Adopt the Adoption Tax Credit Act

Brief

What this bill does

If it passes, what actually changes?

This is a tax bill. It creates a new state income tax credit for Nebraskans who adopt a child.

• Creates the Adoption Tax Credit Act in Sections 1 through 3 of the bill.
• Gives a refundable credit equal to ten percent of the taxpayer's federal adoption credit.
• Eligibility keys off the federal adoption expenses credit under 26 U.S.C. 23.
• Applies to taxable years beginning or deemed to begin on or after January 1, 2026.
• Adds the new act to the refundable credit list in section 77-2715.07, subsection (2)(d).
• Lets the Department of Revenue write rules; repeals and replaces the original section 77-2715.07.

What it says it is for

Does it do what it claims?

The title matches the bill. Every action the title promises shows up in an operative section, with one wording gap worth noting.

• Title says "adopt the Adoption Tax Credit Act"; Section 1 names exactly that act.
• Title's amendment of section 77-2715.07 happens in Section 4, as promised.
• Title's repeal of the original section happens in Section 5.
• "Harmonize provisions" amounts to adding the act's name to subsection (2)(d).
• Section 2 says "any taxpayer," while 77-2715.07(2) speaks of "qualified resident individuals."

Where Scripture bears on it

What does the Bible say about this?

Adoption is one of the few tax subjects Scripture speaks to directly rather than by analogy, and it speaks of it as redemption at a price: "To redeem them that were under the law, that we might receive the adoption of sons" (Galatians 4:5). That a cost stands between a child and a family, and that the cost is borne by someone other than the child, is the premise this bill quietly accepts when it reimburses a tenth of what the adopting household already spent. On the bill's one real ambiguity, whether the credit reaches any taxpayer or only qualified resident individuals, the older rule is blunt: "One law shall be to him that is homeborn, and unto the stranger that sojourneth among you" (Exodus 12:49). What neither verse settles is nearly everything a legislator must decide. They do not say that the state should pay, or that ten percent is the right share rather than five or fifty, or whether a credit should be refundable, or who should go without so that this credit can be funded. They establish that adoption is a good worth cost; they are silent on whose cost and how much.

The case each way

What is the strongest argument for, and against?

The disagreement is whether a refundable credit with no stated ceiling is worth the state revenue it gives up.

• For: Adoption costs land up front and large; a refund reaches families owing little tax.
• For: Piggybacking on 26 U.S.C. 23 avoids building a separate state eligibility test.
• For: Ten percent of an existing federal credit is a modest per-family amount.
• Against: The text sets no dollar cap, no annual total, and no sunset.
• Against: Refundability pays cash beyond tax owed, unlike most credits listed in 77-2715.07.
• Against: Tying the credit to federal law lets Congress change Nebraska's cost without a Nebraska vote.

What is unsettled

What should I be careful about?

This reading covers only the bill text as printed. Several practical questions the text alone does not answer.

• The text states no cost estimate, appropriation, or projected revenue loss.
• Whether nonresidents or part-year residents qualify is unclear from Section 2's "any taxpayer."
• "Federal tax credit allowed" is undefined as to federal liability limits or carryforwards.
• The Department of Revenue "may" adopt rules; the text neither requires nor scopes them.
• No effective date, emergency clause, or expiration date appears in the text provided.
• The text does not say how many Nebraskans claim the federal adoption credit.

Text (1)

• Introduced (application/pdf)

Each link opens the Legislature's own document. The text itself is not in our database yet (fetched lazily); when it lands these pages will carry it verbatim.

All Actions (10)

Votes (0)

There have been no roll call votes on this bill.

Sponsors (1)

• Sen. Eliot Bostar [District 29] — primary sponsor

Amendments (0)

There are no amendments to this bill.

Fiscal Notes & Statements (3)

• Committee Statement — Committee Statement
• Fiscal Note — Fiscal Note
• Statement of Intent — Statement of Intent

The Legislature's own companion documents; each link opens the official copy.

Committees (1)

Related Bills (0)

No related bill information was received for LB709.