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LEGISLATURE OF NEBRASKA
ONE HUNDRED NINTH LEGISLATURE
SECOND SESSION
LEGISLATIVE BILL 1131
Introduced by Bostar, 29.
Read first time January 20, 2026
Committee: Revenue
A BILL FOR AN ACT relating to revenue and taxation; to amend section1
77-2717, Revised Statutes Cumulative Supplement, 2024, and sections2
77-202, 77-2715.07, and 77-2734.03, Revised Statutes Supplement,3
2025; to adopt the Domestic Violence and Human Trafficking Service4
Providers Tax Credit Act; to eliminate a personal property tax5
exemption and a sales and use tax exemption for data centers; to6
harmonize provisions; to provide an operative date; to repeal the7
original sections; and to outright repeal sections 77-2701.54 and8
77-2704.62, Reissue Revised Statutes of Nebraska.9
Be it enacted by the people of the State of Nebraska,10
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Section 1. Sections 1 to 4 of this act shall be known and may be1
cited as the Domestic Violence and Human Trafficking Service Providers2
Tax Credit Act. 3
Sec. 2. (1) For taxable years beginning or deemed to begin on or4
after January 1, 2027, under the Internal Revenue Code of 1986, as5
amended, there shall be allowed refundable credits against the income tax6
imposed by the Nebraska Revenue Act of 1967 as follows:7
(a) Four hundred eighty thousand dollars of tax credits to be8
distributed equally among qualifying domestic violence and sexual assault9
programs run by tribal governments; 10
(b) Three hundred thousand dollars of tax credits to be distributed11
to a statewide coalition representing nonprofit organizations that have12
an affiliation agreement with the Department of Health and Human Services13
to provide services to victims of domestic abuse under the Protection14
from Domestic Abuse Act; and 15
(c) Five million two hundred twenty thousand dollars of tax credits16
to be distributed as follows: 17
(i) Two million eighty-eight thousand dollars of tax credits to be18
distributed equally to entities described in subdivisions (a) and (b) of19
this subsection; 20
(ii) Two million five hundred five thousand six hundred dollars of21
tax credits to be distributed based on the population of the program or22
agency service area as shown by the latest federal decennial census or as23
determined by the department if such census data is not available; and24
(iii) Six hundred twenty-six thousand four hundred dollars of tax25
credits to be distributed based on the square miles of the program or26
agency service area. 27
(2) The department shall distribute all of the credits allowed under28
the Domestic Violence and Human Trafficking Service Providers Tax Credit29
Act every taxable year. 30
(3) For purposes of this section: 31
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(a) Department means the Department of Revenue;1
(b) Nonprofit organization means an organization organized under2
section 501(c)(3) of the Internal Revenue Code of 1986, as amended; and3
(c) Tribal has the same meaning as in section 71-914.02.4
Sec. 3. A credit recipient may sell all or a portion of the tax5
credit received under section 2 of this act to another taxpayer. The6
purchasing taxpayer must have received a transfer of the tax credit prior7
to the date a tax return, or amended return, claiming the tax credit is8
filed. For any tax year in which a credit is sold pursuant to this9
section, the credit recipient selling the tax credit shall notify the10
department of the sale and provide the tax identification number of the11
taxpayer purchasing the tax credit at least thirty days prior to the12
taxpayer claiming the tax credit. The notification shall be in the manner13
prescribed by the department. 14
Sec. 4. The department may adopt and promulgate rules and15
regulations to carry out the Domestic Violence and Human Trafficking16
Service Providers Tax Credit Act. 17
Sec. 5. Section 77-202, Revised Statutes Supplement, 2025, is18
amended to read: 19
77-202 (1) The following property shall be exempt from property20
taxes: 21
(a) Property of the state and its governmental subdivisions to the22
extent used or being developed for use by the state or governmental23
subdivision for a public purpose. For purposes of this subdivision:24
(i) Property of the state and its governmental subdivisions means25
(A) property held in fee title by the state or a governmental subdivision26
or (B) property beneficially owned by the state or a governmental27
subdivision in that it is used for a public purpose and is being acquired28
under a lease-purchase agreement, financing lease, or other instrument29
which provides for transfer of legal title to the property to the state30
or a governmental subdivision upon payment of all amounts due thereunder.31
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If the property to be beneficially owned by a governmental subdivision1
has a total acquisition cost that exceeds the threshold amount or will be2
used as the site of a public building with a total estimated construction3
