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NebraskaLB208109th Legislature 1st and 2nd SessionslegislatureWALLET

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

Sponsored By: R. Brad von Gillern

Signed by Governor

Revenue Committee

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 4 benefits, 2 costs, 0 mixed.

Refundable child care credit for Nebraskans

Beginning January 1, 2024, Nebraska parents or legal guardians can get a refundable child care tax credit. You must be a Nebraska resident. You get $2,000 per child if your household income is $75,000 or less, or $1,000 per child if income is over $75,000 up to $150,000. No credit is allowed if income is over $150,000. A child counts if in licensed care, with an approved license‑exempt provider in the subsidy program, or if your household income is at or below 100% of the federal poverty level. The Department approves applications in the order received until a $15 million yearly cap is reached.

Food donation tax credit for stores and farms

Beginning January 1, 2025, grocery stores, restaurants, and qualifying Nebraska farmers can claim a state income tax credit for food donations. The credit equals 50% of the donation’s value, up to $2,500 per taxpayer per year. Donations must go to a food bank, pantry, or food rescue and be accepted. The credit is nonrefundable, with a three‑year carryforward. The state may approve up to $500,000 in credits each fiscal year (starting FY2025‑26) and prorates approvals when the daily limit is exceeded. Credits cannot be transferred; donors are ineligible if they employ people not authorized to work in the U.S., and any federal charitable deduction must be added back to Nebraska income before claiming this credit.

Model 1 sellers lose collection fee

Model 1 sellers no longer keep the 3% collection fee on the first $5,000 of sales tax they remit each month when a certified service provider is doing their tax functions and is paid under the streamlined agreement. That was up to $150 per month, or $1,800 per year, for sellers remitting at least $5,000 monthly.

Sales tax maps and safe harbors for sellers

The state maintains a ZIP‑code tax rate database. For nine‑digit ZIPs with multiple rates, it uses the lowest combined rate; for five‑digit ZIPs with multiple rates, it uses the highest. If a nine‑digit code is not available, sellers may use the five‑digit rate. If you used governing‑board‑approved software to get a nine‑digit ZIP, the law presumes you did your due diligence. Nebraska also adopts the streamlined sales and use tax agreement updated through December 31, 2024, and repeals older code sections to implement these updates.

Stronger privacy for sales tax records

More officials, including the State Treasurer and the Department of Administrative Services, are barred from disclosing retailer tax investigation information. Violations are Class I misdemeanors. Existing legal exceptions to sharing still apply.

Annual caps on some state tax credits

The Department can approve up to $1,000,000 in credits for fiscal year 2024‑25 and up to $1,500,000 in any later fiscal year for specified credits. When requests on a single day exceed the cap, approvals that day are prorated. No more credits are allowed once the annual cap is reached.

Sponsors & Cosponsors

Sponsor

  • R. Brad von Gillern

    Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 86 • No: 0

legislature vote • 2/21/2025

Final Reading

Yes: 47 • No: 0 • Other: 2

legislature vote • 1/31/2025

Vote

Yes: 39 • No: 0 • Other: 10

Actions Timeline

  1. Approved by Governor on February 25, 2025

    2/25/2025legislature

  2. Presented to Governor on February 21, 2025

    2/21/2025legislature

  3. President/Speaker signed

    2/21/2025legislature

  4. Passed on Final Reading 47-0-2

    2/21/2025legislature

  5. Dispensing of reading at large approved

    2/21/2025legislature

  6. Placed on Final Reading

    2/19/2025legislature

  7. Advanced to Enrollment and Review for Engrossment

    2/13/2025legislature

  8. Placed on Select File

    2/6/2025legislature

  9. Advanced to Enrollment and Review Initial

    1/31/2025legislature

  10. Placed on General File

    1/28/2025legislature

  11. Notice of hearing for January 24, 2025

    1/16/2025legislature

  12. Referred to Revenue Committee

    1/16/2025legislature

  13. Date of introduction

    1/14/2025legislature

Bill Text

  • Introduced

    1/14/2025

    PDF

  • Enrolled / Slip Law

    PDF

  • Final / Enacted

    PDF

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