LB 164, the Urban Development Incentive Act, creates a state grant program to support small and emerging developers in economically distressed areas of Nebraska. The bill provides funding for affordable commercial space development, rehabilitation, and sustainability features, with grants covering up to 20% of project costs (max $3.5 million per project) and specific categories for financing help, job training, and green building certification. It directly affects small developers (under 50 employees, <$5M revenue) working in areas meeting federal census criteria for high unemployment (≥150% state average) and poverty (≥20%). The program requires community engagement documentation and annual reporting to the Legislature on grant usage and job creation.
LB 427 would create state-funded savings accounts for Nebraska students in kindergarten through 12th grade attending approved public, private, denominational, or parochial schools. Starting July 1, 2026, each eligible student would receive $1,500 annually from a new "Student Savings Account Support Fund" to cover qualified expenses like tuition, textbooks, and educational therapies. Funds cannot be used for transportation, food, clothing, or basic supplies. Accounts follow students if they switch schools within Nebraska and terminate upon graduation or loss of eligibility.
Nebraska's LB 424 limits how much property taxes can increase annually for homeowners. It caps yearly tax bill increases at the lesser of the inflation rate (based on the U.S. Consumer Price Index) or 3%, preventing rapid spikes. This directly affects property owners whose annual tax bills would otherwise rise faster than this limit, unless the increase results from home improvements. The bill applies to all real property tax bills issued in Nebraska.
LB 208 modifies Nebraska's sales tax filing requirements based on annual tax liability: businesses with less than $900 yearly tax obligation file annually, those with $900-$3,000 file quarterly, and those over $3,000 file monthly. It adds rules for electronic payments via the streamlined sales tax agreement, requiring annual reconciliation and imposing a 50% penalty if payments miss the target by over 10%. The bill also updates confidentiality protections for sales tax data, adjusts annual limits for certain income tax credits, and clarifies filing rules for seasonal retailers and combined returns. These changes primarily affect Nebraska retailers and businesses collecting sales tax, streamlining compliance with state and multi-state tax agreements.
LB 479 changes how Nebraska distributes sales and use tax revenue from specific vehicle sales. It directs all tax money from motorboats, personal watercraft, ATVs, and utility vehicles to the Game and Parks Commission fund (with transfers to emergency medical services), and adjusts allocations for longer-term vehicle rentals and general sales taxes. Starting October 1, 2025, 85% of general sales tax revenue from most transactions will go to the Highway Trust Fund and 15% to the Highway Allocation Fund. The bill modifies existing tax distribution rules without creating new taxes, affecting state funds managing transportation, parks, and emergency services. It repeals the current funding allocation section and becomes effective October 1, 2025.
LB 255 redirects $1 million annually from Nebraska's Opioid Treatment Infrastructure Cash Fund to support problem-solving courts. It specifically authorizes funding for medication-assisted treatment (using FDA-approved medication combined with counseling and therapy) for individuals with substance use disorders participating in these courts. The bill affects drug, veterans, mental health, and other problem-solving courts across judicial districts, requiring the State Court Administrator to track outcomes and report on recidivism and program access. This policy change explicitly ties fund usage to court-based treatment programs, as amended in sections 24-1302 and 71-2492 of Nebraska law.
LB 509, the Opportunity Scholarships Act, creates tax credits for Nebraska individuals and businesses that donate to nonprofit organizations providing scholarships. These scholarships help low-income families pay for private school tuition at qualifying non-profit schools (meeting accreditation and safety standards). Eligible students must have household income at or below 213% of the federal poverty level, with priority given to those previously receiving scholarships or in specific hardship situations. The bill allows donors to claim tax credits equal to their contributions, directing funds through certified scholarship-granting organizations to support enrollment at participating private schools.
LB 292A is a funding bill that appropriates $250,000 from the Middle Income Workforce Housing Investment Fund for fiscal year 2025-26 to the Department of Economic Development’s Program 601. This funding specifically supports the implementation of Legislative Bill 292 (the main bill it references), with no funds allowed for state employee salaries or per diems. It directly affects the Department of Economic Development’s housing program and the state’s housing investment fund.
Nebraska's LB 714 changes how motor vehicle taxes are calculated and distributed. It adjusts tax rates based on a vehicle's age (e.g., 100% for new cars, down to 0% for 14+ year vehicles) and value (e.g., $25 for cars under $4,000, up to $1,700 for $90,000+ vehicles). The bill modifies fund allocation, directing 37.6% of tax proceeds to local schools, 22.2% to cities/villages in metro counties, and the remainder to counties. This affects all Nebraska vehicle owners who pay registration taxes, with changes impacting how local governments receive funding for schools, roads, and services.
LB 254 directs Nebraska's legislature to transfer $25 million from the General Fund for fiscal year 2025-26 and an additional $25 million for 2026-27 to the Rural Workforce Housing Investment Fund. This funding is intended to provide grants for workforce housing projects under the Rural Workforce Housing Investment Act. The bill directly affects rural communities and workers by supporting affordable housing initiatives through state funding. It establishes a legislative intent to allocate these specific sums, though the actual disbursement would require subsequent implementation.
