# Nebraska LB650: 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 Nebraska LB650, 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, is a 109th Legislature 1st and 2nd Sessions legislature bill sponsored by R. Brad von Gillern; status signed, last action 2025-06-06 (Provisions/portions of LB547 amended into LB650 by AM923); PRIA reads it as touching household money (as of 2026-10-17). - Canonical: https://policyrisk.com/state-bill/NE-LB650-109 - As of: 2026-10-17 - Plain-text twin of the page above; the HTML and this file carry the same facts. ## Facts - Bill: Nebraska LB650 - State: Nebraska - Session: 109th Legislature 1st and 2nd Sessions - Title: 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 - Status: signed - Chamber: legislature - Introduced: 2025-01-22 - Last action: 2025-06-06, Provisions/portions of LB547 amended into LB650 by AM923 - Sponsor: R. Brad von Gillern - Cosponsors: 0 - Subjects: Revenue Committee - Touches household money: yes - Roll calls: 19 (580 yes, 150 no in all) - Economic provisions PRIA read: 27 ## Summary No summary available. ## Bill overview: provisions PRIA read - School property tax credits grow: benefit, high. Nebraska funds big yearly credits that lower school district taxes on your property tax bill. Minimum statewide relief is $750 million for 2024; $780 million for 2025; $808 million for 2026; $838 million for 2027; $870 million for 2028; and $902 million for 2029. From 2030 on, the minimum rises 3%… - Up to $1,000 for home water: benefit, high. You can claim a refundable credit equal to 50% of the cost to install a reverse‑osmosis system, up to $1,000. Only one taxpayer per home can claim it. You must submit a drinking‑water test and system cost documents. The Department approves in the order received until the annual cap is met. Caps are… - 2025 credit for food donations: benefit, high. For 2025, grocery retailers, restaurants, and farm producers can claim a Nebraska credit equal to 50% of qualifying food donations, up to $2,500. Credits are nonrefundable, carry forward three years, and are split proportionally if requests exceed the $500,000 program cap. You must add back any fed… - Business credit for community donations: benefit, high. Nebraska gives businesses a tax credit equal to 40% of cash or in‑kind gifts to state‑certified community betterment programs. Unused credit carries forward for five years. The state caps total certified credits at $350,000 each fiscal year, and the Department of Economic Development must certify p… - Shortline railroad maintenance credit: benefit, high. Starting in 2025, eligible shortline rail owners or lessees get a nonrefundable Nebraska credit equal to 50% of qualified maintenance costs. Each taxpayer’s credit is capped at $1,500 times the miles of track they own or lease in Nebraska. The program’s total credits are capped at $500,000 per fisc… - More industries can use community credits: benefit, high. Insurance companies can use Community Development Assistance Act credits against Nebraska premium tax. Financial institutions can use those credits against the Nebraska franchise tax. This broadens who can reduce tax by funding certified community development programs. - School property tax credit on bills: benefit, medium. The state funds a school property tax credit that shows up on your bill. Each county’s share equals its prior‑year school taxes divided by the statewide total. The Property Tax Administrator certifies amounts by September 15 each year, and counties get two equal payments by January 31 and April 1.