LB 1010 LB 1010

LEGISLATURE OF NEBRASKA
NINETY-NINTH LEGISLATURE
SECOND SESSION
LEGISLATIVE BILL 1010

Introduced by Connealy, 16
Read first time January 10, 2006
Committee: Revenue

A BILL
1   FOR AN ACT relating to revenue and taxation; to amend section
2   77-27,230, 77-27,231, 77-27,232, and 77-27,233, Revised
3   Statutes Supplement, 2005; to permit a taxpayer to
4   receive both a charitable deduction and a charitable
5   endowment tax credit; to reduce the amount of the credit
6   allowed; to provice an operative date; and to repeal the
7   original sections.
8   Be it enacted by the people of the State of Nebraska,
-1-

LB 1010 LB 1010
1   Section 1. Section 77-27,230, Revised Statutes
2   Supplement, 2005, is amended to read:
3   77-27,230 (1)  A resident individual shall be allowed a
4   credit against the income tax due under the Nebraska Revenue Act of
5   1967 in an amount equal to thirty fifteen percent of the present
6   value of the aggregate amount of the charitable gift portion of
7   a planned gift made by the individual during the tax year to any
8   qualified endowment.  The maximum credit per individual per tax year
9   is ten five thousand dollars.  The credit allowed under this section
10  shall not exceed the taxpayer's income tax liability. 
11  (2)  The credit allowed under this section cannot
12  be claimed to the extent that the taxpayer has included the
13  contribution upon which the amount of the credit was computed as a
14  deduction on his or her state income tax return.
15  (3)  (2)  The credit cannot be carried back or forward, and
16  the credit shall be applied to the tax year in which the planned
17  gift is made.
18  Sec. 2.  Section 77-27,231, Revised Statutes Supplement,
19  2005, is amended to read:
20  77-27,231  A contribution to a qualified endowment by
21  a small business corporation, partnership, or limited liability
22  company carrying on any trade or business for which deductions
23  would be allowed under section 162 of the Internal Revenue Code
24  or carrying on any rental activity qualifies for the credit
25  provided in section 77-27,230.  The credit shall be attributed to
-2-

LB 1010 LB 1010
1    shareholders, partners, or members in the same proportion used
2    to report the corporation's, partnership's, or limited liability
3    company's income or loss for income tax purposes.  The maximum
4    credit per shareholder, partner, or member per tax year is ten five
5    thousand dollars.  , subject to the limitation in subsection (2) of
6    section 77-27,230.  The credit allowed under this section may not
7    exceed the taxpayer's income tax liability.  The credit cannot be
8    carried back or forward, and the credit shall be applied to the tax
9    year in which the contribution is made.
10  Sec. 3.  Section 77-27,232, Revised Statutes Supplement,
11  2005, is amended to read:
12  77-27,232  A corporation shall be allowed a credit against
13  the income tax due under the Nebraska Revenue Act of 1967 in an
14  amount equal to twenty ten percent of any contribution made by the
15  corporation to a qualified endowment.  The maximum credit that may
16  be claimed to a corporation for contributions made per tax year
17  under this section is ten five thousand dollars.  The credit allowed
18  under this seciton shall not exceed the taxpayer's income tax
19  liability.  The credit allowed under this seciton cannot be claimed
20  to the extent that the taxpayer has included the contribution upon
21  which the amount of the credit was computed as a deduction on
22  its state income tax return.  The credit cannot be carried back or
23  forward, and the credit shall be applied to the tax year in which
24  the contribution is made.
25  Sec. 4.  Section 77-27,233, Revised Statutes Supplment,
-3-

LB 1010 LB 1010
1    2005, is amended to read:
2    77-27,233  A contribution to a qualified endowment by a
3    resident estate or trust qualifies for the credit provided in
4    section 77-27,230 if the contribution is a planned gift or in
5    section 77-27,232 if the contribution is an outright gift to a
6    qualified endowment.  Any credit not used by the estate or trust
7    may be attributed to each beneficiary of the estate or trust in
8    the same proportion used to report the beneficiary's income from
9    the estate or trust for Nebraska income tax purposes.  The maximum
10  credit per beneficiary is ten five thousand dollars, subject to the
11  limitation in subsection (2) of section 77-27,230, and the credit
12  can only be claimed in the tax year in which the contribution is
13  made.  The credit cannot be carried back or forward.
14  Sec. 5.  This act becomes operative for taxable years
15  beginning or deemed to begin on or after January 1, 2006, under the
16  Internal Revenue Code of 1986, as amended.
17  Sec. 6.  Original section 77-27,230, 77-27,231
18  77-27, 232, and 77-27,233, Revised Statutes Supplement, 2005, are
19  repealed.
-4-
Return to Home