All Roll Calls
Yes: 656 • No: 7
NebraskaLB803109th Legislature 1st and 2nd SessionslegislatureWALLET
Adopt the First-Time Home Buyer Savings Account Act and change provisions relating to the Sports Arena Facility Financing Assistance Act, the Property Tax Growth Limitation Act, the Domestic Violence and Human Trafficking Service Providers Tax Credit Act, property tax valuation and levy procedures, homestead exemptions, and income taxes
Sponsored By: Revenue Committee
Signed by Governor
Revenue Committee
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Bill Overview
Analyzed Economic Effects
16 provisions identified: 6 benefits, 2 costs, 8 mixed.
Tax break for first-time home savings
Beginning January 1, 2027, you can open a first-time home buyer savings account. You can subtract your contributions (up to $5,000 single or $10,000 joint each year) and any interest earned from your Nebraska taxable income. Lifetime caps are $25,000 for single filers and $50,000 for joint filers. Money can pay down payments, closing costs, and some construction financing to buy or build a Nebraska primary home. Active-duty military stationed in Nebraska can use funds to buy out of state after the account is opened. You must name a qualified beneficiary by April 15 of the year after opening and file a Department form with your tax return, including the bank’s 1099.
New tax credits for victim services
Starting with tax years on or after January 1, 2027, Nebraska provides refundable tax credits to victim service nonprofits. $240,000 is split equally each year among qualifying tribal domestic violence and sexual assault programs. $150,000 goes each year to a statewide coalition that works with Health and Human Services. $1,044,000 is split equally among qualifying nonprofit shelters. $1,566,000 more is split by service area: $1,252,800 by population and $313,200 by square miles. The Department of Revenue must distribute all of these credits every year. Eligible nonprofits are 501(c)(3) groups, and “tribal” uses the state’s existing legal definition.
Penalties for nonqualified home account withdrawals
For tax years starting January 1, 2027, if you take money out within one year of your first deposit or use it for non-allowed costs, the amount is added back to your Nebraska taxable income. You also owe a penalty: 5% if the withdrawal is within 10 years of the first deposit, or 10% after 10 years. No penalty applies if the account holder dies, though recapture still applies. Exceptions cover active-duty military using funds to buy out of state and some cases where the beneficiary dies without a same‑year redesignation.
Annual levy must fund certified requests
By October 20 each year, the county board must set the property tax levy within legal limits and include amounts needed to fund certified property tax requests. This rule can increase how much property tax gets billed to meet those certified requests.
Cap on local property tax growth
For fiscal years starting on or after July 1, 2025, each local government's preliminary property tax request starts at last year’s approved request minus certain exceptions. It can then rise by the growth percentage and by the positive inflation percentage applied to last year’s levies (less those exceptions). This caps tax requests but still allows increases for growth and inflation.
Homestead application rules, privacy, and deadlines
You must use the state’s uniform homestead form and file after February 1 and by June 30 each year. Counties can extend to July 20, but not for someone who got an extension the prior year. Late filing is allowed if a medical condition impaired filing or if your spouse died that year and you provide the death certificate. Claims under sections 77-3507 or 77-3508 must attach a full household income statement. Applications are confidential and seen only by tax officials. The Tax Commissioner gives county assessors prior‑year forms and address lists to help administer the program.
Veteran and spouse homestead rules updated
If a veteran with a five‑year homestead exemption dies during that period, the surviving spouse keeps the exemption until the five years end. After that, the spouse must apply each year under the other homestead rule to continue relief. A surviving spouse loses the exemption if they remarry before age 57 and must notify the assessor within 30 days; remarriage on or before August 15 makes the spouse ineligible for that year. Applications in listed veteran categories include a signed statement about this duty, and VA certification is required only every fifth year for certain veteran exemptions.
State arena aid: shares and limits
Nebraska can pay grants to approved local arena projects from the Sports Arena Facility Support Fund. For most facilities, the state can pay up to 70% of certain state sales taxes tied to the arena, tickets, and nearby area sales. For sports complexes in a city of the second class or a village, the share is capped at 25% and aid lasts no more than five years or until the cap is reached. After year 10, a facility cannot get more than its largest single‑year payment from its first 10 years, and any excess goes to the General Fund; this excess rule does not apply to small‑city or village complexes. Large public stadiums face a $25 million lifetime cap and a $1.25 million per‑year cap, and no payments are allowed before July 1, 2027. The board acts by majority vote at a meeting that includes the Governor.
Fixing levy mistakes and refunding overcharges
On or before November 5, the county board can fix clerical errors that caused a wrong levy, after a public hearing with notice of the time, place, dollar amount, and nature of the error. If a countywide levy collected too much due to a mistake, local governments must return the extra amount (minus collection fees) in the next fiscal year. The county treasurer must certify the return amount by July 31 of that next year.
More notice about valuations and hearings
By June 1, counties must send the state a list of people who got valuation notices and a website for budget hearing details. By June 25, the state mails those people a postcard with that website. When the assessment roll is finished, the assessor must publish a notice that it is complete and list the last date to protest. By June 6 each year, assessors must also post and send out assessment ratio statistics. Counties, cities, and schools must hold a joint public budget hearing between July 1 and July 15 after 6 p.m., open to anyone to speak.
