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
Personalized for You
How does this bill affect your finances?
Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.
Bill Overview
Analyzed Economic Effects
27 provisions identified: 15 benefits, 2 costs, 10 mixed.
Homebuyer credit in blighted areas
You can claim a $5,000 Nebraska income tax credit when you buy a primary home in an area declared extremely blighted. The credit applies to purchases in tax years beginning on or after January 1, 2020 and before January 1, 2032. Only one credit is allowed per residence, and it can be recaptured if you sell or stop using it as your primary home within five years.
New deduction under section 77-27,242
Starting January 1, 2026, taxpayers who qualify under section 77‑27,242 can subtract the allowed amount from Nebraska taxable income. The subtraction equals the deduction you qualify for under that statute.
No Nebraska tax on Social Security
Nebraska phases in a subtraction for Social Security benefits included in federal income. For 2021 the subtraction is 5%, for 2022 it is 40%, for 2023 it is 60%, and for 2024 and later it is 100%. Earlier rules also let lower‑income filers subtract benefits under set income thresholds. For 2021–2023, taxpayers could choose the method that gave the larger reduction.
Refundable adoption tax credit
Beginning January 1, 2026, Nebraska gives adoptive parents a refundable income tax credit equal to 10% of the federal adoption expenses credit. You must qualify for the federal credit to claim the state credit. The credit can create a refund even if you owe no Nebraska tax.
Tax break for discharged medical debt
Beginning January 1, 2024, you can subtract discharged medical debt that was included in your federal income from your Nebraska taxable income. You can also subtract gifts to the Medical Debt Relief Fund that you did not deduct on your federal return. These subtractions lower your Nebraska tax bill.
Tax relief for AmeriCorps and teachers
If you received a Segal AmeriCorps Education Award and it was in your federal income, you can subtract it on your Nebraska return for years starting in 2021. If you received student loan repayment help under the Teach in Nebraska Today Act and it was in your federal income, you can subtract that amount on your Nebraska return.
Tax relief for military and public safety
Nebraska excludes 100% of military retirement pay from state income for tax years starting in 2022. Beginning January 1, 2025, Nebraska National Guard members can exclude Guard and certain technician pay included in federal income. Retired full‑time firefighters or certified law enforcement officers age 60+ with 20+ years of service can subtract health insurance premiums they paid if not deducted federally. Firefighters can also subtract cancer benefit payments included in federal income. Federal retirees in the Civil Service Retirement System can subtract those annuity payments starting in 2024.
Tax subtraction for qualifying employees
Beginning January 1, 2025, if you meet the law’s definition of a qualifying employee, you can subtract the amount allowed under section 77‑3111 from Nebraska taxable income. This subtraction lowers your Nebraska tax by your tax rate times that amount.
Property tax break for public trails
The law exempts the part of your land that has a recorded, permanent public trail easement. The easement must allow public access and link to a regional trail or major local attraction, and be held by a city, county, agency, accredited land trust, or qualifying nonprofit. To get the exemption, apply to the county assessor by December 31, include the property’s estimated value, proof of the recorded easement, and a certification from the easement holder. When recording the easement, a required statement must be filed and sent to the assessor. If you buy already‑exempt property between July 1 and levy date, you must reapply by November 15; the board finishes review by December 15. Once approved, the exemption continues without yearly reaffirmation as long as the easement stays eligible.
Pass‑through business tax election and credits
Partnerships and S corporations can elect to pay Nebraska income tax at the entity level. The entity pays tax at the top individual rate on Nebraska net income, and owners get a refundable credit for their share. Nonresident owners may skip filing if that credit fully pays their Nebraska tax. Partnerships cannot carry forward losses created by this election, and partners must add back Nebraska tax the entity deducted on the federal return. The election must be made on the return by the due date, estimated tax rules apply starting in 2024, and refund windows and review periods are defined. A special window lets entities elect for 2018–2022 with penalty waivers, but the state does not pay interest on those refunds.
School tax credits and clearer bills
The state provides $750 million for 2024 in school property tax relief, rising to $780 million in 2025 and up to $902 million in 2029, then 3% more each year after 2030. Counties keep 1% for costs and pay the rest as credits on your bill in two equal payments by January 31 and April 1. Your parcel’s credit equals your share of county school taxes. Tax bills must now show how much funds public safety services, county attorneys, public defenders, and bond principal and interest. Bills must also clearly show any past‑due taxes and interest, and assessors must record unreimbursed credits and installment amounts by November 20.
