LB 1189

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                          LEGISLATURE OF NEBRASKA
                       ONE HUNDRED NINTH LEGISLATURE
                              SECOND SESSION
                  LEGISLATIVE BILL 1189
 Introduced by Conrad, 46.
 Read first time January 21, 2026
 Committee: Revenue
1 A BILL FOR AN ACT relating to revenue and taxation; to create a pilot
2program administered by the Department of Revenue to raise awareness
3of the earned income tax credit; to provide an operative date; and
4to declare an emergency.
5    Be it enacted by the people of the State of Nebraska,
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1Section 1.       (1)(a) The You Earned It Pilot Program is created to
2 raise      awareness     of   the      earned    income     tax      credit    among    low-income
3 Nebraskans. The purpose of the program is to increase access to and
4 utilization      of     the   earned    income       tax   credit    by    eligible    individuals
5     through grants to qualifying nonprofit organizations. The program shall
6     be administered by the Department of Revenue.
7(b) It is the intent of the Legislature to appropriate two hundred
8 fifty thousand dollars from the General Fund for fiscal year 2026-27 to
9 the department for carrying out the pilot program.
10(2)(a)    The    Department       of    Revenue      shall        establish    application
11 procedures, eligibility criteria, and reporting requirements for grant
12     recipients. Grant funds may be used for outreach, education, assistance,
13     and related activities that help eligible individuals understand, claim,
14     and receive the earned income tax credit. The department shall ensure
15 that grants are distributed in a manner that promotes geographic and
16 demographic equity across the state.
17(b) Grants awarded under the You Earned It Pilot Program may be made
18  to nonprofit organizations that serve low-income Nebraskans, including,
19     but not limited to:
20(i) Nonprofit tax preparation services;
21(ii) Legal services organizations;
22(iii) Health and human services organizations; and
23(iv) Other nonprofit agencies that regularly work with low-income
24 Nebraskans       and    demonstrate     the     capacity     to     promote   awareness    of   and
25 access to the earned income tax credit.
26(c) Grants shall be awarded to eligible nonprofit organizations no
27 later than October 1, 2026.
28(3) The Department of Revenue shall evaluate the success of the
29 program and electronically submit a report of such evaluation to the
30 Clerk of the Legislature on or before December 15, 2027, containing the
31  following information:
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1(a) The number and type of grants awarded;
2(b) The geographic distribution of grant recipients;
3(c) Outreach activities conducted;
4(d) The estimated number of individuals assisted; and
5(e) Findings and recommendations regarding the effectiveness of the
6     program and the advisability of continuation or expansion.
7Sec. 2.   This act becomes operative on July 1, 2026.
8Sec. 3.    Since an emergency exists, this act takes effect when
9     passed and approved according to law.
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