All Roll Calls
Yes: 556 • No: 280
NebraskaLB647109th Legislature 1st and 2nd SessionslegislatureWALLET
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
Sponsored By: Revenue Committee
Signed by Governor
Revenue Committee
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Bill Overview
Analyzed Economic Effects
19 provisions identified: 11 benefits, 1 costs, 7 mixed.
Property tax break for trail easements
You can get a property tax exemption for the part of your land under a recorded, perpetual recreational trail easement. The easement must allow public access, connect to an existing or planned trail or key attraction, and be held by a city, county, state agency, or qualified land trust or nonprofit. Once approved, that portion stays tax‑free as long as the easement remains. The recorded easement must include Nebraska’s standard recording statement.
$5,000 credit for homes in blight
You can claim a $5,000 nonrefundable Nebraska income tax credit when you buy your main home in an area declared extremely blighted. The seller cannot be a family member. You claim it in the year of purchase and can carry it forward. If you sell or stop using it as your main home within five years, the credit is subject to recapture.
Nebraska tax break for Guard pay
Beginning January 1, 2025, Nebraska National Guard members can exclude 100% of qualifying Guard income from Nebraska taxable income. This includes drill pay, annual training, some technician pay, military schools, AGR/ADOS, and state active duty pay.
Refundable adoption tax credit in 2026
Beginning with tax years on or after January 1, 2026, Nebraska gives a refundable credit equal to 10% of your federal adoption expenses credit for that year. You must qualify for the federal credit to get this state credit.
State tax breaks for medical debt
Starting in 2024, if your medical debt was discharged under the Medical Debt Relief Act, you can subtract that amount from Nebraska income. You can also subtract gifts to the Medical Debt Relief Fund if you did not deduct them on your federal return. These subtractions lower your Nebraska taxable income.
More ways to use 529 savings
529 plan funds cover more costs: computers and internet (since 2022), registered apprenticeships (since 2021), and up to $10,000 total to pay qualified student loans for a beneficiary or sibling. Starting January 1, 2029, you can also use up to $10,000 per year for K–12 tuition, and program funds may pay elementary or secondary schools. Until January 1, 2029, K–12 withdrawals count as nonqualified. You can contribute up to the federal 529 limits, with no required yearly deposit or minimum balance. Employees can also subtract employer contributions to their Nebraska 529 (up to $10,000 per return, or $5,000 if married filing separately).
Entity-level tax option for S-corps
An S corporation can choose each year to pay Nebraska income tax at the entity level. The tax equals the state’s top individual rate times Nebraska net income, and the choice is made on the return by the due date. Shareholders get a refundable credit equal to their share of the entity tax, and some nonresidents do not need to file if that credit covers their tax. For elections filed from 2023 through 2025, shareholders have extra time to claim refunds through January 31, 2026 (or later under section 77-2793); no penalties or interest are charged, and no interest is paid on refunds. Electing S-corps follow corporate estimated tax rules, but no estimates were required for tax years before 2024. The Tax Commissioner has one year after a proper filing to propose a deficiency, and a notice to the entity binds all owners. Net operating losses from the entity-level tax cannot be carried forward while the election is in effect.
Limits on local property tax growth
Starting July 1, 2025, local governments cannot ask for more property tax than their allowed request authority, which is based on last year’s request with growth and inflation. The law updates which entities count under the rules and, for the first affected year, counts accumulated excess valuation as of July 1, 2025 in growth calculations. Subdivisions may carry forward unused authority up to 5% total and may convert unused restricted funds as of June 30, 2025 into request authority, capped at 5% of 2024 property taxes.
College savings ignored for benefit checks
When you apply for Nebraska TANF, SNAP, LIHEAP, or child care help, money in 529 and Coverdell accounts is not counted. Similar higher‑education savings accounts and accounts under section 77‑1402 are also excluded. Income from School Readiness Tax Credits is not counted either. This can help families qualify for or keep these benefits.
State school property tax relief credits
The state funds school property tax relief each year. Totals are $750 million (2024), $780 million (2025), $808 million (2026), $838 million (2027), $870 million (2028), and $902 million (2029). From 2030 on, the amount rises 3% each year. Counties pay credits in two equal parts by January 31 and April 1, and your parcel’s credit is based on its share of school taxes.
New income subtractions for some workers
Starting in 2025, qualifying employees can subtract the amount allowed under section 77-3111 from Nebraska income. Starting in 2026, people and entities can subtract amounts allowed by section 77-27,242. These subtractions lower Nebraska taxable income for those who qualify.
New Nebraska tax rules for bullion
Starting with 2025 taxes, you can subtract your net capital gains from selling gold or silver bullion from Nebraska taxable income. You must add back any net capital losses from those sales to Nebraska income. These rules do not apply to gains or losses that come from taxable retirement‑plan distributions that hold bullion.
Repeals of prior state statutes
The law repeals several listed Nebraska statutes across tax, municipal, and education-savings areas. These sections are removed when the act takes effect. The impact depends on what each repealed section covered.
Trail easement property tax exemption rules
The Department of Revenue must set rules to run the trail easement property tax exemption. Applications must include proof the easement is recorded and a certification that it provides public access and connectivity. These steps help eligible landowners get the exemption on the easement portion.