… - Stronger tax-sale notice and rights: benefit, medium. Buyers of tax-sale certificates must try to serve owners in person or at home; only then can they use certified mail. For vacant and abandoned property, buyers must make three failed in‑person attempts before using mail. Pre‑deed notices must warn that later taxes may have been paid and that intere… - Resident credit for community giving: benefit, medium. Nebraska residents can claim a nonrefundable state income tax credit for donations to programs certified under the state’s economic and community development laws. If you own a share of a pass‑through business, you report your share of the credit the same way you report your share of income. - Less tax on tower and broadcast leases: benefit, medium. Leases or uses of towers, structures, and related gear are excluded from gross receipts when mainly used for internet access, farm GPS, or FCC‑licensed radio/TV broadcasting. The exclusion now also covers antennas and studio transmitter link systems. A studio transmitter link system is the radio ge… - Tax breaks clarified for disabled veterans: benefit, low. Motor vehicles and mobile homes can be tax‑exempt if owned and used or occupied by a disabled or blind veteran with a VA‑recognized service‑connected condition. The veteran must have an honorable discharge (mobile homes also allow general under honorable conditions). Motor‑vehicle exemptions requir… - Stronger privacy for sales tax data: benefit, low. Certified tax service providers must run systems that do not keep consumers’ personal data, except when needed to process tax‑exempt purchases. They must publish a privacy policy, let people see and correct any data they keep, stop keeping data when no longer needed, and use safeguards. The Attorne… - Clearer rules for county tax sales: benefit, low. County treasurers must publish a list with owner name, parcel number, and any street address, and may hold sales at the office or another named place. Sales start on the noticed day and continue day to day, except Sundays and holidays, until taxes and charges are covered. Treasurers can delegate ma… - Lower film tax credit caps: cost, high. Cast and Crew Nebraska credits are limited to $500,000 per fiscal year. Any single film or TV production can claim no more than $500,000 in a year. The limits apply to full‑length films, TV movies, and qualifying TV or streaming series. - Smaller sales and use tax allowance: cost, high. Sellers and designated collectors may now keep only 2.5% of the first $3,000 of sales or use tax they remit each month. This replaces the old 3% of the first $5,000 rule. Combined filers compute by location. For use tax, you forfeit the deduction if you violate a Tax Commissioner rule. - 2025 program credits capped, then end: cost, medium. For calendar year 2025, the total available credits are capped at $900,000, with $300,000 per congressional district. In districts 1 and 3, a single program or project is limited to $150,000. The law stops allowing these credits in 2026 and later. Unused credits allowed in 2025 can still be carried… - Lower annual caps on credits: cost, medium. The Department of Revenue can approve only $1,000,000 in certain tax credits each fiscal year. The Relocation Incentive program is also limited to $1,000,000 per year. If requests exceed these limits, the Department splits credits proportionally among applicants. - Lower caps for rural development credits: cost, medium. The state sets yearly caps on total expected credits for Rural Development Act projects. For subsection (1): $1,000,000 for 2016–2022; $2,000,000 for 2023–2025; $1,000,000 for 2026 and later. For subsection (2): $500,000 (2016); $750,000 (2017–2018); $1,000,000 (2019–2021); $10,000,000 (2022–2024);… - No new Urban Redevelopment incentives: cost, medium. The state stops accepting new applications for incentives under the Urban Redevelopment Act as of the section’s operative date. Existing approved agreements continue under current rules. - Contractors’ tax‑free buys limited to nonprofits: cost, low. Starting July 1, 2026, a contractor can buy building materials tax‑free only when the client is a nonprofit. The client must appoint the contractor in writing before items are annexed to real estate. Contractors who paid tax without prior authorization can still seek refunds when the client is a no… - Community colleges dropped from tax hearings: cost, low. For joint public hearings on property tax request increases, “political subdivision” now means counties, cities, or school districts. Community colleges no longer take part in these joint hearings when asking for more than allowable growth. - Program credit approvals paused 2026–2029: mixed, high. The director may approve up to $3 million in credits for 2022–2023 