanaugh, J., 9.
Read first time January 09, 2026
Committee: Revenue
A BILL FOR AN ACT relating to revenue and taxation; to amend section1
77-2715.07, Revised Statutes Supplement, 2025; to provide an income2
tax credit related to premium payments for a qualified health plan;3
and to repeal the original section. 4
Be it enacted by the people of the State of Nebraska,5
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Section 1. Section 77-2715.07, Revised Statutes Supplement, 2025, is1
amended to read: 2
77-2715.07 (1) There shall be allowed to qualified resident3
individuals as a nonrefundable credit against the income tax imposed by4
the Nebraska Revenue Act of 1967: 5
(a) A credit equal to the federal credit allowed under section 22 of6
the Internal Revenue Code; and 7
(b) A credit for taxes paid to another state as provided in section8
77-2730. 9
(2) There shall be allowed to qualified resident individuals against10
the income tax imposed by the Nebraska Revenue Act of 1967:11
(a) For returns filed reporting federal adjusted gross incomes of12
greater than twenty-nine thousand dollars, a nonrefundable credit equal13
to twenty-five percent of the federal credit allowed under section 21 of14
the Internal Revenue Code of 1986, as amended, except that for taxable15
years beginning or deemed to begin on or after January 1, 2015, such16
nonrefundable credit shall be allowed only if the individual would have17
received the federal credit allowed under section 21 of the code after18
adding back in any carryforward of a net operating loss that was deducted19
pursuant to such section in determining eligibility for the federal20
credit; 21
(b) For returns filed reporting federal adjusted gross income of22
twenty-nine thousand dollars or less, a refundable credit equal to a23
percentage of the federal credit allowable under section 21 of the24
Internal Revenue Code of 1986, as amended, whether or not the federal25
credit was limited by the federal tax liability. The percentage of the26
federal credit shall be one hundred percent for incomes not greater than27
twenty-two thousand dollars, and the percentage shall be reduced by ten28
percent for each one thousand dollars, or fraction thereof, by which the29
reported federal adjusted gross income exceeds twenty-two thousand30
dollars, except that for taxable years beginning or deemed to begin on or31
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after January 1, 2015, such refundable credit shall be allowed only if1
the individual would have received the federal credit allowed under2
section 21 of the code after adding back in any carryforward of a net3
operating loss that was deducted pursuant to such section in determining4
eligibility for the federal credit; 5
(c) A refundable credit as provided in section 77-5209.01 for6
individuals who qualify for an income tax credit as a qualified beginning7
farmer or livestock producer under the Beginning Farmer Tax Credit Act8
for all taxable years beginning or deemed to begin on or after January 1,9
2006, under the Internal Revenue Code of 1986, as amended;10
(d) A refundable credit for individuals who qualify for an income11
tax credit under the Adoption Tax Credit Act, the Angel Investment Tax12
Credit Act, the Nebraska Advantage Microenterprise Tax Credit Act, the13
Nebraska Advantage Research and Development Act, the Reverse Osmosis14
System Tax Credit Act, or the Volunteer Emergency Responders Incentive15
Act; 16
(e) A refundable credit equal to ten percent of the federal credit17
allowed under section 32 of the Internal Revenue Code of 1986, as18
amended, except that for taxable years beginning or deemed to begin on or19
after January 1, 2015, such refundable credit shall be allowed only if20
the individual would have received the federal credit allowed under21
section 32 of the code after adding back in any carryforward of a net22
operating loss that was deducted pursuant to such section in determining23
eligibility for the federal credit; and 24
(f) A refundable credit as provided in section 77-7203 for25
individuals who qualify for an income tax credit under the Child Care Tax26
Credit Act for all taxable years beginning or deemed to begin on or after27
January 1, 2024, under the Internal Revenue Code of 1986, as amended.28
(3) There shall be allowed to all individuals as a nonrefundable29
credit against the income tax imposed by the Nebraska Revenue Act of30
1967: 31
