Sections 77-3154 to 77-3162 shall be known and may be cited as the Individuals with Intellectual and Developmental Disabilities Support Act.

For purposes of the Individuals with Intellectual and Developmental Disabilities Support Act:

(1) Department means the Department of Revenue;

(2) Direct support professional means any individual who is employed in this state and provides direct care support or any other form of treatment, services, or care for individuals with intellectual and developmental disabilities; and

(3) Medicaid home and community-based services waiver means a medicaid waiver approved by the federal Centers for Medicare and Medicaid Services under the authority of section 1915(c) of the federal Social Security Act. The term includes a comprehensive developmental disabilities waiver and a developmental disabilities adult day waiver.

(1) For taxable years beginning or deemed to begin on or after January 1, 2025, under the Internal Revenue Code of 1986, as amended, any employer that employs one or more direct support professionals during the taxable year shall be eligible to receive a credit against the income tax imposed by the Nebraska Revenue Act of 1967.

(2) The tax credit shall be in an amount equal to five hundred dollars multiplied by the number of direct support professionals who:

(a) Are employed by such employer for at least six months during the taxable year; and

(b) Work at least five hundred hours for such employer during the taxable year.

(3) The tax credit provided in this section shall be a nonrefundable tax credit.

(4) An employer shall apply for the credit provided in this section by submitting an application to the department on a form prescribed by the department. Subject to subsection (5) of this section, if the department determines that the employer qualifies for tax credits under this section, the department shall approve the application and certify the amount of credits approved to the employer.

(5) The department shall consider applications in the order in which they are received and may approve tax credits under this section in any year until the aggregate limit allowed under section 77-3160 has been reached.

(6) An employer shall claim any tax credits granted under this section by attaching the tax credit certification received from the department under subsection (4) of this section to the employer's tax return.

(1) For taxable years beginning or deemed to begin on or after January 1, 2025, under the Internal Revenue Code of 1986, as amended, a direct support professional shall be eligible to receive a credit against the income tax imposed by the Nebraska Revenue Act of 1967 if he or she:

(a) Is employed as a direct support professional for at least six months during the taxable year; and

(b) Works at least five hundred hours as a direct support professional during the taxable year.

(2) The tax credit shall be in an amount equal to five hundred dollars.

(3) The tax credit provided in this section shall be a refundable tax credit.

(4) A direct support professional shall apply for the credit provided in this section by submitting an application to the department on a form prescribed by the department. Subject to subsection (5) of this section, if the department determines that the direct support professional qualifies for tax credits under this section, the department shall approve the application and certify the amount of credits approved to the direct support professional.

(5) The department shall consider applications in the order in which they are received and may approve tax credits under this section in any year until the aggregate limit allowed under section 77-3160 has been reached.

(6) A direct support professional shall claim any tax credits granted under this section by attaching the tax credit certification received from the department under subsection (4) of this section to the direct support professional's tax return.

(1) For taxable years beginning or deemed to begin on or after January 1, 2025, under the Internal Revenue Code of 1986, as amended, any employer that employs an individual receiving services pursuant to a medicaid home and community-based services waiver shall be eligible to receive a credit against the income tax imposed by the Nebraska Revenue Act of 1967.

(2) The tax credit shall be in an amount equal to one thousand dollars multiplied by the number of employees who:

(a) Are receiving services pursuant to a medicaid home and community-based services waiver;

(b) Are employed by such employer for at least six months during the taxable year; and

(c) Work at least two hundred hours for such employer during the taxable year.

(3) The tax credit provided in this section shall be a nonrefundable tax credit.

(4) An employer shall apply for the credit provided in this section by submitting an application to the department on a form prescribed by the department. Subject to subsection (5) of this section, if the department determines that the employer qualifies for tax credits under this section, the department shall approve the application and certify the amount of credits approved to the employer.

(5) The department shall consider applications in the order in which they are received and may approve tax credits under this section in any year until the aggregate limit allowed under section 77-3160 has been reached.

(6) An employer shall claim any tax credits granted under this section by attaching the tax credit certification received from the department under subsection (4) of this section to the employer's tax return.

(1) For taxable years beginning or deemed to begin on or after January 1, 2025, under the Internal Revenue Code of 1986, as amended, an employer shall be eligible to receive a credit against the income tax imposed by the Nebraska Revenue Act of 1967 if such employer provides any of the following types of services to an individual pursuant to a medicaid home and community-based services waiver:

(a) Prevocational;

(b) Supported employment - individual;

(c) Small group vocational support; or

(d) Supported employment - follow along.

(2) The tax credit shall be in an amount equal to one thousand dollars multiplied by the number of individuals described in subsection (1) of this section who received the applicable services from the employer during the taxable year.

(3) The tax credit provided in this section shall be a nonrefundable tax credit.

(4) An employer shall apply for the credit provided in this section by submitting an application to the department on a form prescribed by the department. Subject to subsection (5) of this section, if the department determines that the employer qualifies for tax credits under this section, the department shall approve the application and certify the amount of credits approved to the employer.

(5) The department shall consider applications in the order in which they are received and may approve tax credits under this section in any year until the aggregate limit allowed under section 77-3160 has been reached.

(6) An employer shall claim any tax credits granted under this section by attaching the tax credit certification received from the department under subsection (4) of this section to the employer's tax return.

The department may approve tax credits under the Individuals with Intellectual and Developmental Disabilities Support Act each fiscal year until the total amount of credits approved for the fiscal year reaches one million dollars for fiscal year 2025-26, one million five hundred thousand dollars for fiscal year 2026-27, and two million dollars for any fiscal year thereafter.

If any employer receiving a tax credit under the Individuals with Intellectual and Developmental Disabilities Support Act is (1) a partnership, (2) a limited liability company, (3) a corporation having an election in effect under subchapter S of the Internal Revenue Code of 1986, as amended, or (4) an estate or trust, the tax credit may be distributed in the same manner and proportion as the partner, member, shareholder, or beneficiary reports the partnership, limited liability company, subchapter S corporation, estate, or trust income.

The department may adopt and promulgate rules and regulations to carry out the Individuals with Intellectual and Developmental Disabilities Support Act.