Caregiver Tax Credit Act

Neb. Rev. Stat. §§ 77-3163 to 77-3166

LB 937 (2024) (Sections 56 through 59). Operative for taxable years beginning on or after January 1, 2025.

The Caregiver Tax Credit Act (Act) establishes a nonrefundable tax credit for family caregivers who provide care and support to an eligible family member for tax years beginning on or after January 1, 2025, that requires an application filed with the Nebraska Department of Revenue (DOR).

Eligible family caregivers are individuals who provide care and support to an eligible family member and personally incur uncompensated expenses directly related to caring for an eligible family member. In addition, family caregivers have federal adjusted gross income of less than $100,000 for married, filing jointly returns or $50,000 for all other returns.

Eligible family members include a dependent, spouse, parent, or other relation by blood or marriage of the family caregiver who lives in a private residence and requires assistance with at least two activities of daily living as certified by a licensed health care provider. Family members living in an assisted-living center, nursing facility, or residential care home are not eligible.

The tax credit will equal 50% of the eligible expenditures incurred by the family caregiver during the taxable year with a maximum credit of $2,000, or $3,000 if the eligible family member is a veteran or is diagnosed with dementia. The eligible expenditure must be directly related to assisting the family caregiver in providing care to an eligible family member. Eligible expenditures do not include general household maintenance activities such as painting, plumbing, electrical repairs, or exterior maintenance. If two or more family caregivers claim the credit for the same eligible family member, the maximum credit will be allocated equally between family caregivers. Any unused credit cannot be carried forward.

Family caregivers must apply for the tax credit with DOR. If approved, DOR will certify the tax credits to the family caregiver. DOR will process applications in the order received based on the following annual limitations for the State fiscal year:

• July 1, 2025 to June 30, 2026            $1,500,000
• July 1, 2026 to June 30, 2027            $1,500,000
• State fiscal years after                        $2,500,000

For the 2025 taxable year, DOR will start accepting applications in February 2025, for eligible expenditures made on or after January 1, 2025.

Instructions to Apply for the Tax Credit (Coming Soon)

Contact Information
Mary Kate Kincaid
Attorney, Policy Section
Nebraska Department of Revenue 
301 Centennial Mall South
PO Box 94818 
Lincoln, NE 68509-4818
402-471-5921 
marykate.kincaid@nebraska.gov