cost that exceeds the threshold amount, then such property shall qualify4
for an exemption under this section only if the question of acquiring5
such property or constructing such public building has been submitted at6
a primary, general, or special election held within the governmental7
subdivision and has been approved by the voters of the governmental8
subdivision. For purposes of this subdivision, threshold amount means the9
greater of fifty thousand dollars or six-tenths of one percent of the10
total actual value of real and personal property of the governmental11
subdivision that will beneficially own the property as of the end of the12
governmental subdivision's prior fiscal year; and 13
(ii) Public purpose means use of the property (A) to provide public14
services with or without cost to the recipient, including the general15
operation of government, public education, public safety, transportation,16
public works, civil and criminal justice, public health and welfare,17
developments by a public housing authority, parks, culture, recreation,18
community development, and cemetery purposes, or (B) to carry out the19
duties and responsibilities conferred by law with or without20
consideration. Public purpose does not include leasing of property to a21
private party unless the lease of the property is at fair market value22
for a public purpose. Leases of property by a public housing authority to23
low-income individuals as a place of residence are for the authority's24
public purpose; 25
(b) Unleased property of the state or its governmental subdivisions26
which is not being used or developed for use for a public purpose but27
upon which a payment in lieu of taxes is paid for public safety, rescue,28
and emergency services and road or street construction or maintenance29
services to all governmental units providing such services to the30
property. Except as provided in Article VIII, section 11, of the31
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Constitution of Nebraska, the payment in lieu of taxes shall be based on1
the proportionate share of the cost of providing public safety, rescue,2
or emergency services and road or street construction or maintenance3
services unless a general policy is adopted by the governing body of the4
governmental subdivision providing such services which provides for a5
different method of determining the amount of the payment in lieu of6
taxes. The governing body may adopt a general policy by ordinance or7
resolution for determining the amount of payment in lieu of taxes by8
majority vote after a hearing on the ordinance or resolution. Such9
ordinance or resolution shall nevertheless result in an equitable10
contribution for the cost of providing such services to the exempt11
property; 12
(c) Property owned by and used exclusively for agricultural and13
horticultural societies; 14
(d)(i) Property owned by educational, religious, charitable, or15
cemetery organizations, or any organization for the exclusive benefit of16
any such educational, religious, charitable, or cemetery organization,17
and used exclusively for educational, religious, charitable, or cemetery18
purposes, when such property is not (A) owned or used for financial gain19
or profit to either the owner or user, (B) used for the sale of alcoholic20
liquors for more than twenty hours per week, or (C) owned or used by an21
organization which discriminates in membership or employment based on22
race, color, or national origin. 23
(ii) For purposes of subdivision (1)(d) of this section:24
(A) Educational organization means (I) an institution operated25
exclusively for the purpose of offering regular courses with systematic26
instruction in academic, vocational, or technical subjects or assisting27
students through services relating to the origination, processing, or28
guarantying of federally reinsured student loans for higher education,29
(II) a museum or historical society operated exclusively for the benefit30
and education of the public, or (III) a nonprofit organization that owns31
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or operates a child care facility; and 1
(B) Charitable organization includes (I) an organization operated2
exclusively for the purpose of the mental, social, or physical benefit of3
the public or an indefinite number of persons and (II) a fraternal4
benefit society organized and licensed under sections 44-1072 to5
44-10,109. 6
(iii) The property tax exemption authorized in subdivision (1)(d)(i)7
of this section shall apply to any for-profit skilled nursing facility,8
for-profit nursing facility, or for-profit assisted-living facility that9
provides housing for medicaid beneficiaries, except that the exemption10
amount for such property shall be a percentage of the property taxes that11
would otherwise be due. Such percentage shall be equal to the average12
percentage of occupied beds in the facility provided to medicaid13
beneficiaries over the most recent three-year period. This subdivision14
shall not be construed to modify, limit, or reduce any property tax15
