PRIA Logo™
NebraskaLB901109th Legislature 1st and 2nd SessionslegislatureWALLET

Adopt the Domestic Violence and Human Trafficking Service Providers Tax Credit Act, change provisions related to the confidentiality of shared information, the distribution of certain tax revenue, contracts between the Tax Commissioner and collection agencies, the collection and enforcement of delinquent income tax claims, the ImagiNE Nebraska Act, the Kratom Consumer Protection Act, the Mechanical Amusement Device Tax Act, and the Nebraska Advantage Research and Development Act, provide for fees, provide an excise tax on kratom, eliminate certain personal property and sales and use tax exemptions and a tax credit, and terminate the Department of Revenue Miscellaneous Receipts Fund

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

18 provisions identified: 3 benefits, 7 costs, 8 mixed.

Easier to cash out R&D credits

You can use the Nebraska R&D credit to get back state sales and use taxes you paid on qualifying costs or to lower your income tax. After you file the income tax return for the first year the credit was allowed, you may file refund claims quarterly. Owners of pass‑throughs can use distributed credits against their own income tax. Refunds cannot be more than the state sales and use taxes paid on the qualifying expenses.

Credits for domestic violence providers

Beginning January 1, 2027, Nebraska provides $3,000,000 each year in refundable income tax credits for groups that serve domestic violence, sexual assault, and human trafficking survivors. The state splits the money by set amounts, including $240,000 shared by tribal programs, $150,000 for a statewide coalition, $1,044,000 shared among tribal, coalition, and nonprofit shelter operators, and $1,566,000 split by population and square miles. The credit is refundable and can be sold to another taxpayer; the seller must notify the Department 30 days before the buyer claims it. Estates, trusts, corporations, and beneficiaries can also claim these credits under Nebraska rules.

Cash-game winnings pay state debts

Before paying cash‑device winnings, the distributor must check for any state debt tied to the winner. If you owe the state, the distributor deducts up to the amount of your debt from your winnings and sends it to the Department of Revenue. You receive only the remaining amount.

Higher fees and tougher tax collections

The Department adds a fee to every delinquent tax claim equal to $25 or 10% of the tax, whichever is higher, and can add its actual collection costs. The same $25 or 10% fee applies when an assessment or deficiency notice is issued, and it updates if the amount becomes due. A $40 filing fee can apply to redetermination petitions, with an indigency waiver; a $25 fee is required for interest/penalty waiver requests and for no‑tax‑due certificates. Starting January 1, 2027, these fees rise each year with the Midwest CPI. The state can assign debts to private collection agencies; up to 50% of the unpaid balance can be added to what you owe, in addition to agency fees, and money collected (less fees) must be sent to the state within 45 days. Collected fees are credited to the Department of Revenue Enforcement Fund.

Higher costs and limits for cash devices

Starting July 1, 2025, distributors or uncovered operators pay 10% of each cash device’s net operating revenue, filed quarterly on Jan 1, Apr 1, Jul 1, and Oct 1. Distributors also owe a biennial license fee of $200 per device, capped at $10,000, starting Jan 1, 2025. The device compliance application fee is $500 before Jan 1, 2027 and $650 on/after; annual decals cost $250 per device before 2027 and $350 after. Stores may host devices only if at least 60% of gross revenue comes from other sales; device counts are capped at the smaller of the devices needed to reach 40% of revenue or five (four in a qualified census tract). Big sites over 4,000 sq ft may add one device per extra 1,000 sq ft up to 15, and the Department must approve each location and any move; non‑cash devices owe a $70 annual occupation tax starting in 2027.

More farm bird sales now taxed

Nebraska removes certain game birds from the “animal life” sales and use tax exemption. If you raise or sell those birds, those sales can now be subject to sales and use tax.

