Senator Eliot Bostar introduced LB709 to establish a refundable Nebraska income-tax credit equal to 10% of the federal adoption tax credit.

Bostar told the Revenue Committee the federal credit for tax year 2024 is capped at $16,810; a 10% refundable state match would therefore be about $1,681 per adopted child. The senator said the state credit would be refundable so low-income families who lack federal tax liability could still receive support. He also recited federal income thresholds used for the federal credit (full credit phases out starting above $252,150 modified adjusted gross income and phases out by $292,150).

Proponents described both financial and human impacts. Chris Tonniges, president and CEO of Lutheran Family Services, said delivery costs for infant adoptions through his agency have risen from roughly $15,000 to more than $23,000 in the last five years, and that agencies often absorb losses to offer services. He told senators the state credit would “help remove another barrier of family formation” and could have generational impact for children placed into permanent homes.

Other supporters included John Chapo, who identified himself as an adoptive parent and CASA volunteer, and representatives of faith and family organizations. Tom Benzer of the Nebraska Catholic Conference and Nate Graz of the Nebraska Family Alliance both testified in support, calling adoption “life-affirming” and urging the committee to advance the measure.

Senators asked about the bill’s fiscal profile. Bostar said the fiscal note appeared modest and noted his estimate that the measure could be revenue-neutral or revenue-positive if the credit influenced a small number of additional adoptions; he said even if it did not pay for itself the policy would be worth pursuing on humanitarian grounds.

No committee vote was recorded in the hearing transcript. Supporters asked the committee to advance LB709 to reduce a financial barrier many families face when pursuing adoption; no opponents appeared in the hearing record.