WeVote
Log In

Bill

Bill

LB 182

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

109th Legislature (2025-2026) Introduced by Eliot Bostar and 1 co-sponsor

Nebraska expands who can use affordable housing and child care tax credits (including nonprofits and certain insurers/financial institutions) and clarifies transfer and use rules.

Approved by Governor on February 25, 2025
0
WeVote Research Nonpartisan
Bill Summary · LB 182

Summary — LB 182 (2025)

Title: Change provisions relating to the Affordable Housing Tax Credit Act and the Child Care Tax Credit Act
Status: Approved by Governor (Feb 25, 2025) — became law

Purpose

LB 182 expands who can use certain Nebraska tax credits and clarifies/modernizes transfer and allocation rules under two state credit programs: the Nebraska Affordable Housing Tax Credit Act and the Nebraska Child Care Tax Credit Act. The bill also harmonizes related tax code references.

Key provisions

Child Care Tax Credit Act

  • Expands eligibility to allow insurance companies and financial institutions to receive credits under the Child Care Tax Credit Act by adding the Act to lists of credits that generate tax offsets for those entities (amendments to statutes including 77-908, 77-3806, and 81-523).
  • Broadens the types of tax liabilities against which qualifying tax credits may be applied: income tax, franchise tax, premium tax, and retaliatory tax (amendment to 77-7204).
  • Prohibits imposition of additional retaliatory tax as a result of using these credits; clarifies that credits are to be treated as payments and may fully offset retaliatory taxes.

Affordable Housing Tax Credit Act

  • Clarifies and redefines several terms used in the Act (notably “taxpayer,” “pass-through entity,” and “qualified taxpayer”) by amending sections such as 77-2502, 77-2503, and 77-2506.
  • Explicitly includes nonprofit corporations (26 U.S.C. 501(c)(3) and 501(c)(4)) and certain insurance companies/financial institutions within the definition of “taxpayer” eligible to use the Nebraska affordable housing tax credits.
  • Confirms and expands the ability to transfer, sell, or assign affordable housing tax credits:
    • Pass‑through entities can allocate credits among partners/members/shareholders or transfer/sell/assign credits to a taxpayer.
    • A taxpayer who receives a transferred credit must have the credit in hand prior to claiming it on a return.
    • Requires notification to the Department of Revenue: transferors must provide the tax identification number of the transferee at least 30 days before the transferee may claim the credit (notification format set by the Department).
  • Adjusts cross‑references and harmonizes language across statutes relating to allocation and transferability.

Who is affected

  • Owners/developers of qualified affordable housing projects, and their partners, members, or S‑corporation shareholders.
  • Nonprofit developers qualifying under 501(c)(3)/(c)(4).
  • Insurance companies and financial institutions that now may utilize child care and affordable housing credits against applicable taxes.
  • Nebraska Department of Revenue (administration, notification, and processing of transferred credits).
  • Taxpayers who purchase or receive assigned tax credits.

Effective dates and procedural history

  • Introduced Jan 13, 2025; Revenue Committee hearing Jan 24, 2025. Amendment AM106 was adopted during floor consideration.
  • Passed final reading 46–2–1 (Feb 21, 2025); signed by Governor Feb 25, 2025.
  • AM106 added an applicability clause: changes to sections 77-2502, 77-2503, and 77-2506 apply to taxable years beginning or deemed to begin on or after Jan 1, 2024.
  • (Committee report earlier referenced a July 1, 2026 effective date for some Affordable Housing changes; the adopted amendment (AM106) provides the January 1, 2024 applicability noted above in the enrolled version.)

Implementation notes / fiscal

  • The law requires Department of Revenue forms/procedures for transfer notifications and claiming transferred credits.
  • No dollar amounts or budget estimates are specified in the bill text; fiscal effects depend on the volume of credits claimed or transferred and how new recipients (insurers, financial institutions, nonprofits) use them.

Statutes amended (selected)

77-908; 77-2502; 77-2503; 77-2506; 77-2508; 77-3806; 77-7202; 77-7204; 81-523 (and a repeal of original sections where noted).

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

Sign in to ask a question.