exemption provided to a nonprofit skilled nursing facility, nonprofit16
nursing facility, or nonprofit assisted-living facility pursuant to17
subdivision (1)(d)(i) of this section. For purposes of this subdivision,18
skilled nursing facility has the same meaning as in section 71-429,19
nursing facility has the same meaning as in section 71-424, and assisted-20
living facility has the same meaning as in section 71-5903.21
(iv) The property tax exemption authorized in subdivision (1)(d)(i)22
of this section shall apply to a building that (A) is owned by a23
charitable organization, (B) is made available to students in attendance24
at an educational institution, and (C) is recognized by such educational25
institution as approved student housing, except that the exemption shall26
only apply to the commons area of such building, including any common27
rooms and cooking and eating facilities; 28
(e) Household goods and personal effects not owned or used for29
financial gain or profit to either the owner or user; and30
(f) A portion of the property owned by a taxpayer as provided in the31
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Recreational Trail Easement Property Tax Exemption Act.1
(2) The increased value of land by reason of shade and ornamental2
trees planted along the highway shall not be taken into account in the3
valuation of land. 4
(3) Tangible personal property which is not depreciable tangible5
personal property as defined in section 77-119 shall be exempt from6
property tax. 7
(4) Motor vehicles, trailers, and semitrailers required to be8
registered for operation on the highways of this state shall be exempt9
from payment of property taxes. 10
(5) Business and agricultural inventory shall be exempt from the11
personal property tax. For purposes of this subsection, business12
inventory includes personal property owned for purposes of leasing or13
renting such property to others for financial gain only if the personal14
property is of a type which in the ordinary course of business is leased15
or rented thirty days or less and may be returned at the option of the16
lessee or renter at any time and the personal property is of a type which17
would be considered household goods or personal effects if owned by an18
individual. All other personal property owned for purposes of leasing or19
renting such property to others for financial gain shall not be20
considered business inventory. 21
(6) Any personal property exempt pursuant to subsection (2) of22
section 77-4105 or section 77-5209.02 shall be exempt from the personal23
property tax. 24
(7) Livestock shall be exempt from the personal property tax.25
(8) Any personal property exempt pursuant to the Nebraska Advantage26
Act or the ImagiNE Nebraska Act shall be exempt from the personal27
property tax. 28
(9) Any depreciable tangible personal property used directly in the29
generation of electricity using wind as the fuel source shall be exempt30
from the property tax levied on depreciable tangible personal property.31
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Any depreciable tangible personal property used directly in the1
generation of electricity using solar, biomass, or landfill gas as the2
fuel source shall be exempt from the property tax levied on depreciable3
tangible personal property if such depreciable tangible personal property4
was installed on or after January 1, 2016, and has a nameplate capacity5
of one hundred kilowatts or more. Depreciable tangible personal property6
used directly in the generation of electricity using wind, solar,7
biomass, or landfill gas as the fuel source includes, but is not limited8
to, wind turbines, rotors and blades, towers, solar panels, trackers,9
generating equipment, transmission components, substations, supporting10
structures or racks, inverters, and other system components such as11
wiring, control systems, switchgears, and generator step-up transformers.12
(10) Any tangible personal property that is acquired by a person13
operating a data center located in this state, that is assembled,14
engineered, processed, fabricated, manufactured into, attached to, or15
incorporated into other tangible personal property, both in component16
form or that of an assembled product, for the purpose of subsequent use17
at a physical location outside this state by the person operating a data18
center shall be exempt from the personal property tax. Such exemption19
extends to keeping, retaining, or exercising any right or power over20
tangible personal property in this state for the purpose of subsequently21
transporting it outside this state for use thereafter outside this state.22
For purposes of this subsection, data center means computers, supporting23
equipment, and other organized assembly of hardware or software that are24
designed to centralize the storage, management, or dissemination of data25
and information, environmentally controlled structures or facilities or26
interrelated structures or facilities that provide the infrastructure for27
housing the equipment, such as raised flooring, electricity supply,28
