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NebraskaLB649109th Legislature 1st and 2nd SessionslegislatureWALLET

Adopt the Defense Efforts Workforce Act

Sponsored By: Revenue Committee

Signed by Governor

Revenue Committee

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 1 benefits, 1 costs, 3 mixed.

5% wage credit for defense employers

This law gives a wage tax credit equal to 5% of pay for qualified employees working in Nebraska. The credit is available each year for up to 10 years (the application year plus nine more). You can use the credit to reduce your state income tax withholding or payor tax. Using the credit does not change what you report to employees as tax withheld or their refundable credits. Any unused credit carries forward to future withholding.

Credit capped at $4M yearly, $40M total

Total credits statewide are capped at $4 million each year and $40 million in total. If claims exceed the yearly cap, earlier-approved employers get paid first. Later approvals may get a partial credit or none for that year.

Defense credit transfers and clawbacks

Credits are generally not for sale. Pass‑through entities can distribute credits to owners, and a full transfer is allowed with a business sale, lease, or qualifying asset deal; the buyer gets unused and future credits and may be liable for recapture. If you miss required headcount or wage levels, credits for those years are disallowed and prior credits are clawed back at one‑tenth per year of noncompliance. Recaptured amounts are treated as tax underpayments with interest and a lien; penalties start after 90 days. The Tax Commissioner may waive clawbacks for unavoidable events.

Apply with $5,000 fee, details private

To apply, you file company details, show defense work, list base‑year qualified employees and wages, and pay a nonrefundable $5,000 fee. The Tax Commissioner decides within 30 days unless both sides agree to more time. Your company name, number of qualified employees, and approval status are public, but other application materials stay confidential. The Tax Commissioner issues rules to run the program. The law is operative July 1, 2027.

Who qualifies for the defense credit

A qualified employee is full-time (30+ hours a week in any month), works only on defense support in Nebraska, is paid at least 150% of the statewide average hourly wage, and is in a job not filled in Nebraska before July 1, 2025. A qualified employer has at least 10 such employees in the base year and keeps at least that many each year. Employers must pay at least 150% of the statewide average wage in the base year and at least 102% of the prior year wage each year after. Employers must also verify work eligibility for all new qualified employees.

Sponsors & Cosponsors

Sponsor

  • Revenue Committee

    Affiliation unavailable

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 258 • No: 12

legislature vote • 4/24/2026

Vote

Yes: 34 • No: 0 • Other: 15

legislature vote • 4/24/2026

Vote

Yes: 35 • No: 1 • Other: 13

legislature vote • 5/30/2025

Final Reading

Yes: 44 • No: 4

legislature vote • 4/30/2025

Vote

Yes: 35 • No: 1 • Other: 13

legislature vote • 4/30/2025

Vote

Yes: 40 • No: 4 • Other: 5

legislature vote • 4/16/2025

Vote

Yes: 36 • No: 2 • Other: 11

legislature vote • 4/16/2025

Vote

Yes: 34 • No: 0 • Other: 15

Actions Timeline

  1. Approved by Governor on June 4, 2025

    6/6/2025legislature

  2. Dispensing of reading at large approved

    5/30/2025legislature

  3. Passed on Final Reading 44-4*-1

    5/30/2025legislature

  4. President/Speaker signed

    5/30/2025legislature

  5. Presented to Governor on May 30, 2025

    5/30/2025legislature

  6. Placed on Final Reading

    5/6/2025legislature

  7. Enrollment and Review ER52 adopted

    4/30/2025legislature

  8. von Gillern AM1210 adopted

    4/30/2025legislature

  9. Advanced to Enrollment and Review for Engrossment

    4/30/2025legislature

  10. von Gillern AM1210 to AM933 filed

    4/29/2025legislature

  11. Placed on Select File with ER52

    4/22/2025legislature

  12. Enrollment and Review ER52 filed

    4/22/2025legislature

  13. Revenue AM933 pending

    4/16/2025legislature

  14. Revenue AM933 pending

    4/16/2025legislature

  15. Revenue AM933 adopted

    4/16/2025legislature

  16. Sanders AM632 withdrawn

    4/16/2025legislature

  17. Advanced to Enrollment and Review Initial

    4/16/2025legislature

  18. Placed on General File with AM933

    4/8/2025legislature

  19. Revenue AM933 filed

    4/8/2025legislature

  20. Notice of hearing for March 26, 2025 on AM632

    3/18/2025legislature

  21. Sanders AM632 filed

    3/18/2025legislature

  22. Sanders priority bill

    3/13/2025legislature

  23. Notice of hearing for March 26, 2025

    3/12/2025legislature

  24. Referred to Revenue Committee

    1/24/2025legislature

  25. Date of introduction

    1/22/2025legislature

Bill Text

  • Introduced

    6/6/2025

    PDF

  • Enrolled / Slip Law

    PDF

  • Final / Enacted

    PDF

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