Individuals with Intellectual and Developmental Disabilities Support Act Refundable Tax Credit
Neb. Rev. Stat. §§ 77-3154 through 77-3162
LB 937 (2024) (Sections 34 through 42). Operative for taxable years beginning on or after January 1, 2025.
The Individuals with Intellectual and Developmental Disabilities Support Act (Act) established a refundable income tax credit for direct support professional employees for tax years beginning on or after January 1, 2025.
A direct support professional is any individual who is employed in Nebraska and provides direct care support or any other form of treatment, services, or care for individuals with intellectual and developmental disabilities.
A refundable income tax credit of $500 is available to direct support professionals who:
- Are employed as a direct support professional for at least 6 months during the taxable year; and
- Worked at least 500 hours as a direct support professional during the taxable year.
Employment and service dates in the calendar year qualify the direct support professional for the credit to be claimed on the individual income tax return that begins on or after January 1 of that calendar year.
A direct support professional may apply for the tax credit by submitting the Individuals with Intellectual and Developmental Disabilities Support Act Direct Support Professional Tax Credit Application, Form 3157-A through the Electronic Document & Application Submission Hub (eDASH).
As part of the application process, the direct support professional must upload an Individuals with Intellectual and Developmental Disabilities Support Act Direct Support Professional Employer Verification Form, 3157-E completed by each employer for whom they worked for as a direct support professional during the taxable year when submitting their credit application in eDASH. The Nebraska Department of Revenue (DOR) will use the information provided in the eDASH application and the Forms 3157-E to verify that the direct support professional met the requirements of working at least 6 months and at least 500 hours during the taxable year.
***Please note that the Form 3157-E is required to be submitted with the application in eDASH. Form 3157-E must be completed by the direct support professional’s employers in advance of applying for the credit in eDASH. The direct support professional will need the information provided by their employers on the Forms 3157-E to complete the required information on the Form 3157-A application in eDASH. Form 3157-E is not the application for this tax credit. ***
If approved, the DOR will certify the tax credits to the direct support professional. The direct support professional will need the Certification Number from the Credit Authorization section of their approved Form 3157-A when claiming the credit on the applicable line of their Nebraska individual income tax return.
DOR will process applications for all tax credits established under the Act in the order received until the aggregate limit allowed under the Act has been reached. The annual limit for the State fiscal year is:
July 1, 2025 to June 30, 2026 $1,000,000
July 1, 2026 to June 30, 2027 $1,500,000
State fiscal years after $2,000,000
Tax Credit Authorization Table
Instructions to Apply for the Tax Credit
The submission link for eDASH will be enabled in February 2026. Credits can be used starting with the 2025 tax year income tax returns.
***Reminder: The Form 3157-A will be electronically submitted using the eDASH link above. This application method is fast, easy, and secure.***
