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LB 709

Adopt the Adoption Tax Credit Act

109th Legislature (2025-2026) Introduced by Eliot Bostar

LB 709 offers a 10% state tax credit on federal adoption expenses, easing financial burdens for adoptive families starting in 2026, promoting adoption in Nebraska.

Provisions/portions of LB709 amended into LB647 by AM1202
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Bill Summary · LB 709

Summary of Legislative Bill LB 709: Adoption Tax Credit Act

Purpose and Intent

LB 709, titled the Adoption Tax Credit Act, aims to provide financial relief to families who adopt children by establishing a state income tax credit. The credit is designed to be a percentage of the federal adoption tax credit, thereby encouraging adoption and supporting families during the adoption process.

Key Provisions

  • Tax Credit Amount: The bill proposes a refundable income tax credit equal to 10% of the federal adoption expenses tax credit as defined in 26 U.S.C. 23.
  • Eligibility: The credit is available to any taxpayer who qualifies for the federal adoption expenses tax credit.
  • Implementation Date: The tax credit would apply to taxable years beginning on or after January 1, 2026.
  • Department of Revenue Authority: The bill grants the Nebraska Department of Revenue the authority to establish necessary rules and regulations to implement the Adoption Tax Credit Act.
  • Amendments: The bill includes provisions to amend existing statutes to harmonize them with the new tax credit.

Affected Parties

  • Adoptive Families: Families that adopt children and qualify for the federal adoption tax credit will benefit directly from this state tax credit.
  • State Revenue Department: The Department of Revenue will be responsible for administering the new tax credit and ensuring compliance with the regulations.

Legislative Process and Timeline

  • Introduced: January 22, 2025
  • Committee Hearing: The Revenue Committee held a hearing on February 7, 2025, where proponents, including Senator Eliot Bostar and representatives from various family services organizations, testified in favor of the bill.
  • Committee Action: The bill was advanced to General File following a roll call vote in the Revenue Committee.
  • Subsequent Actions: Portions of LB 709 were later amended into LB 647 by AM1202. The bill was ultimately indefinitely postponed on June 2, 2025.

Conclusion

LB 709 represents an effort to support adoptive families in Nebraska by providing a financial incentive through a state tax credit. While the bill has seen initial support and committee approval, its future remains uncertain following its postponement. The adoption of this credit could significantly impact families considering adoption, making the process more financially accessible.

Compiled from official sources — confirm details with the bill’s official record.

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