Stricter rules for cash game machines

Manufacturers must get a $10,000 license every two years. The department can seize illegal or noncompliant devices and fine up to $1,000 per day, and it can suspend or revoke licenses. Beginning August 1, 2026, a retail site must have an attendant on‑site who watches play, checks ages, and stops anyone under 21. To get a device approved, makers or distributors must submit a full application, a sample machine, an independent lab report showing the game is skill‑based, and promise not to change hardware or software without approval; after approval, they must answer information requests within 15 business days and fix or remove any noncompliant device within 30 days. The department may review contracts, leases, tax filings, and revenue‑sharing records between device businesses. If a decal is damaged through no fault of the operator, the state replaces it for free. The cash‑device tax is split by fixed percentages to state and local funds, the occupation tax is split 20% to the enforcement fund and 80% to the General Fund, and a prior earmark tying some charitable‑gaming taxes to enforcement and a central server is removed.

More support for behavioral health services

Nonprofit providers that are certified or contracted to deliver community mental health or substance use services do not pay Nebraska sales and use tax on their purchases if they get a numbered exemption certificate. Money moved into the Behavioral Health Services Fund goes to the regional behavioral health authority where the cash device that generated it is located.

Stronger tools to collect unpaid taxes

The Tax Commissioner can file unpaid Nebraska tax claims as a court judgment in Lancaster County. The Commissioner can also make agreements with other states and D.C. to collect Nebraska income taxes from people found there who owe Nebraska tax.

Data center equipment exemption ended

Nebraska ends the personal property tax exemption for tangible property used or processed by a data center in the state for later use outside Nebraska. Data centers that relied on this break may now owe property tax on that equipment.

Renewable energy credit window closes

The per‑kWh credit for new renewable electric facilities covers power produced from January 1, 2013 through June 30, 2026 at 0.05 cent per kWh. Electricity generated on or after July 1, 2026 does not qualify for this per‑kWh credit. A producer cannot claim the credit if the facility received the sales tax exemption under section 77‑2704.57 as that section existed on June 30, 2026.

Age checks and ad limits on devices

People under 21 cannot play cash devices. Operators must check IDs and may not accept credit, charge, or debit cards to play. Marketing may not use cartoon‑style or kid‑focused themes, and exterior ads are limited to up to three fixed signs no bigger than 11 by 17 inches, with banners, flags, window wraps, digital displays, and vehicle wraps banned.

Kratom: 10% tax and safety rules

Starting January 1, 2027, a 10% excise tax applies to retail kratom sales, on top of sales tax. Retailers must keep electronic sales records, file monthly returns by the 20th, and may be required to file and pay electronically. The Department sends excise receipts to the General Fund each month. If a processor sells an adulterated kratom product, the state removes it from the registered list, and unlabeled ingredients count as evidence of a consumer‑protection violation. The Tax Commissioner must set rules on ads or packaging that appeal to minors.

When new rules start and end

Many sections start July 1, 2026; others start January 1, 2027; and others start three months after the session ends. An emergency clause makes parts of the law effective upon passage and approval. Several listed statutes are repealed on July 1, 2026; January 1, 2027; or three months after adjournment.

Kratom: testing and enforcement rules

If the state thinks a kratom product may be unsafe, sellers must use a third‑party lab chosen by the state, and sales stop until it passes testing. The Attorney General enforces the Kratom Consumer Protection Act under state consumer‑protection laws. The Act does not allow private lawsuits under that law. A retailer is not liable if it proves it relied in good faith on a processor’s claim that the product met the rules.

ImagiNE incentives: who now qualifies

Beginning July 1, 2026, more sites qualify if most activity is Postharvest Crop Activities (except cotton ginning) or certain processing that does not change a product’s character. Waste treatment and disposal no longer qualifies. A location must have a majority of its activity in listed categories to qualify.

Agencies share data to run programs

By October 31, 2026, DHHS and the Department of Revenue share confidential records with each other when needed to run their laws. The receiving agency may use the data only for administration. Sharing is allowed even if other state laws would bar it, and wrongful disclosure still faces penalties.

New Revenue Enforcement Fund and transfers

The law creates the Department of Revenue Enforcement Fund to pay for tax administration and enforcement, and invests its money under state law. Publication and nonconfidential listing receipts now go into this fund. The Department of Revenue Miscellaneous Receipts Fund ends July 1, 2026, and any money left moves to the Enforcement Fund.

