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.
Nebraska's LB 931 creates a refundable state income tax credit for residents who purchase health insurance through the federal Marketplace. It directly affects low-to-moderate-income Nebraskans with federal adjusted gross income of $29,000 or less who qualify for the federal premium tax credit. The credit equals 100% of the federal credit for incomes up to $22,000, decreasing by 10% for each $1,000 over that threshold (e.g., 90% for $23,000). This credit is refundable, meaning eligible residents receive cash payments even if their state tax liability is zero.
Nebraska's LB 1156 creates a tax credit program to encourage private investment in economically distressed communities. It allows taxpayers to claim a 50% nonrefundable income tax credit for cash contributions to qualifying organizations (like community development banks or innovation hubs) that fund projects in designated distressed areas. These funds support affordable commercial space, workforce training, site preparation, and small developer projects, with annual limits of $26.5 million for tax credits and $20 million for supplemental grants. The program targets small developers and underrepresented businesses in neighborhoods facing high unemployment and poverty, aiming to expand local economic opportunities without direct public funding.
LB 1131 creates a new tax credit program to support domestic violence and human trafficking service providers, distributing $5.7 million annually starting in 2027. This includes $480,000 for tribal programs, $300,000 for a statewide coalition, and $5.22 million based on population or service area size. The bill also eliminates existing tax exemptions for data centers, removing their personal property tax and sales tax exemptions. These changes directly affect nonprofit service providers and data center operators in Nebraska, with credits being refundable and transferable to other taxpayers.
This bill would impose a 27-cent fee on every retail delivery of taxable tangible personal property (like online purchases delivered by vehicle) in Nebraska. Sellers would collect the fee from customers and remit it to the state Department of Revenue, which would credit the funds to the Property Tax Credit Cash Fund. The fee does not apply to exempt items, tax-exempt entities, new businesses (in their first year), or businesses with less than $500,000 in prior-year retail sales. It becomes effective January 1, 2027.
This bill changes Nebraska's rules for listing taxable tangible personal property, such as business equipment or vehicles. It requires property owners to file annual forms with county assessors by May 1, using forms provided by the Tax Commissioner. The bill also clarifies that those seeking exemptions under the Nebraska Advantage Act or ImagiNE Nebraska Act must submit required documentation by the same deadline, or lose the exemption. Failure to file on time results in forfeiture of exemptions, even if taxable property is still listed under standard rules.
LB 1189 creates a pilot program to help low-income Nebraskans access the existing Earned Income Tax Credit (EITC) by increasing awareness and assistance. The Nebraska Department of Revenue will distribute $250,000 in grants to nonprofit organizations (like tax preparation services, legal aid, and health agencies) that serve low-income residents, funding outreach, education, and application help. Grants must be awarded by October 1, 2026, and the program requires an evaluation report by December 2027 detailing outreach efforts, participants served, and recommendations for future use. This directly affects eligible low-income Nebraskans who qualify for the EITC but may not claim it due to lack of awareness. The bill does not change the EITC itself but aims to improve access to the existing benefit.
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.
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 305 creates a Nebraska tax credit for licensed physicians who serve as unpaid preceptors in medical student training programs. Physicians participating in approved preceptorship programs can claim a $1,000 tax credit per clinical rotation (minimum 80 hours), capped at $5,000 annually per physician. The credit is nonrefundable and prioritizes physicians in rural counties (under 100,000 residents), with a total annual limit of $1 million across all applicants. This policy directly affects Nebraska physicians participating in medical education programs, aiming to support rural healthcare training by reducing their tax burden. The bill amends Nebraska’s tax code to include this new credit as a specific provision.
