Reverse Osmosis System Tax Credit Act
Neb. Rev. Stat. §§ 77-3167 to 77-3170
LB 937 – (Sections 60 through 63, July 19, 2024)
The Reverse Osmosis System Tax Credit Act (Act) establishes a one-time refundable income tax credit for the installation of a reverse osmosis system at a primary residence of a taxpayer. The credit equals 50% of the cost incurred by the taxpayer for installing the reverse osmosis system during the tax year, up to a maximum credit of $1,000.
Beginning with the 2024 tax year, individual income taxpayers may claim a credit for the cost of installing a reverse osmosis water filtration system if the test results for the drinking water are above the following:
- Ten parts per million for nitrate nitrogen;
- Four parts per trillion for perfluorooctanoic acid or perfluorooctanesulfonic acid;
- Thirty micrograms per liter or 30 parts per billion for uranium; or
- One on the Hazard Index for perfluorononanoic acid, perfluorohexanesulfonic acid, hexafluoropropylene oxide dimer acid and its ammonium salt, orperfluorobutanesulfonic acid.
The tax credit is limited to one taxpayer per residence. Taxpayers subject to the income tax imposed by the Nebraska Revenue Act of 1967, may submit an application with the test results to the Nebraska Department of Revenue (DOR). DOR will review the application and notify the taxpayer of the approved tax credit amount. Applications for the tax credit will be processed in the order received based on the following annual limitations in the Nebraska state fiscal years:
- July 1, 2024 to June 30, 2025 $ 500,000
- July 1, 2025 to June 30, 2026 $ 500,000
- July 1, 2026 to June 30, 2027 $ 500,000
- State fiscal years after $1,000,000
Form
Reverse Osmosis System Tax Credit, Form 1040N-OS
Contact Information
Fran Krejci
Revenue Tax Specialist, Policy Section
Nebraska Department of Revenue
301 Centennial Mall South
PO Box 94818
Lincoln, NE 68509-4818
402-471-5643 Fax: 402-471-5946
fran.krejci@nebraska.gov
