(1) For taxable years beginning or deemed to begin on or after January 1, 2024, under the Internal Revenue Code of 1986, as amended, a taxpayer shall be eligible to receive a one-time credit against the income tax imposed by the Nebraska Revenue Act of 1967 for the cost of installation of a reverse osmosis system at the primary residence of the taxpayer if test results for the following in the drinking water for such residence are above:

(a) Ten parts per million for nitrate nitrogen;

(b) Four parts per trillion for perfluorooctanoic acid or perfluorooctanesulfonic acid;

(c) Thirty micrograms per liter or thirty parts per billion for uranium; or

(d) One on the Hazard Index for perfluorononanoic acid, perfluorohexanesulfonic acid, hexafluoropropylene oxide dimer acid and its ammonium salt, or perfluorobutanesulfonic acid.

(2) Only one taxpayer per residence may be a recipient of the credit.

(3) The credit provided in this section shall be a refundable tax credit equal to fifty percent of the cost incurred by the taxpayer during the taxable year for installation of the reverse osmosis system, up to a maximum of one thousand dollars.

(4) A taxpayer shall apply for the credit provided in this section by submitting an application to the department with the following information:

(a) Documentation of the test results of the drinking water for the taxpayer's primary residence;

(b) Documentation of the cost of the reverse osmosis system installed at such residence; and

(c) Any other documentation required by the department.

(5) If the department determines that the taxpayer qualifies for the tax credit under this section, the department shall approve the application and certify the amount of the approved credit to the taxpayer.

(6) The department shall consider applications in the order in which they are received and may approve tax credits under this section each fiscal year until the aggregate limit allowed under subsection (7) of this section has been reached.

(7) The department may approve tax credits for each fiscal year until the total amount of credits approved reaches five hundred thousand dollars for fiscal years 2024-25, 2025-26, and 2026-27 and one million dollars for any fiscal year thereafter.

(8) A taxpayer shall claim any tax credits granted under this section by attaching the tax credit certification received from the department under subsection (5) of this section to the taxpayer's tax return.