# Nebraska LB647: 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 Nebraska LB647, 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, is a 109th Legislature 1st and 2nd Sessions legislature bill sponsored by Revenue Committee; status signed, last action 2025-06-06 (Provisions/portions of LB709 amended into LB647 by AM1202); PRIA reads it as touching household money (as of 2026-10-17). - Canonical: https://policyrisk.com/state-bill/NE-LB647-109 - As of: 2026-10-17 - Plain-text twin of the page above; the HTML and this file carry the same facts. ## Facts - Bill: Nebraska LB647 - State: Nebraska - Session: 109th Legislature 1st and 2nd Sessions - Title: 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 - Status: signed - Chamber: legislature - Introduced: 2025-01-22 - Last action: 2025-06-06, Provisions/portions of LB709 amended into LB647 by AM1202 - Sponsor: Revenue Committee - Cosponsors: 0 - Subjects: Revenue Committee - Touches household money: yes - Roll calls: 20 (556 yes, 280 no in all) - Economic provisions PRIA read: 27 ## Summary No summary available. ## Bill overview: provisions PRIA read - Homebuyer credit in blighted areas: benefit, high. 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… - New deduction under section 77-27,242: benefit, high. 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: benefit, high. 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 2021–202… - Refundable adoption tax credit: benefit, high. 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: benefit, high. 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: benefit, high. 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 am… - Tax relief for military and public safety: benefit, high. 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 officer… - Tax subtraction for qualifying employees: benefit, high. 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. - School tax credits and clearer bills: benefit, medium. 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’… - More ways to use college savings: benefit, medium. 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… - Use college savings for K-12 in 2029: benefit, medium. 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 sc… - Newborn data shared for Meadowlark accounts: benefit, low. 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… - Clearer explanations in tax notices: benefit, low. 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: benefit, low. 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: benefit, low. 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 websit… - Some Nebraska add-backs raise taxes: cost, low. 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 dedu… - Wider city vehicle fee area: cost, low. 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 stu… - Property tax break for public trails: mixed, high. 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, appl… - Pass‑through business tax election and credits: mixed, high. 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. Partn… - What income counts for SNAP and TANF: mixed, medium. 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 thos… - Automatic child accounts with use limits: mixed, medium. 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 3… - College savings and Meadowlark updates: mixed, medium. 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… - New tax rules for gold and silver: mixed, medium. 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 reti… - New limits on local property-tax growth: mixed, medium. 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… - State help for private sports complexes: mixed, low. 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 mon… - Tighter rules for public fund investing: mixed, low. 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: mixed, low. 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 and cosponsors - Sponsor: Revenue Committee ## Roll call votes | Date | Chamber | Motion | Result | Yes | No | Other | | --- | --- | --- | --- | --- | --- | --- | | 2025-05-30 | legislature | Select File | fail | 11 | 33 | 5 | | 2025-05-30 | legislature | Vote | fail | 35 | 13 | 1 | | 2025-05-30 | legislature | Vote | fail | 10 | 31 | 8 | | 2025-05-30 | legislature | Vote | fail | 11 | 31 | 7 | | 2025-05-30 | legislature | Final Reading | pass | 35 | 13 | | | 2025-05-09 | legislature | Vote | fail | 33 | 0 | 16 | | 2025-05-09 | legislature | Vote | fail | 16 | 28 | 5 | | 2025-05-09 | legislature | Vote | fail | 28 | 6 | 15 | | 2025-04-29 | legislature | Vote | fail | 42 | 0 | 7 | | 2025-04-29 | legislature | Vote | fail | 32 | 11 | 6 | | 2025-04-29 | legislature | Vote | fail | 39 | 0 | 10 | | 2025-04-29 | legislature | Vote | fail | 42 | 0 | 7 | | | legislature | Vote | fail | 43 | 0 | 6 | | | legislature | Vote | fail | 42 | 0 | 7 | | | legislature | Vote | fail | 32 | 11 | 6 | | | legislature | Vote | fail | 10 | 31 | 8 | | | legislature | Vote | fail | 11 | 31 | 7 | | | legislature | Vote | fail | 16 | 28 | 5 | | | legislature | Vote | fail | 35 | 13 | 1 | | | legislature | Vote | fail | 33 | 0 | 16 | ## Actions (57) - 2025-06-06: Provisions/portions of LB709 amended into LB647 by AM1202 (legislature) - 2025-06-06: Provisions/portions of LB628 amended into LB647 by AM1202 (legislature) - 2025-06-06: Provisions/portions of LB566 amended into LB647 by AM1107 (legislature) - 2025-06-06: Provisions/portions of LB401 amended into LB647 by AM1202 (legislature) - 