More ways to use college savings
You can use Nebraska education savings for registered apprenticeship costs paid on or after January 1, 2021. You can use them for computers and internet tied to college on or after January 1, 2022. The plan can also pay up to $10,000 total per person toward qualified student loans for a beneficiary or a sibling.
Use college savings for K-12 in 2029
Beginning January 1, 2029, you can use up to $10,000 per child per year from Nebraska education savings for K‑12 tuition. The Treasurer may contract with K‑12 schools and pay them on your behalf. Funds remain fully portable to any college now and, starting in 2029, to any elementary or secondary school. Until 2029, program funds cannot pay K‑12 costs. The act also updates program funds, fees, and transfers and repeals older sections to reorganize the plan.
What income counts for SNAP and TANF
Starting December 31, 2026, money you get for taking part in grant‑funded research counts when the state checks eligibility for TANF, LIHEAP, SNAP, and child care help. Before, up to $4,000 a year could be ignored. Income from School Readiness Tax Credits does not count as income or assets for those same programs.
Automatic child accounts with use limits
The Treasurer notifies parents and gives a chance to opt out. If you do not opt out, your child is automatically enrolled and an account opens. The state trust owns Meadowlark accounts; parents and children do not control them. Money can only pay in‑state college costs and must be used before age 30. Any money left at 30 returns to the Meadowlark Endowment Fund. K‑12 costs are not allowed from these accounts.
College savings and Meadowlark updates
The state runs matching scholarships for low‑income families (up to $1,000 per year per beneficiary) and pays employers 25% of approved college‑savings matches (capped at $2,000 per employee), subject to $250,000 annual program caps. The College Savings Incentive Cash Fund and Meadowlark Endowment Fund support these programs, and transfers and investment income are distributed each year to new Meadowlark accounts. Moving money between Nebraska‑sponsored plans is treated as an investment change, not a rollover. If you cancel, roll to an out‑of‑state plan, or take a nonqualified withdrawal, Nebraska recaptures prior state deductions. Starting January 1, 2029, when the trust pays a K‑12 school for qualified expenses, the school owns the payment when it is made.
New tax rules for gold and silver
Starting January 1, 2025, you can subtract net gains from selling gold or silver bullion from Nebraska taxable income, unless the gain is from a taxable retirement‑plan distribution. You must add back net losses from bullion sales to Nebraska taxable income, unless the loss came from a taxable retirement‑plan distribution.
New limits on local property-tax growth
Starting with fiscal years that begin July 1, 2025, local property‑tax request authority is based on last year’s approved request minus exceptions, plus a growth factor and an inflation factor. Growth now clearly counts new construction, annexations, changes in use, personal property increases, and certain redevelopment valuation changes. The inflation percentage uses a BEA state‑and‑local measure for the 12 months ending December 31. Voter votes to raise authority can appear on the next regular election or a called special election; petitions need 5% of voters and a simple majority to pass. Local governments may convert unused restricted funds into tax request authority, capped at 5% of 2024 taxes. Counties, cities, and villages are removed from some budget‑limit rules. Nameplate capacity tax receipts count as nonrestricted funds for five years after a renewable facility starts.
Newborn data shared for Meadowlark accounts
Beginning October 1, 2025, the Health and Human Services Department must send data to the State Treasurer by March 1 each year. The data covers children born in the prior calendar year and includes the child’s name, birthdate, and the parent or guardian’s residential address. The Treasurer uses it to run the Meadowlark Program and check which newborns qualify. The Education Savings Plan Expense Fund pays the cost of sending this information.
Clearer explanations in tax notices
When Nebraska issues a tax deficiency notice, the notice must include a written statement of the facts and reasons for the change. This gives you a clear explanation if the state says you owe more tax.
Past long‑term care savings deduction
For tax years before January 1, 2018, contributions to Nebraska’s long‑term care savings plan reduced Nebraska income. The limit was up to $2,000 for joint filers and $1,000 for other filers, to the extent not deducted on the federal return.
Cities must report occupation taxes yearly
When a city starts a new occupation tax or raises a rate, it must publish a yearly report within 90 days after its fiscal year ends. The report lists each tax, how much money it brought in, where the money went, any dedicated purpose, and any end date. The report must be posted on the city’s website or available for public inspection.
Some Nebraska add-backs raise taxes
If you claimed a franchise tax credit tied to financial‑institution taxes, you must add that credit amount back to Nebraska income. Nonqualified withdrawals from the Nebraska long‑term care savings plan (for tax years that began before 2018) must be added back to income if they were previously deducted and were not for allowed reasons.
