(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 that pays relocation expenses for a qualifying employee shall be eligible to receive a credit that may be used to offset any income taxes due under the Nebraska Revenue Act of 1967, any premium and related retaliatory taxes due under section 44-150, 77-908, or 81-523, or any franchise taxes due under sections 77-3801 to 77-3807.

(2) The credit provided in this section shall be a refundable credit in an amount equal to fifty percent of the relocation expenses that were paid by the employer for a qualifying employee during the taxable year, not to exceed a maximum credit of five thousand dollars per qualifying employee.

(3) No credit shall be granted under this section unless the qualifying employee will receive an annual salary of at least seventy thousand dollars per year and not more than two hundred fifty thousand dollars per year.

(4) Any credit claimed by an employer under this section shall be recaptured by the department if the qualifying employee moves out of the state within two years after the credit is claimed. Any amount required to be recaptured shall be deemed an underpayment of tax and shall be due and payable on the tax return that is due immediately following the loss of residency.

(5) Notwithstanding any other limitation contained in the laws of this state, collection of any taxes deemed to be an underpayment by this section shall be allowed for a period of three years following the due date of the recaptured taxes.

(6) For taxable years beginning or deemed to begin on or after January 1, 2026, under the Internal Revenue Code of 1986, as amended, the department shall adjust the dollar amounts provided in subsection (3) of this section by the same percentage used to adjust individual income tax brackets under subsection (3) of section 77-2715.03.

(7) 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 (8) 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.

(8) 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 77-3110 has been reached.

(9) An employer shall claim any tax credits granted under this section by attaching the tax credit certification received from the department under subsection (7) of this section to the employer's tax return.

(10) An employer claiming a tax credit under the Relocation Incentive Act against any 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. The tax credit may fully offset any retaliatory tax imposed under Nebraska law. Any tax credit claimed shall be considered a payment of tax for purposes of subsection (1) of section 77-2734.03.