LB157 would create the Child Tax Credit Act and add a new refundable Nebraska income tax credit for taxpayers with qualifying children. A qualifying child would generally be a dependent age six or younger with a Social Security number or individual taxpayer identification number. For tax years beginning on or after January 1, 2024, the credit would be $1,000 per qualifying child for married filing jointly, head of household, and other filers, with phaseouts tied to federal adjusted gross income. The bill also directs the Department of Revenue to adjust the credit amounts and income thresholds for inflation beginning in later tax years and to submit an annual report to the Legislature on credit usage.
In addition to the new child credit, LB157 would exempt Child Tax Credit Act refunds from attachment, garnishment, and other creditor claims, and it would repeal the original sections of law being replaced. The bill also makes a conforming change to Nebraska tax law to recognize the new act and preserve related administrative authority for the Department of Revenue to adopt rules and regulations.
Impact
LB157 would amend Nebraska’s tax code by creating a new refundable state child tax credit and by changing creditor-protection rules for that refund. It would affect individual income taxpayers with qualifying children, especially lower- and middle-income families, and would require the Department of Revenue to administer the credit, adjust it for inflation, and report annually to the Legislature. The bill also repeals prior statutory language to harmonize the new credit structure with existing Nebraska Revenue Act provisions.
Sentiment
The available record shows little direct debate or recorded vote history, so there is no detailed committee or floor sentiment to summarize. Based on the bill’s design, the measure appears intended as a family tax relief proposal, with a policy emphasis on refundable benefits for households with young children. Its indefinite postponement suggests the proposal did not advance, but the provided materials do not indicate whether that was due to fiscal concerns, policy disagreement, or procedural reasons.
Contention
The main likely points of contention are the cost of a refundable tax credit, the income phaseout structure, and whether the benefit should be targeted to families with very young children only. Another possible issue is the bill’s interaction with existing tax credits and the administrative burden of annual inflation adjustments and reporting. Because the bill was indefinitely postponed and no transcripts or votes are provided, the specific objections and supporters are not identified in the record supplied.