All Roll Calls
Yes: 580 • No: 150
NebraskaLB650109th Legislature 1st and 2nd SessionslegislatureWALLET
Adopt the Community Development Assistance Act and change provisions relating to land banks, property tax exemptions, real property sold for delinquent taxes, sales tax provisions, and certain tax credits
Sponsored By: R. Brad von Gillern
Signed by Governor
Revenue Committee
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Bill Overview
Analyzed Economic Effects
22 provisions identified: 12 benefits, 2 costs, 8 mixed.
Property tax break for disabled veteran mobile homes
A mobile home you own and live in is exempt from property tax if you are a veteran with a VA‑recognized service‑connected disability or blindness. You must have an honorable or general (under honorable conditions) discharge.
Clean water home filter credit
For tax years starting Jan. 1, 2024, you can claim a one‑time refundable credit for installing a reverse osmosis system at your main home. The credit equals 50% of the install cost, up to $1,000. Your home’s drinking water must exceed stated limits for nitrate nitrogen, PFOA/PFOS, uranium, or a PFAS Hazard Index. Only one taxpayer per home may claim it. The Department caps total approvals at $1,000,000 in FY 2024‑25 and $1,500,000 in later fiscal years and prorates if requests exceed those caps.
New property tax relief on bills
The state creates a School District Property Tax Relief Credit Fund and transfers $750 million in FY 2024‑25, with planned amounts through FY 2029‑30 and 3% growth each year after 2030. Minimum total relief is set by tax year: $750 million for 2024, rising to $902 million for 2029, and then growing 3% yearly. By September 15 each year, the state certifies each county’s amount. Counties get two equal payments (by Jan. 31 and by Apr. 1) and apply them as credits against school district taxes on your property. Your parcel’s credit is based on its share of the prior year’s school district taxes, and homestead credits apply first.
Caps for Cast and Crew credits
Under the Cast and Crew Nebraska Act, total credits are capped at $500,000 for FY 2025‑26 and $1,000,000 in later years. A single qualified production can claim up to $500,000 in FY 2025‑26 and up to $1,000,000 in later years.
Credit for shortline rail repairs
Starting January 1, 2025, taxpayers can claim a nonrefundable credit equal to 50% of qualified shortline railroad maintenance costs. Your credit cannot exceed $1,500 times the miles of track you own or lease in Nebraska at year end. The statewide cap is $500,000 in fiscal year 2025‑26 and $1,000,000 in later fiscal years.
More relocation tax credits each year
The department can approve up to $5 million in Relocation Incentive tax credits each year, up from $1 million. Other program rules still apply.
Per-district caps for some credits
For calendar years 2025 and 2026, the total annual cap for the program is $900,000, with $300,000 allocated to each congressional district. Starting in 2027, the total cap is $3,000,000, with $1,000,000 per district. Once a district or statewide cap is met, no more credits are allowed for that year.
Limits on High Impact Act approvals
Approvals under the Creating High Impact Economic Futures Act are capped by year. The cap is $3,000,000 total for 2022–2023 combined, and $6,000,000 per year for 2024 and 2025. No approvals are allowed from 2026 through 2029. Approvals may resume at up to $6,000,000 per year starting in 2030, with a wait list after any yearly limit is reached.
Count Nebraska teleworkers for credits
Teleworkers who work in Nebraska from home count as your employees for credit programs, and property you provide them counts as your investment. Per‑item and independent‑contractor teleworkers count if you withhold Nebraska income tax from their pay. For those workers, divide total yearly payments by the qualifying wage and then by 2,080 hours to get equivalent new employees.
Credit for donating food
For tax years starting in 2025 and before 2026, grocery stores, restaurants, and eligible farms get an income tax credit for food donations. The credit equals 50% of the donation’s value, up to $2,500 per taxpayer. The state may certify up to $500,000 of these credits each fiscal year and prorates if requests exceed that cap. Unused credit carries forward up to three years. You must apply, document donations, add back any federal charitable deduction, and you are ineligible if you employ unauthorized workers.