communication and data lines, Internet access, cooling, security, and29
fire suppression, and any building housing the foregoing.30
(10) (11) For tax years prior to tax year 2020, each person who owns31
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property required to be reported to the county assessor under section1
77-1201 shall be allowed an exemption amount as provided in the Personal2
Property Tax Relief Act. For tax years prior to tax year 2020, each3
person who owns property required to be valued by the state as provided4
in section 77-601, 77-682, 77-801, or 77-1248 shall be allowed a5
compensating exemption factor as provided in the Personal Property Tax6
Relief Act. 7
(11)(a) (12)(a) Broadband equipment shall be exempt from the8
personal property tax if such broadband equipment is:9
(i) Deployed in an area funded in whole or in part by funds from the10
Broadband Equity, Access, and Deployment Program, authorized by the11
federal Infrastructure Investment and Jobs Act, Public Law 117-58; or12
(ii) Deployed in a qualified census tract located within the13
corporate limits of a city of the metropolitan class and being utilized14
to provide end-users with access to the Internet at speeds of at least15
one hundred megabits per second for downloading and at least one hundred16
megabits per second for uploading. 17
(b) An owner of broadband equipment seeking an exemption under this18
section shall apply for an exemption to the county assessor on or before19
December 31 of the year preceding the year for which the exemption is to20
begin. If the broadband equipment meets the criteria described in this21
subsection, the county assessor shall approve the application within22
thirty calendar days after receiving the application. The application23
shall be on forms prescribed by the Tax Commissioner.24
(c) For purposes of this subsection: 25
(i) Broadband communications service means telecommunications26
service as defined in section 86-121, video programming as defined in 4727
U.S.C. 522, as such section existed on January 1, 2024, or Internet28
access as defined in section 1104 of the federal Internet Tax Freedom29
Act, Public Law 105-277; 30
(ii) Broadband equipment means machinery or equipment used to31
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provide broadband communications service and includes, but is not limited1
to, wires, cables, fiber, conduits, antennas, poles, switches, routers,2
amplifiers, rectifiers, repeaters, receivers, multiplexers, duplexers,3
transmitters, circuit cards, insulating and protective materials and4
cases, power equipment, backup power equipment, diagnostic equipment,5
storage devices, modems, and other general central office or headend6
equipment, such as channel cards, frames, and cabinets, or equipment used7
in successor technologies, including items used to monitor, test,8
maintain, enable, or facilitate qualifying equipment, machinery,9
software, ancillary components, appurtenances, accessories, or other10
infrastructure that is used in whole or in part to provide broadband11
communications service. Machinery or equipment used to produce broadband12
communications service does not include personal consumer electronics,13
including, but not limited to, smartphones, computers, and tablets; and14
(iii) Qualified census tract means a qualified census tract as15
defined in 26 U.S.C. 42(d)(5)(B)(ii)(I), as such section existed on16
January 1, 2024. 17
Sec. 6. Section 77-2715.07, Revised Statutes Supplement, 2025, is18
amended to read: 19
77-2715.07 (1) There shall be allowed to qualified resident20
individuals as a nonrefundable credit against the income tax imposed by21
the Nebraska Revenue Act of 1967: 22
(a) A credit equal to the federal credit allowed under section 22 of23
the Internal Revenue Code; and 24
(b) A credit for taxes paid to another state as provided in section25
77-2730. 26
(2) There shall be allowed to qualified resident individuals against27
the income tax imposed by the Nebraska Revenue Act of 1967:28
(a) For returns filed reporting federal adjusted gross incomes of29
greater than twenty-nine thousand dollars, a nonrefundable credit equal30
to twenty-five percent of the federal credit allowed under section 21 of31
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the Internal Revenue Code of 1986, as amended, except that for taxable1
years beginning or deemed to begin on or after January 1, 2015, such2
nonrefundable credit shall be allowed only if the individual would have3
received the federal credit allowed under section 21 of the code after4
adding back in any carryforward of a net operating loss that was deducted5
pursuant to such section in determining eligibility for the federal6
credit; 7
(b) For returns filed reporting federal adjusted gross income of8
twenty-nine thousand dollars or less, a refundable credit equal to a9
percentage of the federal credit allowable under section 21 of the10
Internal Revenue Code of 1986, as amended, whether or not the federal11
