Individuals with Intellectual and Developmental Disabilities Support Act for Direct Support Professionals, Employers of Individuals Receiving Services, and Agencies
In April 2024, Governor Jim Pillen signed into law LB 937, establishing tax credits for individuals and organizations supporting individuals with intellectual and developmental disabilities (IDD). These tax credits will benefit direct support professionals (DSPs), employers of DSPs, and employers of individuals receiving services through the Individuals with Intellectual and Developmental Disabilities Support Act. The credits take effect for taxable years beginning after January 1, 2025.
Nebraska Revised Statutes §§ 77-3154 to 77-3162 outline the eligibility and details of the tax credits:
- Employers of DSPs may claim a credit of $500 per DSP employed for at least six months during the taxable year and who worked a minimum of 500 hours.
- Direct support professionals are eligible for a $500 credit if they worked as DSPs for at least six months during the taxable year and met the 500 hour threshold.
- Employers of individuals receiving services through a Medicaid Home and Community-Based Services (HCBS) waiver may claim a $1,000 credit per employee who receives HCBS waiver services, has been employed for at least six months, and worked a minimum of 200 hours during the taxable year. This provision promotes employment opportunities for individuals with IDD, supporting their ability to lead lives grounded in the dignity of work.
“These tax credits are essential for supporting individuals with intellectual and developmental disabilities and the people and organizations that assist them,” said Tony Green, Director of the Division of Developmental Disabilities within the Department of Health and Human Services. “They recognize the vital contributions of DSPs, service providers, and employers in helping individuals with IDD live their best lives and pursue meaningful employment in their communities.”
The Individuals with Intellectual and Developmental Disabilities Support Actaddresses workforce challenges by incentivizing the recruitment and retention of DSPs, ensuring that individuals with IDD receive the necessary support to live safe, healthy, and independent lives. The tax credit program includes significant allocations:
- Up to $1,000,000 for fiscal year 2025-2026,
- $1,500,000 for fiscal year 2026-2027,
- $2,000,000 annually thereafter.
The passage of this legislation reflects the commitment of Governor Pillen, Senator Bostar, and Nebraska’s leaders to enhance access to resources for individuals with IDD while strengthening the workforce dedicated to their care.
More information about the Nebraska Caregiver Tax Credit Act can be found via the Nebraska Department of Revenue: https://revenue.nebraska.gov/businesses/child-care-tax-credit-act
MEDIA CONTACT
Erin Maier, (531) 893-1359 erin.maier@nebraska.gov