LB 182 — Change provisions relating to the Affordable Housing Tax Credit Act and the Child Care Tax Credit Act

LB182 LB182 2025 LEGISLATURELEGISLATIVE OFBILL NEBRASKA182 ONEApproved HUNDREDby NINTHthe LEGISLATUREGovernor FIRSTFebruary SESSION25, LEGISLATIVE2025 BILL 182 FINAL READING   Introduced by Bostar, 29;

Read  firstA timeBILL JanuaryFOR 13,AN 2025ACT Committee:relating to revenue and taxation;

Revenue A BILL FOR AN ACT relating to revenue and taxation;

Be it enacted by the people of the State of Nebraska, -1- LB182 LB182 2025 Section 1.

Any such insurance company shall receive a credit on the tax imposed as provided -2- LB182 LB182 2025 in the Creating High Impact Economic Futures Act, the Nebraska Job Creation and Mainstreet Revitalization Act, the New Markets Job Growth Investment Act, the Nebraska Higher Blend Tax Credit Act, the Relocation Incentive Act, the Sustainable Aviation Fuel Tax Credit Act, the Nebraska Shortline Rail Modernization Act, the Child Care Tax Credit Act, and the Affordable Housing Tax Credit Act.

and (8) Taxpayer means a person, firm, corporation, or other business entity subject to the income tax imposed by section 77-2715 or 77-2734.02, an insurance company subject to premium and related -3- LB182 LB182 2025 retaliatory tax liability imposed by section 44-150, 77-908, or 81-523, or a financial institution subject to the franchise tax imposed by sections 77-3801 to 77-3807, or a nonprofit corporation of the type listed in 26 U.S.C.

-1- LB182 LB182 2025 501(c)(4).

Any pass-through entity that receives an allocation of -4- LB182 LB182 2025 the Nebraska affordable housing tax credit, either from the owner of the qualified project or from another pass-through entity, may (a) further allocate the tax credit among some or all of the partners, members, or shareholders, or (b) transfer, sell, or assign all or a portion of the tax credit to a taxpayer.

For any tax year in which a credit is allocated, transferred, sold, or assigned pursuant to this subsection, the pass-pass-through through entity allocating the tax credit, or taxpayer transferring, selling, or assigning the tax credit, as applicable, shall notify the Department of Revenue of the allocation, transfer, sale, or assignment and provide the tax identification number of the allocatee or transferee at least thirty days prior to the taxpayer claiming the tax credit.

(3) If the owner of the qualified project is (a) a partnership, (b) a limited liability company, or (c) a corporation having an election in effect under subchapter S of the Internal Revenue Code of 1986, as amended, the Nebraska affordable housing tax credit shall be allocated among some or all of the partners, members, or shareholders of the owner of the qualified project in any manner agreed to by such persons, but only if such persons have been admitted as partners or members, or have -5- LB182 LB182 2025 acquired their shares, on or prior to February 15 of the year in which the tax return, or amended return, claiming the tax credit is filed.

(4) The maximum amount of Nebraska affordable housing tax credits awarded to all qualified projects in any given allocation year shall be no more than one hundred percent of the total amount of federal low-low-income income housing tax credits awarded by the authority in the same allocation year.

77-2506 If a portion of any federal low-income housing tax credits taken -2- LB182 LB182 2025 on a qualified project is required to be recaptured or is otherwise -6- LB182 LB182 2025 disallowed under 26 U.S.C.

(2) Sections 77-2714 to 77-27,135 relating to deficiencies, penalties, interest, the collection of delinquent amounts, and appeal -7- LB182 LB182 2025 procedures for the tax imposed by section 77-2734.02 shall also apply to the tax imposed by section 77-3802.

(4) Intermediary means any organization that distributes funds for -8- LB182 LB182 2025 the purpose of supporting an eligible program;

The term includes resident and nonresident individuals, estates, trusts, and corporations, an insurance -3- LB182 LB182 2025 company subject to premium and related retaliatory tax liability imposed by section 44-150, 77-908, or 81-523, or a financial institution subject to the franchise tax imposed by sections 77-3801 to 77-3807;

and (8) Total household income means federal modified adjusted gross -9- LB182 LB182 2025 income.

The Department of Revenue shall not use any verification information obtained from the Department -10- LB182 LB182 2025 of Health and Human Services except for purposes directly connected with the administration of the Child Care Tax Credit Act.

(11) A taxpayer claiming a tax credit under this section against any -11- LB182 LB182 2025 premium and related retaliatory taxes due under section 44-150, 77-908, or 81-523 shall not be required to pay any additional retaliatory tax as a result of claiming the tax credit.

-4- LB182 LB182 2025 (3) The term fire insurance business, as used in subsections (1), (2), and (4) of this section, shall include, but not be limited to, premiums of policies on fire risks on automobiles, whether written under floater form or otherwise.

(4) Return premiums on fire insurance business, subject to the fire insurance tax, in accordance with subsections (1) and (2) of this section, may be deducted from the gross direct writing premiums for the purpose of the tax calculations provided for by subsections (1) and (2) -12- LB182 LB182 2025 of this section.

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