Tax credit for community college taxes paid

(1) For taxable years beginning or deemed to begin on or after January 1, 2022, under the Internal Revenue Code of 1986, as amended, there shall be allowed to each eligible taxpayer a refundable credit against the income tax imposed by the Nebraska Revenue Act of 1967 or against the franchise tax imposed by sections 77-3801 to 77-3807 .

(2) For taxable years beginning or deemed to begin during calendar year 2022, the credit shall be equal to the credit percentage for the taxable year, as set by the department under this subsection, multiplied by the amount of community college taxes paid by the eligible taxpayer during such taxable year. The department shall set the credit percentage so that the total amount of credits for such taxable years shall be fifty million dollars.

(3) For taxable years beginning or deemed to begin during calendar year 2023, the credit shall be equal to the credit percentage for the taxable year, as set by the department under this subsection, multiplied by the amount of community college taxes paid by the eligible taxpayer during such taxable year. The department shall set the credit percentage so that the total amount of credits for such taxable years shall be one hundred million dollars.

(4) For taxable years beginning or deemed to begin on or after January 1, 2024, the credit shall be equal to one hundred percent of the community college taxes paid by the eligible taxpayer during the taxable year.

(5) If the community college taxes are paid by a corporation having an election in effect under subchapter S of the Internal Revenue Code, a partnership, a limited liability company, a trust, or an estate, the refundable credit shall be claimed by such corporation, partnership, limited liability company, trust, or estate.

(6) For any fiscal year or short year taxpayer, the credit allowed under subsection (2) or (3) of this section may be claimed in the first taxable year that begins following the calendar year for which the credit percentage was determined. The credit shall be taken for the community college taxes paid by the taxpayer during the immediately preceding calendar year.