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.
LB 974 would impose a supplemental 9.5% excise tax on individual income above $1 million for single filers or $2 million for married couples filing jointly, calculated after subtracting existing income tax rates. It creates the "Tax Equity Cash Fund" to collect this new tax revenue, which the Department of Revenue would manage. Funds in the account may only be used for administrative costs related to the tax or transferred to three specific state funds (General Fund, Education Future Fund, or Property Tax Credit Cash Fund), not for new programs. This bill directly affects high-income Nebraskans earning above the thresholds, with no specified new spending beyond fund transfers.
Nebraska's LB 802 lowers individual income tax rates for higher earners starting in 2026. It reduces the top marginal tax rate (rate three) from 5.01% to 4.55% and the highest rate (rate four) from 6.84% to 4.55% for tax years beginning January 1, 2026, through 2027. These changes directly affect Nebraska residents filing individual income tax returns who earn above $28,999 as single filers or $57,999 as married couples filing jointly. The bill modifies existing tax brackets without altering the income thresholds for each bracket.
This bill adjusts Nebraska's income tax calculation to align with specific federal tax treatment. It modifies how taxpayers account for certain federal deductions, such as interest on U.S. government bonds or Nebraska municipal bonds, by either subtracting or adding these amounts to Nebraska taxable income. The changes directly affect Nebraska taxpayers who claim federal deductions that would otherwise be subject to state tax. Key provisions include subtracting federal-exempt interest/dividends from Nebraska taxable income and adjusting for state tax refunds included in federal income. The bill ensures Nebraska's tax code mirrors federal rules for these specific deductions.
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 938 creates a state tax-advantaged savings program to help first-time homebuyers. It allows individuals to contribute up to $5,000 annually (or $10,000 for joint filers) to designated savings accounts, reducing their state taxable income. Contributions can be used for eligible home purchase costs like down payments, closing fees, or construction financing for a primary residence in Nebraska. The program limits lifetime contributions to $25,000 per individual ($50,000 for joint filers) and requires account holders to designate a qualified beneficiary (the homebuyer) by April 15 each year. This directly affects first-time homebuyers who meet the definition: individuals without prior primary residence ownership or those divorced and not on title for 3+ years.
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 846 amends Nebraska's individual income tax code to change how personal exemptions and standard deductions are calculated. It replaces the previous inflation-adjusted personal exemption credit with a new method using the Consumer Price Index from August 2017 forward, and updates standard deduction amounts for different filing statuses (e.g., single filers increase from $3,000 to $4,750). The bill affects all Nebraska residents filing individual income tax returns who claim the standard deduction instead of itemizing deductions. Key changes include updated dollar amounts for standard deductions and a revised formula for calculating the personal exemption credit based on federal filing status. These provisions apply to tax years beginning in 2018 and beyond.
Nebraska's LB 1110 modifies tax collection and revenue rules. It requires taxpayers to pay a $25 fee or 10% of unpaid tax liability (whichever is greater) for delinquent income taxes and related notices. The bill also allows the Department of Revenue to share confidential information with the Department of Health and Human Services for administrative purposes, and changes how gambling tax revenue is distributed (40% to the Charitable Gaming Division, 60% to the General Fund). These changes affect taxpayers, the Department of Revenue, and state gambling programs, with fees subject to annual inflation adjustments starting in 2027.
Nebraska's LB 851 modifies the state's income tax calculation for S-corporations and limited liability companies (LLCs). It specifically excludes income or losses from these entities that are not derived from Nebraska sources when calculating taxable income for tax years before 2026. This change adjusts federal adjusted gross income by removing non-Nebraska-sourced earnings from S-corporations or LLCs, affecting business owners who earn income outside Nebraska but operate entities structured as S-corps or LLCs under Nebraska law. The provision applies to tax returns filed for years ending before January 1, 2026.