Tax credit for community donations
The law creates the Community Development Assistance Act. If you or your business donate to a Department‑certified community program, you can claim a state tax credit equal to 40% of your gift. You can carry forward unused credit for up to five years. Total credits under this program are capped at $350,000 each fiscal year. Credits apply against state income tax, and insurers and financial institutions may also use them against insurance premium/retaliatory or franchise taxes. Programs must be certified by the Department, with local review and a 45‑day decision window.
New fees and cap for redevelopment incentives
Applications under the Urban Redevelopment Act must include a $500 fee; if not approved, $400 is refunded and the state keeps $100. The state stops approving projects once expected incentives from approved projects total $8 million. No new applications are allowed after December 31, 2031.
Rural incentive fees and 2027 application cutoff
For the Nebraska Advantage Rural Development Act, application fees depend on your stated investment: $100 under $25,000; $250 for $25,000 to under $50,000; $500 for $50,000 or more. Fees go to the Nebraska Incentives Fund, and most application details stay confidential. No new applications may be filed after December 31, 2027.
Livestock credit threshold and yearly caps
For the livestock modernization credit, the minimum investment is $10,000 for applications filed from Jan. 1, 2024, through Dec. 31, 2025. Before 2024 and on or after Jan. 1, 2026, the minimum returns to $50,000. The Tax Commissioner must stop approvals in a calendar year once expected credits for an applicant category reach that year’s cap.
New sales tax filing and bonds
Filing frequency now depends on yearly sales tax owed: under $900 file annually, $900 to under $3,000 file quarterly, and $3,000 or more file monthly. Each year you must reconcile what you paid and owed; if you underpaid by more than 10%, you owe a penalty equal to 50% of the unpaid tax. Retailers can file one combined return for locations with 80% common ownership. If you transfer receivables to a subsidiary without a Nebraska permit, you must post a surety bond at least twice the tax due on those receivables.
New rule for splitting surplus receipts
Each year, within 15 days after the fiscal year ends, the Tax Commissioner compares actual General Fund receipts to estimates and to 103% of last year’s receipts. If receipts beat estimates, money is transferred to the Cash Reserve Fund and, when growth also tops 103% of last year, to the School District Property Tax Relief Credit Fund. The split follows the law’s ordering based on which amount is larger.
Updated veteran disability definitions
The law refines who qualifies as a disabled or blind veteran for tax exemptions. A disabled veteran includes those with loss of use or amputation of two or more limbs, or one or more amputations plus loss of use of another limb. A blind veteran has vision so poor it seriously limits work and daily activities.
Nonprofit projects: contractors buy tax-free
Beginning July 1, 2026, a nonprofit may appoint its construction contractor in writing as its purchasing agent. The contractor can then buy materials tax‑free if the items will be annexed to the nonprofit’s real estate. Contractors may also seek a refund or credit for sales or use tax already paid on annexed items.
More notice on property tax hikes
Community colleges are added to the property tax request rules. If a local subdivision wants to raise its property tax request above allowed growth, it must attend a joint public hearing held between Sept. 14 and Sept. 24 after 6 p.m. Counties must mail a postcard notice to affected taxpayers at least seven days before the hearing and meet posting and filing deadlines.
Faster vacant-home foreclosures and lower deed fees
For homes ruled vacant and abandoned, a tax‑lien holder must sue to foreclose within 9 months after 2 years from the sale. For other real estate, the deadline is 9 months after 3 years from the sale. Using the shorter window requires an affidavit that the property is vacant and abandoned. A land bank holding a tax sale certificate can, after 3 years plus 9 months, ask the county for a tax deed or foreclose under law. County issuance fees for tax‑sale deeds or certificates drop to $20; no fee on deeds in the county’s name, but owed on assigned certificates.
New fees and notices in tax sales
To bid at a county tax sale, you must register and pay a $25 fee. When a tax sale certificate is issued, the owner is charged a $150 administrative fee, and the purchaser may claim a service fee equal to at least $100 or actual service cost. The county treasurer can charge $2 to record a redemption. Purchasers must try personal or residence service on owners, or use certified mail, and prove service. If you hold a tax certificate, you may apply for a tax deed when 110% of the assessed value minus the redemption amount is $25,000 or less; otherwise you must foreclose the lien. Grantees must pay any surplus to the prior owner within 30 days, after deducting redemption, encumbrances, and an allowed $500 admin fee or reasonable attorney’s fees in judicial foreclosure. County tax‑sale lists must include owner name, parcel number, and street address (if any), and the state posts a compiled list online.