2025-06-06: Provisions/portions of LB314 amended into LB647 by AM1360 (legislature) - 2025-06-06: Provisions/portions of LB242 amended into LB647 by AM1202 (legislature) - 2025-06-06: Provisions/portions of LB131 amended into LB647 by AM1203 (legislature) - 2025-06-04: Approved by Governor on June 4, 2025 (legislature) - 2025-05-30: Presented to Governor on May 30, 2025 (legislature) - 2025-05-30: President/Speaker signed (legislature) - 2025-05-30: Passed on Final Reading with Emergency Clause 35-13*-1 (legislature) - 2025-05-30: Dispensing of reading at large approved (legislature) - 2025-05-30: Cavanaugh, M. AM1640 not considered (legislature) - 2025-05-30: Motion to return to Select File failed (legislature) - 2025-05-30: von Gillern MO343 prevailed (legislature) - 2025-05-30: von Gillern MO343 Invoke cloture pursuant to Rule 7, Sec. 10 filed (legislature) - 2025-05-30: Cavanaugh, M. AM1640 filed (legislature) - 2025-05-30: Cavanaugh, M. FA289 not considered (legislature) - 2025-05-30: Motion to return to Select File withdrawn (legislature) - 2025-05-30: Cavanaugh, M. MO340 failed (legislature) - 2025-05-30: Cavanaugh, M. MO340 Reconsider the vote taken on MO298 filed (legislature) - 2025-05-30: Cavanaugh, M. MO298 failed (legislature) - 2025-05-27: Cavanaugh, M. FA289 filed (legislature) - 2025-05-27: Cavanaugh, M. MO298 Recommit to the Revenue Committee filed (legislature) - 2025-05-19: Enrollment and Review ST35 recorded (legislature) - 2025-05-19: Enrollment and Review ST35 filed (legislature) - 2025-05-19: Placed on Final Reading with ST35 (legislature) - 2025-05-09: Advanced to Enrollment and Review for Engrossment (legislature) - 2025-05-09: Dungan FA200 lost (legislature) - 2025-05-09: Dungan FA200 filed (legislature) - 2025-05-09: Sorrentino AM1311 withdrawn (legislature) - 2025-05-09: Raybould AM1255 withdrawn (legislature) - 2025-05-09: Sanders AM1360 adopted (legislature) - 2025-05-09: Sanders AM1360 filed (legislature) - 2025-05-09: Sanders FA80 withdrawn (legislature) - 2025-05-09: No objections to unanimous consent to withdraw and substitute amendment (legislature) - 2025-05-09: Enrollment and Review ER70 adopted (legislature) - 2025-05-08: Sorrentino AM1311 filed (legislature) - 2025-05-06: Enrollment and Review ER70 filed (legislature) - 2025-05-06: Placed on Select File with ER70 (legislature) - 2025-05-01: Raybould AM1255 filed (legislature) - 2025-04-29: Advanced to Enrollment and Review Initial (legislature) - 2025-04-29: Revenue AM1202 adopted (legislature) - 2025-04-29: Quick AM1107 adopted (legislature) - 2025-04-29: Revenue AM1203 adopted (legislature) - 2025-04-29: Revenue AM1202 pending (legislature) - 2025-04-29: Revenue AM1202 filed (legislature) - 2025-04-29: Revenue AM1203 filed (legislature) - 2025-04-29: Revenue AM994 divided (legislature) - 2025-04-28: Quick AM1107 to AM994 filed (legislature) - 2025-04-16: Revenue AM994 filed (legislature) - 2025-04-16: Placed on General File with AM994 (legislature) - 2025-04-02: Sanders FA80 filed (legislature) - 2025-03-13: Revenue priority bill (legislature) - 2025-03-12: Notice of hearing for March 26, 2025 (legislature) - 2025-01-24: Referred to Revenue Committee (legislature) - 2025-01-22: Date of introduction (legislature) ## Bill text - Introduced, 2025-01-22: [PDF](https://nebraskalegislature.gov/FloorDocs/109/PDF/Intro/LB647.pdf) - Enrolled / Slip Law: [PDF](https://nebraskalegislature.gov/FloorDocs/109/PDF/Slip/LB647.pdf) - Final / Enacted: [PDF](https://nebraskalegislature.gov/FloorDocs/109/PDF/Final/LB647.pdf) ## 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 (failed) - LB677: Change provisions of the Nebraska Medical Cannabis Regulation Act and provide for regulation of medical cannabis (failed) - LB170: Eliminate the sales tax exemptions for candy and soft drinks (failed) - LB646: Provide an exemption from brand inspections and change fees under the Livestock Brand Act (failed) - LB13: Require the Department of Health and Human Services to file a state plan amendment relating to child care (failed) - LB714: Change provisions relating to motor vehicle taxes and fees (failed) ## Sources - [Introduced (PDF)](https://nebraskalegislature.gov/FloorDocs/109/PDF/Intro/LB647.pdf) - [Enrolled / Slip Law (PDF)](https://nebraskalegislature.gov/FloorDocs/109/PDF/Slip/LB647.pdf) - [Final / Enacted (PDF)](https://nebraskalegislature.gov/FloorDocs/109/PDF/Final/LB647.pdf) ## Related - [LB468: Change provisions relating to inheritance taxes, change certain fee and tax pro…](https://policyrisk.com/state-bill/NE-LB468-109) - [LB677: Change provisions of the Nebraska Medical Cannabis Regulation Act and provide f…](https://policyrisk.com/state-bill/NE-LB677-109) - [LB170: Eliminate the sales tax exemptions for candy and soft drinks](https://policyrisk.com/state-bill/NE-LB170-109) - [LB646: Provide an exemption from brand inspections and change fees under the Livestock…](https://policyrisk.com/state-bill/NE-LB646-109) - [LB13: Require the Department of Health and Human Services to file a state plan amendm…](https://policyrisk.com/state-bill/NE-LB13-109) - [LB714: Change provisions relating to motor vehicle taxes and fees](https://policyrisk.com/state-bill/NE-LB714-109) - [Nebraska bills](https://policyrisk.com/states/nebraska/bills) - [Nebraska state hub](https://policyrisk.com/states/nebraska) - [All state legislation](https://policyrisk.com/state-bills) Source: PRIA, https://policyrisk.com/state-bill/NE-LB647-109 (as of 2026-10-17).