and up to $6 million for 2024–2025. No program certifications are approved for 2026–2029. Starting in 2030, approvals up to $6 million per year resume. Applications are handled in the order received, with a wait list after annual li… - Faster deeds for vacant properties: mixed, medium. For property found vacant and abandoned, a buyer (or land bank) can apply for a tax deed within nine months after two years from sale; all others stay on the three‑year timeline. A land bank must start foreclosure within nine months after two years for vacant and abandoned parcels; others follow th… - Rural development farm credit changes: mixed, medium. Livestock projects need at least $10,000 of investment for applications filed in 2024–2025, but $50,000 before 2024 and again for filings in 2026 or later. The refundable livestock credit equals 10% of investment, capped at $500,000 per application for filings from April 20, 2022 through 2025, and… - New fees and notices for tax sales: mixed, low. If a tax‑sale certificate is issued on your property, you must pay a one‑time $150 administrative fee. Buyers pay a $25 certificate issuance fee; if the county assigns a county‑held certificate later, the buyer pays $25 then. The advertising cost per property drops from $25 to $20, the $2 redemptio… - When this law takes effect: mixed, low. Many sections start on January 1, 2026. Two sections start three months after the Legislature adjourns. The law declares an emergency, so the act takes effect when passed and approved. It also repeals a long list of older statutes. - Cities can review local taxes: mixed, low. Cities with a local sales tax can request sellers’ confidential returns for locations in the city. The city must give 10 business days’ notice, name one certified reviewer, and review records at the state Department unless a secure electronic setup exists. The reviewer can alert the Auditor of Publ… ## Sponsors and cosponsors - Sponsor: R. Brad von Gillern, Senate ## Roll call votes | Date | Chamber | Motion | Result | Yes | No | Other | | --- | --- | --- | --- | --- | --- | --- | | 2025-04-30 | legislature | Final Reading | pass | 40 | 7 | | | 2025-04-24 | legislature | Vote | fail | 28 | 0 | 21 | | 2025-04-24 | legislature | Vote | fail | 32 | 0 | 17 | | 2025-04-24 | legislature | Vote | fail | 16 | 25 | 8 | | 2025-04-24 | legislature | Vote | fail | 15 | 32 | 2 | | 2025-04-24 | legislature | Vote | fail | 30 | 10 | 9 | | 2025-04-24 | legislature | Vote | fail | 34 | 5 | 10 | | 2025-04-11 | legislature | Vote | fail | 38 | 1 | 10 | | 2025-04-11 | legislature | Vote | fail | 38 | 0 | 11 | | 2025-04-11 | legislature | Vote | fail | 36 | 2 | 11 | | 2025-04-11 | legislature | Vote | fail | 38 | 0 | 11 | | | legislature | Vote | fail | 30 | 10 | 9 | | | legislature | Vote | fail | 16 | 25 | 8 | | | legislature | Vote | fail | 38 | 1 | 10 | | | legislature | Vote | fail | 38 | 0 | 11 | | | legislature | Vote | fail | 38 | 0 | 11 | | | legislature | Vote | fail | 28 | 0 | 21 | | | legislature | Vote | fail | 32 | 0 | 17 | | | legislature | Vote | fail | 15 | 32 | 2 | ## Actions (67) - 2025-06-06: Provisions/portions of LB547 amended into LB650 by AM923 (legislature) - 2025-06-06: Provisions/portions of LB495 amended into LB650 by AM923 (legislature) - 2025-06-06: Provisions/portions of LB494 amended into LB650 by AM923 (legislature) - 2025-06-06: Provisions/portions of LB458 amended into LB650 by AM923 (legislature) - 2025-06-06: Provisions/portions of LB270 amended into LB650 by AM923 (legislature) - 2025-05-06: Approved by Governor on May 6, 2025 (legislature) - 2025-04-30: Presented to Governor on April 30, 2025 (legislature) - 2025-04-30: President/Speaker signed (legislature) - 2025-04-30: Passed on Final Reading with Emergency Clause 40-7*-2 (legislature) - 2025-04-30: Dispensing of reading at large approved (legislature) - 2025-04-28: Placed on Final Reading (legislature) - 2025-04-24: Advanced to Enrollment and Review for Engrossment (legislature) - 2025-04-24: Cavanaugh, J. FA131 lost (legislature) - 2025-04-24: Cavanaugh, J. FA131 filed (legislature) - 2025-04-24: McKinney AM1155 lost (legislature) - 2025-04-24: McKinney