Nebraska Revised Statute 77-27,240

Chapter 77


Individual convicted of a felony; employer; tax credit; application; Department of Revenue; powers and duties.

(1) For taxable years beginning or deemed to begin on or after January 1, 2023, under the Internal Revenue Code of 1986, as amended, an employer that employs an eligible employee during the taxable year shall be eligible to receive a nonrefundable credit against the income tax imposed by the Nebraska Revenue Act of 1967.

(2) The credit provided in this section shall be an amount equal to ten percent of the wages paid by the employer to the eligible employee during the taxable year, except that:

(a) The credit shall only be allowed with respect to wages paid during the first twelve months of the eligible employee's employment with the employer; and

(b) The total credit taken pursuant to this section with respect to any one eligible employee shall not exceed twenty thousand dollars.

(3) An employer shall apply for the credit provided in this section by submitting an application to the Department of Revenue on a form prescribed by the department. The application shall include:

(a) The number of eligible employees employed by the employer during the taxable year;

(b) The amount of wages paid to each such eligible employee during the taxable year; and

(c) Any other information required by the department to verify the employer's eligibility for the credit.

(4) Subject to subsection (5) of this section, if the Department of Revenue determines that the employer qualifies for a tax credit under this section, the department shall approve the application and certify the amount of the approved credit to the employer.

(5) The Department of Revenue shall consider applications in the order in which they are received and may approve tax credits under this section each year until the total amount of approved credits reaches five million dollars.

(6) The Department of Revenue may adopt and promulgate rules and regulations to carry out this section.

(7) For purposes of this section, eligible employee means an individual who has been convicted of a felony in this or any other state.