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.
A direct support professional may apply for the tax credit by submitting the Intellectual and Developmental Disabilities Direct Support Professional Tax Credit Application, Form 3157-A, and the Intellectual and Developmental Disabilities Direct Support Professional Employer Verification, Form 3157-V to the Nebraska Department of Revenue (DOR) via the upload link below.The direct support professional will need a Form 3157-V completed by each employer for whom they worked as a direct support professional during the taxable year. The DOR will use the Forms 3157-V to verify that the direct support professional met the requirements of working at least 6 months and at least 500 hours as a direct support professional during the taxable year.
If approved, the DOR will certify the tax credits to the direct support professional who may claim the tax credit by completing the applicable line on their individual income tax return and attaching the tax credit certification to the 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
Application forms may be submitted starting January of 2026.
The submission link for Forms 3157-A and 3757-V will be enabled in January 2026.