Use Nebraska 529 for K–12 tuition
Beginning January 1, 2029, the State Treasurer can sign agreements with K–12 schools to accept payments from Nebraska’s education savings plan for tuition. These agreements make it easier for parents to use their 529 to pay school bills. They do not change how the plan’s investments are managed.
City occupation tax transparency reports
When a city starts or raises an occupation tax after this law takes effect, it must publish a yearly report within 90 days after the fiscal year ends. The report lists each occupation tax, how much it raised, where the money goes, any dedicated uses, and when the tax ends. It must be posted online or available for public inspection.
Stricter steps for arena tax help
Each coapplicant for state help with an eligible sports arena must pass a resolution that authorizes financing or bonds. Temporary approvals expire if no building permit is issued within 24 months. Projects that miss these steps lose approval.
When parts of this law start
Parts of the law take effect on different dates. Sections 23, 24, 30, 35, 40–51, 52–55, 56–58, and 62 start October 1, 2025. Sections 1–6, 25–28, 29–31, and 63 start January 1, 2026. The act also takes effect immediately upon passage and approval due to the emergency clause.
How 529 plan fees are used
Nebraska created an expense fund for the education savings plan. Program fees pay plan operating costs and Meadowlark expenses. The Treasurer may transfer a pro rata share to the State Investment Officer for investment costs, with annual reporting. A $59,500 transfer to the Department of Revenue was made by September 1, 2020.
Sponsors & Cosponsors
Sponsor
Revenue Committee
Affiliation unavailable
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
legislature vote • 4/24/2026
Vote
Yes: 16 • No: 28 • Other: 5
legislature vote • 4/24/2026
Vote
Yes: 33 • No: 0 • Other: 16
legislature vote • 4/24/2026
Vote
Yes: 43 • No: 0 • Other: 6
legislature vote • 4/24/2026
Vote
Yes: 42 • No: 0 • Other: 7
legislature vote • 4/24/2026
Vote
Yes: 32 • No: 11 • Other: 6
legislature vote • 4/24/2026
Vote
Yes: 35 • No: 13 • Other: 1
legislature vote • 4/24/2026
Vote
Yes: 11 • No: 31 • Other: 7
legislature vote • 4/24/2026
Vote
Yes: 10 • No: 31 • Other: 8
legislature vote • 5/30/2025
Final Reading
Yes: 35 • No: 13
legislature vote • 5/30/2025
Select File
Yes: 11 • No: 33 • Other: 5
legislature vote • 5/30/2025
Vote
Yes: 35 • No: 13 • Other: 1
legislature vote • 5/30/2025
Vote
Yes: 11 • No: 31 • Other: 7
legislature vote • 5/30/2025
Vote
Yes: 10 • No: 31 • Other: 8
legislature vote • 5/9/2025
Vote
Yes: 33 • No: 0 • Other: 16
legislature vote • 5/9/2025
Vote
Yes: 16 • No: 28 • Other: 5
legislature vote • 5/9/2025
Vote
Yes: 28 • No: 6 • Other: 15
legislature vote • 4/29/2025
Vote
Yes: 32 • No: 11 • Other: 6
legislature vote • 4/29/2025
Vote
Yes: 39 • No: 0 • Other: 10
legislature vote • 4/29/2025
Vote
Yes: 42 • No: 0 • Other: 7
legislature vote • 4/29/2025
Vote
Yes: 42 • No: 0 • Other: 7
Actions Timeline
Approved by Governor on June 4, 2025
6/6/2025legislatureProvisions/portions of LB131 amended into LB647 by AM1203
6/6/2025legislatureProvisions/portions of LB242 amended into LB647 by AM1202
6/6/2025legislatureProvisions/portions of LB314 amended into LB647 by AM1360
6/6/2025legislatureProvisions/portions of LB401 amended into LB647 by AM1202
6/6/2025legislatureProvisions/portions of LB566 amended into LB647 by AM1107
6/6/2025legislatureProvisions/portions of LB628 amended into LB647 by AM1202
6/6/2025legislatureProvisions/portions of LB709 amended into LB647 by AM1202
6/6/2025legislatureCavanaugh, M. MO298 failed
5/30/2025legislatureCavanaugh, M. MO340 Reconsider the vote taken on MO298 filed
5/30/2025legislatureCavanaugh, M. MO340 failed
5/30/2025legislatureMotion to return to Select File withdrawn
5/30/2025legislatureCavanaugh, M. FA289 not considered
5/30/2025legislatureCavanaugh, M. AM1640 filed
5/30/2025legislaturevon Gillern MO343 Invoke cloture pursuant to Rule 7, Sec. 10 filed
5/30/2025legislaturevon Gillern MO343 prevailed
5/30/2025legislatureMotion to return to Select File failed
5/30/2025legislatureCavanaugh, M. AM1640 not considered
5/30/2025legislatureDispensing of reading at large approved
5/30/2025legislaturePassed on Final Reading with Emergency Clause 35-13*-1
5/30/2025legislaturePresident/Speaker signed
5/30/2025legislaturePresented to Governor on May 30, 2025
5/30/2025legislatureCavanaugh, M. MO298 Recommit to the Revenue Committee filed
5/27/2025legislatureCavanaugh, M. FA289 filed
5/27/2025legislaturePlaced on Final Reading with ST35
5/19/2025legislature
Bill Text
Introduced
6/6/2025
Enrolled / Slip Law
Final / Enacted