PRIA Logo™
NebraskaLB649109th Legislature 1st and 2nd Sessionslegislature

Adopt the Defense Efforts Workforce Act

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.

Free to download

Bill Overview

Analyzed Economic Effects

6 provisions identified: 1 benefits, 3 costs, 2 mixed.

5% tax credit for defense jobs

Beginning July 1, 2027, approved employers get a tax credit equal to 5% of pay to qualified Nebraska employees. The credit runs for the application year plus nine more years. You can use the credit to lower your state income tax withholding or payor tax. You can carry forward any unused credit. Using the credit does not change the tax withheld shown on employees’ pay forms.

Recapture and penalties for noncompliance

Beginning July 1, 2027, if you drop below the required job count or wage levels, you get no credit for those years. The state recaptures 10% of prior‑year credits for each failure year and disallows 10% of future credits for each prior failure. Recaptured amounts are due at once, become a lien, and accrue interest; penalties start 90 days after discovery. The Tax Commissioner may waive recapture for unavoidable events.

Annual and total caps on credits

Beginning July 1, 2027, total credits statewide are capped at $4 million each year and $40 million overall. If requests exceed the yearly cap, earlier approvals get priority.

Who qualifies for the defense credit

To qualify, you employ at least ten full‑time qualified workers in the base year and keep at least that many each year. You pay at least 150% of the statewide average hourly wage in the base year and at least 102% of the prior year after that. New qualified hires must pass electronic work‑eligibility checks before hire. A qualified employee works 30+ hours a week, works only on Nebraska military defense efforts, earns at least 150% of the statewide average, and is in a job not filled in Nebraska before July 1, 2025. You count as a taxpayer if you are subject to Nebraska sales and use tax and state withholding; political subdivisions and tax‑exempt 501(a) groups are excluded. The Department of Labor sets the statewide average hourly wage each year using QCEW data by October 1 before applications.

How to apply and program oversight

Beginning July 1, 2027, you file an application with names, related entities, a defense‑work description, an E‑Verify pledge, and base‑year employee details. You must pay a nonrefundable $5,000 fee to the Nebraska Incentives Fund. The Tax Commissioner mails an approval or denial within 30 days after a complete filing, unless both sides agree to extend. Your application and support are confidential, except the state may share your name, number of qualified employees, and approval status. The Department of Revenue files an annual report by October 31 and presents it by December 15, and also reports total credits used for each agreement every two years. The Tax Commissioner may issue rules to run the program.

Rules to transfer or share credits

Beginning July 1, 2027, pass‑through entities may distribute credits to owners like income. Credits can transfer only when the whole agreement is sold or leased, or in a qualifying tax‑code acquisition, and the buyer notifies the Tax Commissioner. The buyer gets unused and future credits and is liable for later recapture. After a taxpayer’s death, the personal representative may allocate credits only with the Tax Commissioner’s permission. The Tax Commissioner may share needed information with the buyer.

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 • 5/30/2025

Final Reading

Yes: 44 • No: 4

legislature vote • 4/30/2025

Vote

Yes: 40 • No: 4 • Other: 5

legislature vote • 4/30/2025

Vote

Yes: 35 • No: 1 • Other: 13

legislature vote • 4/16/2025

Vote

Yes: 36 • No: 2 • Other: 11

legislature vote • 4/16/2025

Vote

Yes: 34 • No: 0 • Other: 15

legislature vote • Unknown

Vote

Yes: 34 • No: 0 • Other: 15

legislature vote • Unknown

Vote

Yes: 35 • No: 1 • Other: 13

Actions Timeline

  1. Approved by Governor on June 4, 2025

    6/4/2025legislature

  2. Presented to Governor on May 30, 2025

    5/30/2025legislature

  3. President/Speaker signed

    5/30/2025legislature

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

    5/30/2025legislature

  5. Dispensing of reading at large approved

    5/30/2025legislature

  6. Placed on Final Reading

    5/6/2025legislature

  7. Advanced to Enrollment and Review for Engrossment

    4/30/2025legislature

  8. von Gillern AM1210 adopted

    4/30/2025legislature

  9. Enrollment and Review ER52 adopted

    4/30/2025legislature

  10. von Gillern AM1210 to AM933 filed

    4/29/2025legislature

  11. Enrollment and Review ER52 filed

    4/22/2025legislature

  12. Placed on Select File with ER52

    4/22/2025legislature

  13. Advanced to Enrollment and Review Initial

    4/16/2025legislature

  14. Sanders AM632 withdrawn

    4/16/2025legislature

  15. Revenue AM933 adopted

    4/16/2025legislature

  16. Revenue AM933 pending

    4/16/2025legislature

  17. Revenue AM933 pending

    4/16/2025legislature

  18. Revenue AM933 filed

    4/8/2025legislature

  19. Placed on General File with AM933

    4/8/2025legislature

  20. Sanders AM632 filed

    3/18/2025legislature

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

    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

    1/22/2025

    PDF

  • Enrolled / Slip Law

    PDF

  • Final / Enacted

    PDF

Related Bills

Back to State Legislation