Prohibit income tax deductions relating to interest or taxes paid on or maintenance of certain properties and provide exemptions to prohibited deductions

LB 643 prohibits Nebraska income tax deductions for interest, property taxes, or maintenance on single-family rental properties owned by individuals or entities holding more than 30 such properties as of January 1, 2026. It directly affects large-scale residential property investors, excluding primary residences, qualified nonprofit organizations (including community land trusts and affordable housing groups), and owners who sold at least 10% of their properties to residents or 5% to first-time homebuyers. Owners can appeal if they offered properties for sale at fair market value for 90 days without offers and were unable to sell. The bill takes effect for taxable years beginning January 1, 2026.