Pregnancy Help Act FAQs
Yes. If there is an increase in the intended tax credit, a new Form 3152-IC with the appropriate box checked must be filed with DOR for the additional amount.
Yes, the approved PHO must notify DOR by filing a Nebraska Pregnancy Help Act Notification Regarding Intended Contribution, Form 3152-X, within 30 days after the taxpayer failed to meet the 60-day deadline.
Yes, the approved pregnancy help organization must notify DOR by filing the Nebraska Pregnancy Help Act Notification Regarding Intended Contribution, Form 3152-X, within 30 days after the reduced contribution is made.
The total tax liability before nonrefundable credits, refundable credits, withholding, and payments is multiplied by 50%. Any of the nonrefundable Pregnancy Help Act tax credit unused on the return may be carried forward and applied against the taxpayer’s income tax liability for the next five years immediately following the tax year in which the credit is first allowed.
Yes, an intended tax credit and the tax credit allowed amount may be different. Credits are limited to the lesser of the following:
- The total amount of such contributions made during the tax year; or
- 50% of the income tax liability of the contributing taxpayer for the tax year.
Example 1: An individual taxpayer’s intended tax credit and contribution made to a Pregnancy Help Organization (PHO) is $10,000 in 2025. The taxpayer files their 2025 Nebraska Income Tax Return and has an income tax liability of $10,000. The taxpayer may only take a nonrefundable credit of $5,000 on their 2025 return as the credit is limited to 50% of the income tax liability.
Example 2: A Partnership makes the Pass-Through Entity Tax Election on their 2025 return. The partnership’s intended tax credit amount and contribution made to a PHO is $50,000 in 2025. The partnership has a tax liability of $150,000 on their 2025 return. The Partnership may claim a nonrefundable tax credit of $50,000 on the 2025 return.
Example 3: A trust distributes all income to its beneficiaries. The trust’s intended tax credit and contribution made to a PHO is $25,000 in 2025. The trust’s nonrefundable credit is zero because it has no income tax liability, and the beneficiaries may not take the nonrefundable credit on their income tax return.
No. You may not claim the nonrefundable credit on your Nebraska Income Tax Return for any amount claimed as a charitable contribution under the Internal Revenue Code of 1986, as amended, on your Federal Income Tax Return.
No. QCDs as defined in Internal Revenue Code (IRC) § 408(d)(8)(B) are not eligible for the tax credit provided for under the Act because the QCD:
- is a contribution made directly to the organization by the trustee, not by the beneficiary of the IRA; and
- is not included in the federal gross income of the beneficiary.
Yes, if there is no income tax liability for a contributing taxpayer, the taxpayer may not claim the credit and will have zero tax credits to claim, carry forward, or distribute.
The credit is limited to 50% of the income tax liability of the pass-through entity. Any amount of the credit not used by the pass-through entity may be distributed to the owners or beneficiaries in the same manner as the income or loss of the pass-through entity. If the pass-through entity is not subject to income tax, the tax credit will be zero and any distributed credit will be zero.
Taxpayers who are married but file separate returns for a tax year in which they could have filed a joint return may each claim only one-half of the tax credit that would otherwise have been allowed for a joint return.
DOR considers notifications regarding intended tax credit amounts in the order in which they are received. If the annual limit is reached, credit requests received on the day the statutory limit is reached will be prorated.
The taxpayer who failed to make their contribution within the 60-day period will forfeit their reserved tax credit.
