Budget & Taxes (Income Tax)

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

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died · Nebraska · Legislature Apr 17, 2026

LB 151: Adopt the First-Time Homebuyers Savings Account Act and provide income tax adjustments

This bill amends Nebraska's tax code to adopt the First-Time Homebuyers Savings Account Act, though the provided text primarily details tax adjustments for educational savings programs (specifically referencing the Nebraska educational savings plan trust and "Achieving a Better Life Experience" accounts). It would allow taxpayers to subtract contributions made to these educational savings accounts from their federal adjusted gross income for state tax purposes. The bill directly affects Nebraska residents who contribute to these specific savings programs. The provisions are procedural tax adjustments, not new funding or direct homebuyer assistance. (Note: The bill title references homebuyers, but the text provided focuses on educational savings; no homebuyer-specific provisions appear in the truncated text.)

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides tax relief by allowing deductions for educational savings account contributions, reducing state tax burden for qualifying taxpayers.95% confidence

Sub-Topics Income Tax

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died · Nebraska · Legislature Apr 17, 2026

LB 107: Provide an income tax credit for renters and change provisions relating to a property tax credit

LB 107 creates a new refundable income tax credit for Nebraska renters with lower incomes. It directly affects renters earning $29,000 or less annually, providing a credit equal to 100% of a federal tax credit for those earning under $22,000, with the percentage decreasing by 10% for each $1,000 over $22,000. The credit is refundable, meaning eligible renters would receive the full credit amount even if it exceeds their state tax liability. The bill also modifies existing property tax credit provisions, though specific changes to those are not detailed in the provided text.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates refundable income tax credit for low-income renters ($29k+), reducing their tax burden per specific income thresholds.95% confidence ✓ HousingSupports HousingProvides refundable income tax credit to low-income renters ($29k cap), directly increasing housing affordability and funding tenant assistance.95% confidence

Sub-Topics Income Tax Tax Credits Property Taxes Tenant Rights

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died · Nebraska · Legislature Apr 17, 2026

LB 30: Provide for an income tax adjustment for income received from overtime compensation

Nebraska bill LB 30 would exclude income earned from overtime compensation from state taxable income. This change directly affects Nebraska residents who receive overtime pay, as it removes this specific income source from their taxable base. The bill amends Section 77-2716 of the state tax code to create a subtraction for overtime earnings, meaning workers would pay state income tax only on regular wages, not extra overtime pay. This is a concrete policy change to reduce the tax burden on overtime income, without altering other tax provisions.

Topics ✓ Budget & TaxesSupports Budget & TaxesExcludes overtime pay from taxable income, reducing tax burden for workers - direct tax relief aligning with support indicators.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentExcludes overtime pay from taxable income, increasing workers' disposable income without reducing benefits or protections.90% confidence

Sub-Topics Business Taxes Income Tax Labor Standards

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died · Nebraska · Legislature Apr 17, 2026

LB 643: 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.

Topics ✓ Budget & TaxesSupports Budget & TaxesCloses tax loophole for large rental property investors, increasing state tax revenue by prohibiting deductions on rental properties owned by entities with >30 units.95% confidence ✗ HousingOpposes HousingBill prohibits tax deductions for large-scale rental investors, potentially reducing housing supply and increasing costs, opposing affordable housing goals.85% confidence

Sub-Topics Income Tax Affordable Housing Property Taxes

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died · Nebraska · Legislature Jun 6, 2025

LB 566: Eliminate a sunset date relating to an income tax credit for the purchase of certain residential property

LB 566 removes an expiration date for Nebraska's refundable income tax credit for qualifying homebuyers. The bill specifically targets Section 77-2715.07(2)(b), which provides a credit equal to 100% of the federal credit for individuals with federal adjusted gross income under $29,000. This change makes the credit permanent for eligible low-to-moderate income residents purchasing residential property in Nebraska. The bill does not alter the credit amount, eligibility requirements, or other provisions of the tax credit.

Topics ✓ Budget & TaxesSupports Budget & TaxesExtends permanent tax credit for low-income homebuyers (AGI < $29k), providing tax relief to middle/lower income residents per tax credit policy.95% confidence ✓ HousingSupports HousingPermanently extends income tax credit for low-income homebuyers ($29k AGI), directly increasing affordable housing access for qualifying residents.95% confidence

Sub-Topics Income Tax Procurement

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died · Nebraska · Legislature Jun 6, 2025

LB 709: Adopt the Adoption Tax Credit Act

LB 709 creates a Nebraska income tax credit for residents who pay adoption expenses, directly affecting individuals or families adopting children who qualify for the federal adoption tax credit under 26 U.S.C. § 23. The bill establishes a refundable credit equal to 10% of the federal credit amount claimed in the same tax year, effective for 2026 tax returns. This harmonizes Nebraska tax law by adding adoption credit as a specific line item within existing credit provisions. The credit applies to all eligible Nebraska taxpayers regardless of federal credit limitations, making it refundable (meaning it can reduce tax liability below zero).

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates refundable tax credit reducing tax liability for adoption expenses, providing direct tax relief to qualifying families.95% confidence

Sub-Topics Income Tax Tax Credits

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signed · Nebraska · Legislature Jun 6, 2025

LB 647: Adopt the Recreational Trail Easement Property Tax Exemption Act and the Adoption Tax Credit Act and change provisions relating to budget limitations, property tax request authority, municipal occupation taxes, real property assessments, the Property Tax Request Act, income tax credits, taxation of business entities, the School District Property Tax Relief Act, and the Nebraska educational savings plan trust

LB 647 creates two new tax programs and modifies multiple tax codes. It establishes a property tax exemption for landowners who grant permanent public access rights for recreational trails (like walking or biking paths), provided the easement connects to existing trails and is held by eligible entities like cities or accredited nonprofits. It also creates a 10% refundable state tax credit for Nebraska taxpayers who qualify for the federal adoption credit, effective for 2026 tax years. The bill further updates property tax calculation rules, municipal tax provisions, school district relief funding, and education savings plan eligibility without creating new major programs.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates property tax exemption for recreational trails and adoption tax credit, providing targeted tax relief for landowners and adoptive families, aligning with tax relief indicators.90% confidence

Sub-Topics Income Tax Tax Incentives