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(a) A credit for personal exemptions allowed under section1
77-2716.01; 2
(b) A credit for (i) contributions to programs or projects certified3
for tax credit status as provided in the Creating High Impact Economic4
Futures Act and (ii) contributions to certified community betterment5
programs as provided in the Community Development Assistance Act. Each6
partner, each shareholder of an electing subchapter S corporation, each7
beneficiary of an estate or trust, or each member of a limited liability8
company shall report his or her share of the credit in the same manner9
and proportion as he or she reports the partnership, subchapter S10
corporation, estate, trust, or limited liability company income;11
(c) A credit for investment in a biodiesel facility as provided in12
section 77-27,236; 13
(d) A credit as provided in the New Markets Job Growth Investment14
Act; 15
(e) A credit as provided in the Nebraska Job Creation and Mainstreet16
Revitalization Act; 17
(f) A credit to employers as provided in sections 77-27,238 and18
77-27,240; 19
(g) A credit as provided in the Affordable Housing Tax Credit Act;20
(h) A credit to grocery store retailers, restaurants, and21
agricultural producers as provided in section 77-27,241;22
(i) A credit as provided in the Sustainable Aviation Fuel Tax Credit23
Act; 24
(j) A credit as provided in the Nebraska Shortline Rail25
Modernization Act; 26
(k) A credit as provided in the Nebraska Pregnancy Help Act; and27
(l) A credit as provided in the Caregiver Tax Credit Act.28
(4) There shall be allowed as a credit against the income tax29
imposed by the Nebraska Revenue Act of 1967: 30
(a) A credit to all resident estates and trusts for taxes paid to31
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another state as provided in section 77-2730; 1
(b) A credit to all estates and trusts for (i) contributions to2
programs or projects certified for tax credit status as provided in the3
Creating High Impact Economic Futures Act and (ii) contributions to4
certified community betterment programs as provided in the Community5
Development Assistance Act; and 6
(c) A refundable credit for individuals who qualify for an income7
tax credit as an owner of agricultural assets under the Beginning Farmer8
Tax Credit Act for all taxable years beginning or deemed to begin on or9
after January 1, 2009, under the Internal Revenue Code of 1986, as10
amended. The credit allowed for each partner, shareholder, member, or11
beneficiary of a partnership, corporation, limited liability company, or12
estate or trust qualifying for an income tax credit as an owner of13
agricultural assets under the Beginning Farmer Tax Credit Act shall be14
equal to the partner's, shareholder's, member's, or beneficiary's portion15
of the amount of tax credit distributed pursuant to subsection (6) of16
section 77-5211. 17
(5)(a) For all taxable years beginning on or after January 1, 2007,18
and before January 1, 2009, under the Internal Revenue Code of 1986, as19
amended, there shall be allowed to each partner, shareholder, member, or20
beneficiary of a partnership, subchapter S corporation, limited liability21
company, or estate or trust a nonrefundable credit against the income tax22
imposed by the Nebraska Revenue Act of 1967 equal to fifty percent of the23
partner's, shareholder's, member's, or beneficiary's portion of the24
amount of franchise tax paid to the state under sections 77-3801 to25
77-3807 by a financial institution. 26
(b) For all taxable years beginning on or after January 1, 2009,27
under the Internal Revenue Code of 1986, as amended, there shall be28
allowed to each partner, shareholder, member, or beneficiary of a29
partnership, subchapter S corporation, limited liability company, or30
estate or trust a nonrefundable credit against the income tax imposed by31
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the Nebraska Revenue Act of 1967 equal to the partner's, shareholder's,1
member's, or beneficiary's portion of the amount of franchise tax paid to2
the state under sections 77-3801 to 77-3807 by a financial institution.3
(c) Each partner, shareholder, member, or beneficiary shall report4
his or her share of the credit in the same manner and proportion as he or5
she reports the partnership, subchapter S corporation, limited liability6
company, or estate or trust income. If any partner, shareholder, member,7
