77-3165.

Tax credit; amount; application; approval; annual limit.

(1) For all taxable years beginning on or after January 1, 2025, there shall be allowed a credit against the income tax imposed by the Nebraska Revenue Act of 1967 to any family caregiver who incurs eligible expenditures for the care and support of an eligible family member.

(2) The amount of the credit shall be equal to fifty percent of the eligible expenditures incurred during the taxable year by a family caregiver for the care and support of an eligible family member.

(3) The tax credit allowed under this section shall be a nonrefundable credit. Any amount of the credit that is unused may not be carried forward.

(4) The maximum allowable credit in any single taxable year for a family caregiver shall be two thousand dollars unless the eligible family member is a veteran or has a diagnosis of dementia in which case the maximum allowable credit shall be three thousand dollars. If two or more family caregivers claim the tax credit allowed by this section for the same eligible family member, the maximum allowable credit shall be allocated in equal amounts between each of the family caregivers.

(5) A family caregiver shall apply for the tax credit allowed under this section by submitting an application to the Department of Revenue, on a form prescribed by the department, with the following information:

(a) Documentation of the eligible expenditures incurred for the care and support of an eligible family member; and

(b) Any other documentation required by the department.

(6) If the Department of Revenue determines that the family caregiver qualifies for the tax credit under this section, the department shall approve the application and certify the amount of the approved credit to the family caregiver.

(7) The Department of Revenue shall consider applications in the order in which they are received and may approve tax credits under this section each fiscal year until the total amount of credits approved for the fiscal year equals one million five hundred thousand dollars for fiscal years 2025-26 and 2026-27 and two million five hundred thousand dollars for any fiscal year thereafter.