Change income tax provisions relating to certain income or loss received from S-corporations and limited liability companies

Nebraska's LB 851 modifies the state's income tax calculation for S-corporations and limited liability companies (LLCs). It specifically excludes income or losses from these entities that are not derived from Nebraska sources when calculating taxable income for tax years before 2026. This change adjusts federal adjusted gross income by removing non-Nebraska-sourced earnings from S-corporations or LLCs, affecting business owners who earn income outside Nebraska but operate entities structured as S-corps or LLCs under Nebraska law. The provision applies to tax returns filed for years ending before January 1, 2026.