or beneficiary cannot fully utilize the credit for that year, the credit8
may not be carried forward or back. 9
(6) There shall be allowed to all individuals nonrefundable credits10
against the income tax imposed by the Nebraska Revenue Act of 1967 as11
provided in section 77-3604 and refundable credits against the income tax12
imposed by the Nebraska Revenue Act of 1967 as provided in section13
77-3605. 14
(7)(a) For taxable years beginning or deemed to begin on or after15
January 1, 2020, and before January 1, 2032, under the Internal Revenue16
Code of 1986, as amended, a nonrefundable credit against the income tax17
imposed by the Nebraska Revenue Act of 1967 in the amount of five18
thousand dollars shall be allowed to any individual who purchases a19
residence during the taxable year if such residence:20
(i) Is located within an area that has been declared an extremely21
blighted area under section 18-2101.02; 22
(ii) Is the individual's primary residence; and23
(iii) Was not purchased from a family member of the individual or a24
family member of the individual's spouse. 25
(b) The credit provided in this subsection shall be claimed for the26
taxable year in which the residence is purchased. If the individual27
cannot fully utilize the credit for such year, the credit may be carried28
forward to subsequent taxable years until fully utilized.29
(c) No more than one credit may be claimed under this subsection30
with respect to a single residence. 31
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(d) The credit provided in this subsection shall be subject to1
recapture by the Department of Revenue if the individual claiming the2
credit sells or otherwise transfers the residence or quits using the3
residence as his or her primary residence within five years after the end4
of the taxable year in which the credit was claimed.5
(e) For purposes of this subsection, family member means an6
individual's spouse, child, parent, brother, sister, grandchild, or7
grandparent, whether by blood, marriage, or adoption.8
(8) There shall be allowed to all individuals refundable credits9
against the income tax imposed by the Nebraska Revenue Act of 1967 as10
provided in the Cast and Crew Nebraska Act, the Nebraska Biodiesel Tax11
Credit Act, the Nebraska Higher Blend Tax Credit Act, the Nebraska12
Property Tax Incentive Act, the Relocation Incentive Act, and the13
Renewable Chemical Production Tax Credit Act. 14
(9)(a) For taxable years beginning or deemed to begin on or after15
January 1, 2022, under the Internal Revenue Code of 1986, as amended, a16
refundable credit against the income tax imposed by the Nebraska Revenue17
Act of 1967 shall be allowed to the parent of a stillborn child if:18
(i) A fetal death certificate is filed pursuant to subsection (1) of19
section 71-606 for such child; 20
(ii) Such child had advanced to at least the twentieth week of21
gestation; and 22
(iii) Such child would have been a dependent of the individual23
claiming the credit. 24
(b) The amount of the credit shall be two thousand dollars.25
(c) The credit shall be allowed for the taxable year in which the26
stillbirth occurred. 27
(10) There shall be allowed to all individuals nonrefundable credits28
against the income tax imposed by the Nebraska Revenue Act of 1967 as29
provided in section 77-7204. 30
(11) There shall be allowed to all individuals refundable credits31
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against the income tax imposed by the Nebraska Revenue Act of 1967 as1
provided in section 77-3157 and nonrefundable credits against the income2
tax imposed by the Nebraska Revenue Act of 1967 as provided in sections3
77-3156, 77-3158, and 77-3159. 4
(12) For taxable years beginning or deemed to begin on or after5
January 1, 2026, under the Internal Revenue Code of 1986, as amended, a6
refundable credit against the income tax imposed by the Nebraska Revenue7
Act of 1967 shall be allowed to any individual who received a premium8
assistance credit under 26 U.S.C. 36B for the taxable year. The credit9
shall be equal to the difference between the premium assistance credit10
amount allowed by 26 U.S.C. 36B(b)(3)(A)(iii) as it existed prior to its11
expiration and the premium assistance credit amount otherwise allowed by12
26 U.S.C. 36B(b)(3)(A)(i) and (ii). 13
Sec. 2. Original section 77-2715.07, Revised Statutes Supplement,14
2025, is repealed. 15
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