Increase the income tax credit and change the qualification criteria under the Volunteer Emergency Responders Incentive Act

109th Legislature (2025-2026) Introduced by Beau Ballard and 6 co-sponsors

Nebraska expands refundable volunteer tax credit for firefighters/responders to $1,250 from the second year on the certified list; claimed with your state return.

Title printed. Carryover bill

Purpose and intent

LB115 seeks to modify the Volunteer Emergency Responders Incentive Act in Nebraska.

The bill aims to increase the refundable state income tax credit for eligible volunteers and to change when the credit can first be claimed.

Conflicting language exists in the materials (see below): the introducer’s statement of intent describes increasing the credit from $250 to $1,000, with eligibility in the taxable year the volunteer qualifies. The drafted bill text, however, provides a different credit amount and timing (see Key Provisions).

Key provisions (as drafted in LB115)

Notes: The bill text underwent revision from the introducer’s intent. The following reflects the introduced bill language as presented in the version content.

Structure change: Repeals current Section 77-3105 and creates a revised Section 77-3105 to govern the program.

Eligible participants: Active volunteers identified by the certification administrator of the volunteer department as part of the “certified list” of:

Responders
Active rescue squad members
Active volunteer firefighters for the immediately preceding calendar year of service

Tax credit amount: The bill provides a refundable income tax credit for eligible volunteers. The draft language specifies the credit amount as $1,250 beginning with the second taxable year in which the volunteer is included on the certified list. (This appears to differ from the introductory statement of intent, which proposed $1,000.)

Claiming the credit: Volunteers claim the credit by attaching the certification document (from subsection (3) of section 77-3104) to their Nebraska state income tax return.

Timing of eligibility: The credit is available starting with the second taxable year in which the volunteer appears on the certified list, rather than after an initial two-year qualification period.

Administrative details:

The certification administrator must file the certified list with the Department of Revenue by February 15 each year and provide a copy to the relevant local governing bodies (counties, cities, villages, or fire protection districts).
The credit is structured as refundable, meaning eligible volunteers can receive a refund if the credit exceeds their tax liability.

Who would be affected

Primary beneficiaries: Nebraska-registered volunteers who serve as active firefighters, responders, or rescue squad members, and who are listed on the annual certified list maintained by the certification administrator of the volunteer department.

Secondary effects: Local governments and fire protection districts that receive copies of the certified lists; Department of Revenue administers the credit.

Procedural and timeline aspects

Introduced: January 10, 2025

Committee: Revenue

Hearing: January 24, 2025

Effective timetable (if enacted):

Certification list deadline: February 15 each year
Eligible credit year: begins in the second taxable year an individual appears on the certified list (per the drafted language)
Credit claimed on state income tax return, by attaching the required certification documentation

Important note on potential discrepancy

The introduction text states the credit would increase from $250 to $1,000.

The bill’s drafted section 77-3105, as published, specifies a credit of $1,250 beginning with the second taxable year.

Readers should verify the final enacted text for the exact credit amount and eligibility timing, as the introducer’s intent and the bill’s operative language currently appear inconsistent.

Bill