credit was limited by the federal tax liability. The percentage of the12
federal credit shall be one hundred percent for incomes not greater than13
twenty-two thousand dollars, and the percentage shall be reduced by ten14
percent for each one thousand dollars, or fraction thereof, by which the15
reported federal adjusted gross income exceeds twenty-two thousand16
dollars, except that for taxable years beginning or deemed to begin on or17
after January 1, 2015, such refundable credit shall be allowed only if18
the individual would have received the federal credit allowed under19
section 21 of the code after adding back in any carryforward of a net20
operating loss that was deducted pursuant to such section in determining21
eligibility for the federal credit; 22
(c) A refundable credit as provided in section 77-5209.01 for23
individuals who qualify for an income tax credit as a qualified beginning24
farmer or livestock producer under the Beginning Farmer Tax Credit Act25
for all taxable years beginning or deemed to begin on or after January 1,26
2006, under the Internal Revenue Code of 1986, as amended;27
(d) A refundable credit for individuals who qualify for an income28
tax credit under the Adoption Tax Credit Act, the Angel Investment Tax29
Credit Act, the Nebraska Advantage Microenterprise Tax Credit Act, the30
Nebraska Advantage Research and Development Act, the Reverse Osmosis31
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System Tax Credit Act, or the Volunteer Emergency Responders Incentive1
Act; 2
(e) A refundable credit equal to ten percent of the federal credit3
allowed under section 32 of the Internal Revenue Code of 1986, as4
amended, except that for taxable years beginning or deemed to begin on or5
after January 1, 2015, such refundable credit shall be allowed only if6
the individual would have received the federal credit allowed under7
section 32 of the code after adding back in any carryforward of a net8
operating loss that was deducted pursuant to such section in determining9
eligibility for the federal credit; and 10
(f) A refundable credit as provided in section 77-7203 for11
individuals who qualify for an income tax credit under the Child Care Tax12
Credit Act for all taxable years beginning or deemed to begin on or after13
January 1, 2024, under the Internal Revenue Code of 1986, as amended.14
(3) There shall be allowed to all individuals as a nonrefundable15
credit against the income tax imposed by the Nebraska Revenue Act of16
1967: 17
(a) A credit for personal exemptions allowed under section18
77-2716.01; 19
(b) A credit for (i) contributions to programs or projects certified20
for tax credit status as provided in the Creating High Impact Economic21
Futures Act and (ii) contributions to certified community betterment22
programs as provided in the Community Development Assistance Act. Each23
partner, each shareholder of an electing subchapter S corporation, each24
beneficiary of an estate or trust, or each member of a limited liability25
company shall report his or her share of the credit in the same manner26
and proportion as he or she reports the partnership, subchapter S27
corporation, estate, trust, or limited liability company income;28
(c) A credit for investment in a biodiesel facility as provided in29
section 77-27,236; 30
(d) A credit as provided in the New Markets Job Growth Investment31
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Act; 1
(e) A credit as provided in the Nebraska Job Creation and Mainstreet2
Revitalization Act; 3
(f) A credit to employers as provided in sections 77-27,238 and4
77-27,240; 5
(g) A credit as provided in the Affordable Housing Tax Credit Act;6
(h) A credit to grocery store retailers, restaurants, and7
agricultural producers as provided in section 77-27,241;8
(i) A credit as provided in the Sustainable Aviation Fuel Tax Credit9
Act; 10
(j) A credit as provided in the Nebraska Shortline Rail11
Modernization Act; 12
(k) A credit as provided in the Nebraska Pregnancy Help Act; and13
(l) A credit as provided in the Caregiver Tax Credit Act.14
(4) There shall be allowed as a credit against the income tax15
imposed by the Nebraska Revenue Act of 1967: 16
(a) A credit to all resident estates and trusts for taxes paid to17
another state as provided in section 77-2730; 18
(b) A credit to all estates and trusts for (i) contributions to19
programs or projects certified for tax credit status as provided in the20
Creating High Impact Economic Futures Act and (ii) contributions to21
certified community betterment programs as provided in the Community22
Development Assistance Act; and 23
(c) A refundable credit for individuals who qualify for an income24
tax credit as an owner of agricultural assets under the Beginning Farmer25
Tax Credit Act for all taxable years beginning or deemed to begin on or26
after January 1, 2009, under the Internal Revenue Code of 1986, as27
amended. The credit allowed for each partner, shareholder, member, or28
beneficiary of a partnership, corporation, limited liability company, or29
estate or trust qualifying for an income tax credit as an owner of30