Public hearing before higher tax requests
If a local government wants a higher property tax request than last year, it must hold a special public hearing. The notice must be published at least 4 days before and show prior and proposed values, rates, dollar amounts, the budget change percent, and the record vote. Small subdivisions can post the notice at their headquarters instead of a newspaper.
Banks face no extra home-buyer tasks
Banks and credit unions do not have new duties for First‑Time Home Buyer Savings Accounts. They do not have to label accounts, track how people use withdrawals, or check who qualifies. The Department of Revenue cannot require extra reporting beyond normal account management. This rule applies starting January 1, 2027.
Clear protest steps and extra hearing time
By June 1, the assessor must mail you a valuation-change notice that shows old and new values and how to protest by June 30. Your protest must state your reasons, your requested value, evidence, and a property description, or it will be dismissed. Large counties (over 100,000 people) may extend protest hearings to August 10 if they vote by July 25, but they give up one state appeal option for that year.
Faster arena aid decisions and safeguards
The state board must decide arena-aid applications within 60 days after the public hearing. Some approvals start as temporary and become permanent only if voters approve the bond or if a building permit is issued within 24 months; otherwise they expire. The board must also consider whether the applicant can afford the local share.
Old homestead and tax-limit laws repealed
The law repeals earlier homestead and property tax growth‑limit sections. Those old rules no longer apply. The new homestead and tax‑limit rules above now govern how applications and local tax caps work.
Old property tax sections repealed
The law repeals sections 77-1315, 77-1502, 77-1601, 77-1776, 77-1632, and section 2 of LB901 (2026). These provisions are removed from Nebraska law as of the law’s effective date. The exact effects depend on what those repealed sections covered.
Sponsors & Cosponsors
Sponsor
Revenue Committee
Affiliation unavailable
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
legislature vote • 4/24/2026
Vote
Yes: 34 • No: 0 • Other: 15
legislature vote • 4/24/2026
Vote
Yes: 30 • No: 3 • Other: 16
legislature vote • 4/24/2026
Vote
Yes: 35 • No: 0 • Other: 14
legislature vote • 4/24/2026
Vote
Yes: 39 • No: 0 • Other: 10
legislature vote • 4/24/2026
Vote
Yes: 39 • No: 0 • Other: 10
legislature vote • 4/24/2026
Vote
Yes: 32 • No: 0 • Other: 17
legislature vote • 4/24/2026
Vote
Yes: 37 • No: 0 • Other: 12
legislature vote • 4/24/2026
Vote
Yes: 37 • No: 0 • Other: 12
legislature vote • 4/10/2026
Final Reading
Yes: 48 • No: 1
legislature vote • 4/7/2026
Vote
Yes: 35 • No: 0 • Other: 14
legislature vote • 4/7/2026
Vote
Yes: 30 • No: 3 • Other: 16
legislature vote • 3/30/2026
Vote
Yes: 39 • No: 0 • Other: 10
legislature vote • 3/30/2026
Vote
Yes: 32 • No: 0 • Other: 17
legislature vote • 3/30/2026
Vote
Yes: 34 • No: 0 • Other: 15
legislature vote • 3/30/2026
Vote
Yes: 37 • No: 0 • Other: 12
legislature vote • 3/30/2026
Vote
Yes: 42 • No: 0 • Other: 7
legislature vote • 3/30/2026
Vote
Yes: 37 • No: 0 • Other: 12
legislature vote • 3/30/2026
Vote
Yes: 39 • No: 0 • Other: 10
Actions Timeline
Presented to Governor on April 10, 2026
4/17/2026legislatureApproved by Governor on April 16, 2026
4/17/2026legislatureDispensing of reading at large approved
4/10/2026legislaturePassed on Final Reading with Emergency Clause 48-1*-0
4/10/2026legislaturePresident/Speaker signed
4/10/2026legislaturePlaced on Final Reading with ST93
4/8/2026legislatureEnrollment and Review ST93 filed
4/8/2026legislatureEnrollment and Review ST93 recorded
4/8/2026legislatureEnrollment and Review ER174 adopted
4/7/2026legislatureKauth FA432 withdrawn
4/7/2026legislatureDorn AM2990 withdrawn
4/7/2026legislaturevon Gillern AM3083 filed
4/7/2026legislaturevon Gillern AM3083 adopted
4/7/2026legislatureBostar AM3062 filed
4/7/2026legislatureBostar AM3062 adopted
4/7/2026legislatureAdvanced to Enrollment and Review for Engrossment
4/7/2026legislaturePlaced on Select File with ER174
4/1/2026legislatureEnrollment and Review ER174 filed
4/1/2026legislatureDorn AM2990 filed
3/31/2026legislatureConrad MO539 withdrawn
3/30/2026legislatureConrad MO540 withdrawn
3/30/2026legislatureConrad MO541 withdrawn
3/30/2026legislatureHallstrom AM2967 to AM2651 filed
3/30/2026legislatureObjection to unanimous consent request to substitute amendment
3/30/2026legislatureHallstrom MO553 Withdraw AM2756 and substitute AM2967 filed
3/30/2026legislature
Bill Text
Introduced
4/17/2026
Enrolled / Slip Law
Final / Enacted