AM1155 filed (legislature) - 2025-04-24: Hallstrom AM1123 withdrawn (legislature) - 2025-04-24: Hallstrom AM1066 adopted (legislature) - 2025-04-24: Hallstrom AM1089 withdrawn (legislature) - 2025-04-24: von Gillern AM1132 adopted (legislature) - 2025-04-24: von Gillern AM1118 adopted (legislature) - 2025-04-24: Enrollment and Review ER45 adopted (legislature) - 2025-04-23: Hallstrom AM1123 filed (legislature) - 2025-04-23: Hallstrom AM1066 filed (legislature) - 2025-04-23: Hallstrom AM1089 filed (legislature) - 2025-04-23: von Gillern AM1132 filed (legislature) - 2025-04-23: von Gillern AM1118 filed (legislature) - 2025-04-22: Enrollment and Review ER45 filed (legislature) - 2025-04-22: Placed on Select File with ER45 (legislature) - 2025-04-11: Advanced to Enrollment and Review Initial (legislature) - 2025-04-11: von Gillern AM690 withdrawn (legislature) - 2025-04-11: Revenue AM923 adopted (legislature) - 2025-04-11: von Gillern AM1020 adopted (legislature) - 2025-04-11: von Gillern AM1020 to AM923 filed (legislature) - 2025-04-11: von Gillern AM981 adopted (legislature) - 2025-04-11: von Gillern AM981 pending (legislature) - 2025-04-11: von Gillern MO162 withdrawn (legislature) - 2025-04-11: von Gillern MO162 Recommit to the Revenue Committee filed (legislature) - 2025-04-11: von Gillern MO161 withdrawn (legislature) - 2025-04-11: von Gillern MO161 Bracket until June 10, 2025 filed (legislature) - 2025-04-11: Revenue AM923 pending (legislature) - 2025-04-11: von Gillern MO160 withdrawn (legislature) - 2025-04-11: von Gillern MO160 Indefinitely postpone pursuant to Rule 6, Sec. 3(f) filed (legislature) - 2025-04-10: von Gillern MO157 withdrawn (legislature) - 2025-04-10: von Gillern MO156 withdrawn (legislature) - 2025-04-10: von Gillern MO155 withdrawn (legislature) - 2025-04-10: von Gillern MO154 withdrawn (legislature) - 2025-04-10: von Gillern MO153 withdrawn (legislature) - 2025-04-10: von Gillern FA85 withdrawn (legislature) - 2025-04-10: von Gillern FA84 withdrawn (legislature) - 2025-04-10: von Gillern AM981 to AM923 filed (legislature) - 2025-04-09: Revenue AM923 filed (legislature) - 2025-04-09: Placed on General File with AM923 (legislature) - 2025-04-08: von Gillern FA85 filed (legislature) - 2025-04-08: von Gillern FA84 filed (legislature) - 2025-04-08: von Gillern MO157 Recommit to the Revenue Committee filed (legislature) - 2025-04-08: von Gillern MO156 Bracket until June 10, 2025 filed (legislature) - 2025-04-08: von Gillern MO155 Recommit to the Revenue Committee filed (legislature) - 2025-04-08: von Gillern MO154 Bracket until June 10, 2025 filed (legislature) - 2025-04-08: von Gillern MO153 Indefinitely postpone pursuant to Rule 6, Sec. 3(f) filed (legislature) - 2025-03-17: von Gillern AM690 filed (legislature) - 2025-03-13: Revenue priority bill (legislature) - 2025-03-11: Notice of hearing for March 19, 2025 (legislature) - 2025-01-31: Notice of hearing for February 07, 2025 (cancel) (legislature) - 2025-01-30: Notice of hearing for February 07, 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/LB650.pdf) - Enrolled / Slip Law: [PDF](https://nebraskalegislature.gov/FloorDocs/109/PDF/Slip/LB650.pdf) - Final / Enacted: [PDF](https://nebraskalegislature.gov/FloorDocs/109/PDF/Final/LB650.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) - LB13: Require the Department of Health and Human Services to file a state plan amendment relating to child care (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) - LB714: Change provisions relating to motor vehicle taxes and fees (failed) ## Sources - [Introduced (PDF)](https://nebraskalegislature.gov/FloorDocs/109/PDF/Intro/LB650.pdf) - [Enrolled / Slip Law (PDF)](https://nebraskalegislature.gov/FloorDocs/109/PDF/Slip/LB650.pdf) - [Final / Enacted (PDF)](https://nebraskalegislature.gov/FloorDocs/109/PDF/Final/LB650.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) - [LB13: Require the Department of Health and Human Services to file a state plan amendm…](https://policyrisk.com/state-bill/NE-LB13-109) - [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) - [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-LB650-109 (as of 2026-10-17).