Budget & Taxes (Income Tax)

died · Nebraska · Legislature Apr 17, 2026

LB 872: Eliminate an income reduction for extraordinary dividends and certain capital gains for income tax purposes

This bill eliminates a tax reduction currently available for extraordinary dividends and certain capital gains when calculating Nebraska income tax. It directly affects Nebraska taxpayers who receive these specific types of investment income, ending the existing tax break. The change takes effect for taxable years beginning on or after January 1, 2026, under the federal tax code. The bill repeals two specific sections of Nebraska's tax code (77-2715.08 and 77-2715.09) that previously provided this reduction.

Topics ✓ Budget & TaxesSupports Budget & TaxesCloses tax loophole for investment income, increasing state revenue by eliminating tax breaks for extraordinary dividends/capital gains.95% confidence

Sub-Topics Business Taxes Income Tax Tax Incentives

Track

died · Nebraska · Legislature Apr 17, 2026

LB 1206: Exempt income received by certificated teachers, paraeducators, and paraprofessionals from state income taxation

LB 1206 would exempt the income of certificated teachers, paraeducators, and paraprofessionals from Nebraska's state income tax. The bill amends Nebraska's tax code to exclude this specific group's earnings from taxable income calculations. This change directly affects educators working in Nebraska public schools who hold these roles. The policy creates a targeted tax exemption without altering other tax provisions or requiring new administrative processes.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts educators' income from state tax, providing targeted tax relief for middle-income public school staff, aligning with support indicators for tax relief.95% confidence ✓ EducationSupports EducationExempts educators' income from state tax, providing direct financial benefit to teachers - a clear support measure for educator compensation and retention.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentExempts educators' income from state tax, increasing net wages without altering base pay. Directly enhances compensation for teachers and support staff.95% confidence

Sub-Topics Income Tax Tax Incentives Teachers

Track

died · Nebraska · Legislature Apr 17, 2026

LB 930: Provide an income tax deduction to retired firefighters and law enforcement officers for annual retirement benefits

LB 930 would amend Nebraska's tax code to allow retired firefighters and law enforcement officers to deduct their annual retirement benefits from their state taxable income. This change would directly reduce the state income tax burden for eligible retired public safety officers. The bill creates a specific tax deduction for retirement benefits received by these groups, adjusting how their income is calculated for state tax purposes. The policy change is a concrete modification to Nebraska's tax code for this targeted group of retirees.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax deduction for retired public safety officers, reducing state tax burden - direct tax relief aligning with SUPPORT indicators.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentProvides tax deduction for retired public safety officers' retirement benefits, reducing tax burden and enhancing post-employment financial security for workers.95% confidence

Sub-Topics Income Tax

Track

died · Nebraska · Legislature Apr 17, 2026

LB 1189: Create a pilot program to raise awareness of the earned income tax credit

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesAllocates $250k to nonprofits for EITC outreach, helping low-income residents access existing tax credit, providing tax relief and funding essential assistance.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentBill funds outreach to help low-income workers access existing Earned Income Tax Credit (EITC), strengthening financial support for workers through improved access to employment-related benefits.95% confidence

Sub-Topics Income Tax Tax Credits

Track

died · Nebraska · Legislature Apr 17, 2026

LB 115: Increase the income tax credit and change the qualification criteria under the Volunteer Emergency Responders Incentive Act

LB 115 increases the income tax credit for volunteer emergency responders in Nebraska from its previous amount to $1,250 per year. It directly affects volunteer firefighters, emergency responders, and rescue squad members who are certified as active for the prior year. The bill changes qualification rules by requiring departments to submit certified lists of eligible volunteers to the state by February 15 each year, and volunteers claim the credit on their state tax returns using certification documents. The amendment replaces the previous credit amount and procedures under the Volunteer Emergency Responders Incentive Act.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases tax credit for volunteer responders, providing direct tax relief to lower-income public safety volunteers.90% confidence

Sub-Topics Income Tax

Track

died · Nebraska · Legislature Feb 13, 2025

LB 331: Adopt the Nebraska EPIC Option Consumption Tax Act and terminate tax provisions

LB 331 proposed replacing Nebraska's existing income, property, sales, and other taxes with a single "consumption tax" on goods and services, effective by 2028. It would have terminated the state income tax, property tax, sales tax, inheritance tax, and related laws by December 2027, while defining taxable items like groceries and education services. The bill aimed to shift the tax burden from income and property to consumption, with specific rules for exemptions and tax calculations. However, the bill was withdrawn on February 13, 2025, and is no longer active. As a withdrawn proposal, it did not become law or affect any taxpayers.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill explicitly replaces multiple state taxes with a consumption tax, directly restructuring Nebraska's tax system and fiscal management as a core policy change.95% confidence

Sub-Topics Income Tax Sales Tax

Track

died · Nebraska · Legislature Apr 17, 2026

LB 710: Increase the earned income tax credit

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases state EITC rate from 10% to 20% for low/moderate-income residents, providing direct tax relief through enhanced refundable credit.95% confidence ✓ HousingSupports HousingIncreases EITC for low-income residents, boosting disposable income to improve housing affordability and stability for eligible households.85% confidence ✓ Labor & EmploymentSupports Labor & EmploymentIncreases Nebraska EITC rate from 10% to 20% for low-income workers, directly expanding financial benefits and raising disposable income for eligible residents.95% confidence

Sub-Topics Income Tax Tax Credits

Track

signed · Nebraska · Legislature Feb 26, 2025

LB 208: Change provisions relating to sales tax collection fees, confidentiality of sales tax information, the streamlined sales and use tax agreement, a sales tax database, and certain income tax credits

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesModifies sales tax filing requirements to streamline collection, enforces electronic payments with reconciliation, and imposes penalties for non-compliance, promoting fiscal accountability and efficient tax administration.92% confidence

Sub-Topics Income Tax Sales Tax

died · Nebraska · Legislature Apr 17, 2026

LB 509: Adopt the Opportunity Scholarships Act and provide for income tax credits

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates income tax credits for donors to fund scholarships, providing tax relief through fiscal policy for private education funding.95% confidence ✓ EducationSupports EducationCreates tax credits for private school scholarships targeting low-income families, expanding educational access for K-12 students through direct funding mechanism.95% confidence

Sub-Topics Income Tax Tax Credits School Choice Student Financial Aid

Track

died · Nebraska · Legislature Apr 17, 2026

LB 171: Change provisions relating to individual and corporate income tax rates

LB 171 adjusts Nebraska's individual and corporate income tax rates for 2025 and future years. It reduces the top individual income tax rate from 6.84% to 5.20% for taxable years beginning January 1, 2025, with further gradual reductions to 4.55% in 2026 and 3.99% after 2027. The bill also modifies corporate tax rates and establishes a new inflation adjustment mechanism using the Consumer Price Index for income tax brackets. This directly affects Nebraska residents and businesses filing state income taxes, altering their tax liability based on income levels. The changes apply to tax years starting in 2025, with specific rate schedules updated annually.

Topics ✓ Budget & TaxesSupports Budget & TaxesReduces top individual tax rate from 6.84% to 5.20% for 2025, providing tax relief per budget/tax indicators.95% confidence

Sub-Topics Business Taxes Income Tax

Track