Pregnancy Help Act
The Nebraska Pregnancy Help Act (Act) provides nonrefundable tax credits for tax years beginning on or after January 1, 2025, to taxpayers who make cash contributions to pregnancy help organizations in Nebraska that have been approved by the Nebraska Department of Revenue (DOR) as an eligible charitable organization under the Act.
Approval of Eligible Charitable Organizations
A pregnancy help organization wishing to be approved as an eligible charitable organization under the Act must submit the Pregnancy Help Organization Certification, Form 3147, signed by an officer of the organization, to DOR, along with verification of the organization’s exemption from federal income taxation under section 501(c)(3) of the Internal Revenue Code of 1986, as amended. DOR approval of the Form 3147 is required. Only pregnancy help organizations approved by DOR as an eligible charitable organization (approved PHO) can accept cash contributions that qualify for the nonrefundable tax credit under the Act.
Eligible Contributions
Taxpayers must notify the approved PHO of their intended contribution and the amount to be claimed as a tax credit under the Act. The approved PHO will submit a Nebraska Pregnancy Help Act Notification of Intended Tax Credit, Form 3152-IC to DOR.
Beginning January 1, 2025, the Forms 3152-IC will be processed in the order in which they are received until the annual limit is reached. DOR will notify the PHO within 30 days of receipt of a Form 3152-IC if tax credits are available. The taxpayer must remit the contribution to the approved PHO, after DOR has returned the verified Form 3152-IC to the PHO, no later than 60 days after notifying the approved PHO of their intended contribution.
If the taxpayer fails to make the contribution within 60 days and/or contributes less than the intended tax credit amount, the approved PHO must submit the Nebraska Pregnancy Help Act Notification Regarding Intended Contribution, Form 3152-X to DOR within 30 days. A taxpayer who fails to make the contribution in the required time will forfeit their tax credit reservation.
Nonrefundable Tax Credit
Any individual; corporate taxpayer; estate or trust; or partnership, limited liability company (LLC), or S corporation carrying on either a trade or business for which deductions would be allowed under IRC § 162 or a rental activity, and that makes one or more contributions to an approved PHO during the tax year is eligible for the nonrefundable tax credit. The nonrefundable tax credit equals the lesser of:
- The total amount of the contributions made to any approved PHO during the tax year; or
- 50% of the income tax liability of the taxpayer for such year.
Any unused credit may be carried forward for the next five years after the credit was first allowed. The tax credit cannot be carried back. A taxpayer may only claim a credit on the portion of the contribution that was not claimed as a charitable contribution on their federal return.
When the contribution is made by a partnership, limited liability company, or a subchapter S corporation, the credit must be attributed to each partner, member, or shareholder in the same proportion used to report the partnership’s, limited liability company’s, or S corporation’s income or loss.
Any credit not used by an estate or trust may be attributed to each beneficiary in the same proportion used to report the beneficiary’s income from the estate or trust.
Statutory Limitation
DOR will reserve tax credits based on the following statutory limitations for the State fiscal years:
- July 1, 2025, to June 30, 2026: $ 500,000
- July 1, 2026, to June 30, 2027, and each State fiscal year thereafter: $1,000,000
Tax credit notifications received on the day the statutory limit is exceeded will be prorated among all notifications received that day. Additionally, no more than 50% of the tax credits allowed for any State fiscal year can be for contributions to a single approved PHO.
Neb. Rev. Stat. §§ 77-3144 to 77-3153
Legislative Bill – LB 937 (2024)
Pregnancy Help Organizations approved as eligible charitable organizations
Form
Pregnancy Help Organization Certification, Form 3147
Contact Information
Julie McNaughton
Revenue Tax Specialist, Policy Section
Nebraska Department of Revenue
301 Centennial Mall South
PO Box 94818
Lincoln, NE 68509-4818
402-471-1445
julie.mcnaughton@nebraska.gov
