Revenue

LB 710 increases Nebraska's earned income tax credit (EITC) for low- and moderate-income residents who qualify for the federal EITC. It raises the state refundable credit rate from 10% to 20% of the federal EITC amount for tax years beginning January 1, 2025, and adjusts income thresholds. The credit phases out for individuals with federal adjusted gross income above $22,000, reducing by 10% for each $1,000 earned over that amount. This change directly benefits eligible Nebraska residents who currently receive the federal EITC, providing them with additional state tax relief.

Nebraska's LB 234 redefines eligibility for "economic redevelopment areas" under the Urban Redevelopment Act. It sets specific criteria: an area qualifies if its unemployment rate is at least 150% of the state average and its poverty rate is 20% or higher, based on federal census data. The bill also includes adjacent census tracts meeting these standards. This change directly affects communities meeting these economic hardship thresholds, determining which areas can access redevelopment programs and funding. The bill amends existing law but does not create new programs or funding mechanisms.

LB 918 amends Nebraska's Sports Arena Facility Financing Assistance Act to clarify how state funds can be used for privately owned venues. It specifies that for privately owned concert venues, state assistance may only cover nearby parking infrastructure or public arts/cultural events. For privately owned sports complexes, funds can now support public infrastructure projects, government leases at fair market value, public sporting events, or debt repayment for the facility. The bill also limits promotional funding (arts or sports events) to a maximum of ten years per project and removes a prior cap on funding for large stadiums approved after July 2024. These changes directly affect applicants seeking state assistance for privately operated sports venues.

This bill changes Nebraska's tax on electronic nicotine delivery systems (e-cigarettes) based on their liquid capacity. Retailers and manufacturers will pay $0.05 per milliliter for devices holding 3ml or less, or 40% of the purchase price for larger devices. The tax applies when products enter the state for sale or are sold to consumers. This modifies existing tax rules under the Tobacco Products Tax Act without altering the overall tax structure.

LB 1165 amends Nebraska's Key Employer and Jobs Retention Act to adjust the wage retention credit to 5% of wages paid to retained employees earning at least the state average wage, with annual and total spending caps. It creates a new Department of Labor grant program to help employers retain or attract workers after a change in ownership and control, particularly for businesses meeting key employer criteria. The bill also modifies credit percentages under the ImagiNE Nebraska Act and adds capital improvement grants for eligible employers under the Site and Building Development Act. These changes apply to key employers with at least 1,000 equivalent employees in Nebraska during a base year, including those facing ownership transitions.