agricultural assets under the Beginning Farmer Tax Credit Act shall be31
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equal to the partner's, shareholder's, member's, or beneficiary's portion1
of the amount of tax credit distributed pursuant to subsection (6) of2
section 77-5211. 3
(5)(a) For all taxable years beginning on or after January 1, 2007,4
and before January 1, 2009, under the Internal Revenue Code of 1986, as5
amended, there shall be allowed to each partner, shareholder, member, or6
beneficiary of a partnership, subchapter S corporation, limited liability7
company, or estate or trust a nonrefundable credit against the income tax8
imposed by the Nebraska Revenue Act of 1967 equal to fifty percent of the9
partner's, shareholder's, member's, or beneficiary's portion of the10
amount of franchise tax paid to the state under sections 77-3801 to11
77-3807 by a financial institution. 12
(b) For all taxable years beginning on or after January 1, 2009,13
under the Internal Revenue Code of 1986, as amended, there shall be14
allowed to each partner, shareholder, member, or beneficiary of a15
partnership, subchapter S corporation, limited liability company, or16
estate or trust a nonrefundable credit against the income tax imposed by17
the Nebraska Revenue Act of 1967 equal to the partner's, shareholder's,18
member's, or beneficiary's portion of the amount of franchise tax paid to19
the state under sections 77-3801 to 77-3807 by a financial institution.20
(c) Each partner, shareholder, member, or beneficiary shall report21
his or her share of the credit in the same manner and proportion as he or22
she reports the partnership, subchapter S corporation, limited liability23
company, or estate or trust income. If any partner, shareholder, member,24
or beneficiary cannot fully utilize the credit for that year, the credit25
may not be carried forward or back. 26
(6) There shall be allowed to all individuals nonrefundable credits27
against the income tax imposed by the Nebraska Revenue Act of 1967 as28
provided in section 77-3604 and refundable credits against the income tax29
imposed by the Nebraska Revenue Act of 1967 as provided in section30
77-3605. 31
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(7)(a) For taxable years beginning or deemed to begin on or after1
January 1, 2020, and before January 1, 2032, under the Internal Revenue2
Code of 1986, as amended, a nonrefundable credit against the income tax3
imposed by the Nebraska Revenue Act of 1967 in the amount of five4
thousand dollars shall be allowed to any individual who purchases a5
residence during the taxable year if such residence:6
(i) Is located within an area that has been declared an extremely7
blighted area under section 18-2101.02; 8
(ii) Is the individual's primary residence; and9
(iii) Was not purchased from a family member of the individual or a10
family member of the individual's spouse. 11
(b) The credit provided in this subsection shall be claimed for the12
taxable year in which the residence is purchased. If the individual13
cannot fully utilize the credit for such year, the credit may be carried14
forward to subsequent taxable years until fully utilized.15
(c) No more than one credit may be claimed under this subsection16
with respect to a single residence. 17
(d) The credit provided in this subsection shall be subject to18
recapture by the Department of Revenue if the individual claiming the19
credit sells or otherwise transfers the residence or quits using the20
residence as his or her primary residence within five years after the end21
of the taxable year in which the credit was claimed.22
(e) For purposes of this subsection, family member means an23
individual's spouse, child, parent, brother, sister, grandchild, or24
grandparent, whether by blood, marriage, or adoption.25
(8) There shall be allowed to all individuals refundable credits26
against the income tax imposed by the Nebraska Revenue Act of 1967 as27
provided in the Cast and Crew Nebraska Act, the Domestic Violence and28
Human Trafficking Service Providers Tax Credit Act, the Nebraska29
Biodiesel Tax Credit Act, the Nebraska Higher Blend Tax Credit Act, the30
Nebraska Property Tax Incentive Act, the Relocation Incentive Act, and31
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the Renewable Chemical Production Tax Credit Act. 1
(9)(a) For taxable years beginning or deemed to begin on or after2
January 1, 2022, under the Internal Revenue Code of 1986, as amended, a3
refundable credit against the income tax imposed by the Nebraska Revenue4
Act of 1967 shall be allowed to the parent of a stillborn child if:5
(i) A fetal death certificate is filed pursuant to subsection (1) of6
section 71-606 for such child; 7
(ii) Such child had advanced to at least the twentieth week of8
gestation; and 9
(iii) Such child would have been a dependent of the individual10
claiming the credit. 11
(b) The amount of the credit shall be two thousand dollars.12
(c) The credit shall be allowed for the taxable year in which the13
stillbirth occurred. 14