Sponsors & Cosponsors

Sponsor

  • Revenue Committee

    Affiliation unavailable

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 657 • No: 26

legislature vote • 4/1/2026

Final Reading

Yes: 36 • No: 13

legislature vote • 3/18/2026

Vote

Yes: 37 • No: 4 • Other: 8

legislature vote • 3/18/2026

Vote

Yes: 43 • No: 0 • Other: 6

legislature vote • 3/18/2026

Vote

Yes: 36 • No: 1 • Other: 12

legislature vote • 3/18/2026

Vote

Yes: 43 • No: 0 • Other: 6

legislature vote • 3/18/2026

Vote

Yes: 36 • No: 0 • Other: 13

legislature vote • 3/6/2026

Vote

Yes: 35 • No: 1 • Other: 13

legislature vote • 3/6/2026

Vote

Yes: 33 • No: 0 • Other: 16

legislature vote • 3/6/2026

Vote

Yes: 31 • No: 0 • Other: 18

legislature vote • 3/6/2026

Vote

Yes: 33 • No: 1 • Other: 15

legislature vote • Unknown

Vote

Yes: 31 • No: 0 • Other: 18

legislature vote • Unknown

Vote

Yes: 43 • No: 0 • Other: 6

legislature vote • Unknown

Vote

Yes: 43 • No: 0 • Other: 6

legislature vote • Unknown

Vote

Yes: 37 • No: 4 • Other: 8

legislature vote • Unknown

Vote

Yes: 36 • No: 1 • Other: 12

legislature vote • Unknown

Vote

Yes: 33 • No: 0 • Other: 16

legislature vote • Unknown

Vote

Yes: 36 • No: 0 • Other: 13

legislature vote • Unknown

Vote

Yes: 35 • No: 1 • Other: 13

Actions Timeline

  1. Provisions/portions of LB1131 amended into LB901 by AM2406

    4/17/2026legislature

  2. Provisions/portions of LB1110 amended into LB901 by AM2406

    4/17/2026legislature

  3. Provisions/portions of LB1109 amended into LB901 by AM2406

    4/17/2026legislature

  4. Provisions/portions of LB920 amended into LB901 by AM2406

    4/17/2026legislature

  5. Provisions/portions of LB901 amended into LB803 by AM3062

    4/17/2026legislature

  6. Provisions/portions of LB890 amended into LB901 by AM2406

    4/17/2026legislature

  7. Provisions/portions of LB873 amended into LB901 by AM2674

    4/17/2026legislature

  8. Approved by Governor on April 7, 2026

    4/7/2026legislature

  9. Presented to Governor on April 1, 2026

    4/1/2026legislature

  10. President/Speaker signed

    4/1/2026legislature

  11. Passed on Final Reading with Emergency Clause 36-13*-0

    4/1/2026legislature

  12. Dispensing of reading at large approved

    4/1/2026legislature

  13. Bostar AM2600 withdrawn

    4/1/2026legislature

  14. Raybould AM2869 withdrawn

    4/1/2026legislature

  15. Raybould AM2728 withdrawn

    4/1/2026legislature

  16. Raybould AM2626 withdrawn

    4/1/2026legislature

  17. von Gillern MO546 withdrawn

    4/1/2026legislature

  18. Conrad MO497 withdrawn

    4/1/2026legislature

  19. Enrollment and Review ST69 recorded

    3/25/2026legislature

  20. Enrollment and Review ST69 filed

    3/25/2026legislature

  21. Placed on Final Reading with ST69

    3/25/2026legislature

  22. von Gillern MO546 filed

    3/23/2026legislature

  23. Raybould AM2869 filed

    3/23/2026legislature

  24. Raybould AM2728 filed

    3/18/2026legislature

  25. Bostar AM2600 filed

    3/18/2026legislature

Bill Text

  • Introduced

    1/8/2026

    PDF

  • Enrolled / Slip Law

    PDF

  • Final / Enacted

    PDF

Related Bills

Back to State Legislation