Effective dates and statute repeals
Many listed sections take effect on January 1, 2026. Two sections take effect three months after the legislature adjourns. The act declares an emergency and is otherwise effective upon enactment. The law also repeals a list of older statutes, removing those provisions from Nebraska law.
Sponsors & Cosponsors
Sponsor
R. Brad von Gillern
legislature
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
legislature vote • 4/24/2026
Vote
Yes: 38 • No: 1 • Other: 10
legislature vote • 4/24/2026
Vote
Yes: 16 • No: 25 • Other: 8
legislature vote • 4/24/2026
Vote
Yes: 15 • No: 32 • Other: 2
legislature vote • 4/24/2026
Vote
Yes: 30 • No: 10 • Other: 9
legislature vote • 4/24/2026
Vote
Yes: 32 • No: 0 • Other: 17
legislature vote • 4/24/2026
Vote
Yes: 28 • No: 0 • Other: 21
legislature vote • 4/24/2026
Vote
Yes: 38 • No: 0 • Other: 11
legislature vote • 4/24/2026
Vote
Yes: 38 • No: 0 • Other: 11
legislature vote • 4/30/2025
Final Reading
Yes: 40 • No: 7
legislature vote • 4/24/2025
Vote
Yes: 34 • No: 5 • Other: 10
legislature vote • 4/24/2025
Vote
Yes: 32 • No: 0 • Other: 17
legislature vote • 4/24/2025
Vote
Yes: 30 • No: 10 • Other: 9
legislature vote • 4/24/2025
Vote
Yes: 15 • No: 32 • Other: 2
legislature vote • 4/24/2025
Vote
Yes: 16 • No: 25 • Other: 8
legislature vote • 4/24/2025
Vote
Yes: 28 • No: 0 • Other: 21
legislature vote • 4/11/2025
Vote
Yes: 38 • No: 0 • Other: 11
legislature vote • 4/11/2025
Vote
Yes: 38 • No: 1 • Other: 10
legislature vote • 4/11/2025
Vote
Yes: 36 • No: 2 • Other: 11
legislature vote • 4/11/2025
Vote
Yes: 38 • No: 0 • Other: 11
Actions Timeline
Provisions/portions of LB270 amended into LB650 by AM923
6/6/2025legislatureProvisions/portions of LB458 amended into LB650 by AM923
6/6/2025legislatureProvisions/portions of LB494 amended into LB650 by AM923
6/6/2025legislatureProvisions/portions of LB495 amended into LB650 by AM923
6/6/2025legislatureProvisions/portions of LB547 amended into LB650 by AM923
6/6/2025legislatureApproved by Governor on May 6, 2025
5/6/2025legislatureDispensing of reading at large approved
4/30/2025legislaturePassed on Final Reading with Emergency Clause 40-7*-2
4/30/2025legislaturePresident/Speaker signed
4/30/2025legislaturePresented to Governor on April 30, 2025
4/30/2025legislaturePlaced on Final Reading
4/28/2025legislatureEnrollment and Review ER45 adopted
4/24/2025legislaturevon Gillern AM1118 adopted
4/24/2025legislaturevon Gillern AM1132 adopted
4/24/2025legislatureHallstrom AM1089 withdrawn
4/24/2025legislatureHallstrom AM1066 adopted
4/24/2025legislatureHallstrom AM1123 withdrawn
4/24/2025legislatureMcKinney AM1155 filed
4/24/2025legislatureMcKinney AM1155 lost
4/24/2025legislatureCavanaugh, J. FA131 filed
4/24/2025legislatureCavanaugh, J. FA131 lost
4/24/2025legislatureAdvanced to Enrollment and Review for Engrossment
4/24/2025legislaturevon Gillern AM1118 filed
4/23/2025legislaturevon Gillern AM1132 filed
4/23/2025legislatureHallstrom AM1089 filed
4/23/2025legislature
Bill Text
Introduced
6/6/2025
Enrolled / Slip Law
Final / Enacted