Wider city vehicle fee area
For large cities, the city limits for vehicle registration now include the city’s extraterritorial zoning area. If your home or business and vehicle are in that area, you may have to register with the city and pay city vehicle fees. Usual exceptions still apply, like short‑term storage and some student situations.
State help for private sports complexes
The state may now help finance privately owned sports complexes. Funds can repay costs for public infrastructure, support leases for government use, promote events, or repay certain nonprofit debts with voter approval. If approval is based on a building permit, a permit must be issued within 24 months to keep the approval.
Tighter rules for public fund investing
Managers of retirement, Nebraska education savings, and ABLE assets cannot invest when the main goal is economic development or social purposes. Appointees and the state investment officer are fiduciaries for these funds and must follow the law’s fiduciary standard.
Where some tax admin fees go
Money received under the listed tax sections goes to the Department of Revenue Miscellaneous Receipts Fund. The Department uses it to pay for required publications and administrative costs. The Legislature may direct transfers of this money to the General Fund.
Sponsors & Cosponsors
Sponsor
Revenue Committee
Affiliation unavailable
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
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: 10 • No: 31 • Other: 8
legislature vote • 5/30/2025
Vote
Yes: 11 • No: 31 • Other: 7
legislature vote • 5/30/2025
Final Reading
Yes: 35 • No: 13
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: 42 • No: 0 • Other: 7
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 • Unknown
Vote
Yes: 43 • No: 0 • Other: 6
legislature vote • Unknown
Vote
Yes: 42 • No: 0 • Other: 7
legislature vote • Unknown
Vote
Yes: 32 • No: 11 • Other: 6
legislature vote • Unknown
Vote
Yes: 10 • No: 31 • Other: 8
legislature vote • Unknown
Vote
Yes: 11 • No: 31 • Other: 7
legislature vote • Unknown
Vote
Yes: 16 • No: 28 • Other: 5
legislature vote • Unknown
Vote
Yes: 35 • No: 13 • Other: 1
legislature vote • Unknown
Vote
Yes: 33 • No: 0 • Other: 16
Actions Timeline
Provisions/portions of LB709 amended into LB647 by AM1202
6/6/2025legislatureProvisions/portions of LB628 amended into LB647 by AM1202
6/6/2025legislatureProvisions/portions of LB566 amended into LB647 by AM1107
6/6/2025legislatureProvisions/portions of LB401 amended into LB647 by AM1202
6/6/2025legislatureProvisions/portions of LB314 amended into LB647 by AM1360
6/6/2025legislatureProvisions/portions of LB242 amended into LB647 by AM1202
6/6/2025legislatureProvisions/portions of LB131 amended into LB647 by AM1203
6/6/2025legislatureApproved by Governor on June 4, 2025
6/4/2025legislaturePresented to Governor on May 30, 2025
5/30/2025legislaturePresident/Speaker signed
5/30/2025legislaturePassed on Final Reading with Emergency Clause 35-13*-1
5/30/2025legislatureDispensing of reading at large approved
5/30/2025legislatureCavanaugh, M. AM1640 not considered
5/30/2025legislatureMotion to return to Select File failed
5/30/2025legislaturevon Gillern MO343 prevailed
5/30/2025legislaturevon Gillern MO343 Invoke cloture pursuant to Rule 7, Sec. 10 filed
5/30/2025legislatureCavanaugh, M. AM1640 filed
5/30/2025legislatureCavanaugh, M. FA289 not considered
5/30/2025legislatureMotion to return to Select File withdrawn
5/30/2025legislatureCavanaugh, M. MO340 failed
5/30/2025legislatureCavanaugh, M. MO340 Reconsider the vote taken on MO298 filed
5/30/2025legislatureCavanaugh, M. MO298 failed
5/30/2025legislatureCavanaugh, M. FA289 filed
5/27/2025legislatureCavanaugh, M. MO298 Recommit to the Revenue Committee filed
5/27/2025legislatureEnrollment and Review ST35 recorded
5/19/2025legislature
Bill Text
Introduced
1/22/2025
Enrolled / Slip Law
Final / Enacted
Related Bills
LB468, Change provisions relating to inheritance taxes, change certain fee and tax provisions, and eliminate a sales tax exemption relating to data centers
LB677, Change provisions of the Nebraska Medical Cannabis Regulation Act and provide for regulation of medical cannabis
LB170, Eliminate the sales tax exemptions for candy and soft drinks
LB646, Provide an exemption from brand inspections and change fees under the Livestock Brand Act
LB13, Require the Department of Health and Human Services to file a state plan amendment relating to child care
LB714, Change provisions relating to motor vehicle taxes and fees