(10) There shall be allowed to all individuals nonrefundable credits15
against the income tax imposed by the Nebraska Revenue Act of 1967 as16
provided in section 77-7204. 17
(11) There shall be allowed to all individuals refundable credits18
against the income tax imposed by the Nebraska Revenue Act of 1967 as19
provided in section 77-3157 and nonrefundable credits against the income20
tax imposed by the Nebraska Revenue Act of 1967 as provided in sections21
77-3156, 77-3158, and 77-3159. 22
Sec. 7. Section 77-2717, Revised Statutes Cumulative Supplement,23
2024, is amended to read: 24
77-2717 (1)(a)(i) For taxable years beginning or deemed to begin25
before January 1, 2014, the tax imposed on all resident estates and26
trusts shall be a percentage of the federal taxable income of such27
estates and trusts as modified in section 77-2716, plus a percentage of28
the federal alternative minimum tax and the federal tax on premature or29
lump-sum distributions from qualified retirement plans. The additional30
taxes shall be recomputed by (A) substituting Nebraska taxable income for31
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federal taxable income, (B) calculating what the federal alternative1
minimum tax would be on Nebraska taxable income and adjusting such2
calculations for any items which are reflected differently in the3
determination of federal taxable income, and (C) applying Nebraska rates4
to the result. The federal credit for prior year minimum tax, after the5
recomputations required by the Nebraska Revenue Act of 1967, and the6
credits provided in the Nebraska Advantage Microenterprise Tax Credit Act7
and the Nebraska Advantage Research and Development Act shall be allowed8
as a reduction in the income tax due. A refundable income tax credit9
shall be allowed for all resident estates and trusts under the Angel10
Investment Tax Credit Act, the Nebraska Advantage Microenterprise Tax11
Credit Act, and the Nebraska Advantage Research and Development Act. A12
nonrefundable income tax credit shall be allowed for all resident estates13
and trusts as provided in the New Markets Job Growth Investment Act.14
(ii) For taxable years beginning or deemed to begin on or after15
January 1, 2014, the tax imposed on all resident estates and trusts shall16
be a percentage of the federal taxable income of such estates and trusts17
as modified in section 77-2716, plus a percentage of the federal tax on18
premature or lump-sum distributions from qualified retirement plans. The19
additional taxes shall be recomputed by substituting Nebraska taxable20
income for federal taxable income and applying Nebraska rates to the21
result. The credits provided in the Nebraska Advantage Microenterprise22
Tax Credit Act and the Nebraska Advantage Research and Development Act23
shall be allowed as a reduction in the income tax due. A refundable24
income tax credit shall be allowed for all resident estates and trusts25
under the Angel Investment Tax Credit Act, the Cast and Crew Nebraska26
Act, the Domestic Violence and Human Trafficking Service Providers Tax27
Credit Act, the Nebraska Advantage Microenterprise Tax Credit Act, the28
Nebraska Advantage Research and Development Act, the Nebraska Biodiesel29
Tax Credit Act, the Nebraska Higher Blend Tax Credit Act, the Nebraska30
Property Tax Incentive Act, the Relocation Incentive Act, and the31
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Renewable Chemical Production Tax Credit Act. A nonrefundable income tax1
credit shall be allowed for all resident estates and trusts as provided2
in the Nebraska Job Creation and Mainstreet Revitalization Act, the New3
Markets Job Growth Investment Act, the School Readiness Tax Credit Act,4
the Child Care Tax Credit Act, the Affordable Housing Tax Credit Act, the5
Sustainable Aviation Fuel Tax Credit Act, the Nebraska Shortline Rail6
Modernization Act, the Nebraska Pregnancy Help Act, the Individuals with7
Intellectual and Developmental Disabilities Support Act, and sections8
77-27,238, 77-27,240, and 77-27,241. 9
(b) The tax imposed on all nonresident estates and trusts shall be10
the portion of the tax imposed on resident estates and trusts which is11
attributable to the income derived from sources within this state. The12
tax which is attributable to income derived from sources within this13
state shall be determined by multiplying the liability to this state for14
a resident estate or trust with the same total income by a fraction, the15
numerator of which is the nonresident estate's or trust's Nebraska income16
as determined by sections 77-2724 and 77-2725 and the denominator of17
which is its total federal income after first adjusting each by the18
amounts provided in section 77-2716. The federal credit for prior year19
minimum tax, after the recomputations required by the Nebraska Revenue20
Act of 1967, reduced by the percentage of the total income which is21
attributable to income from sources outside this state, and the credits22
provided in the Nebraska Advantage Microenterprise Tax Credit Act and the23
Nebraska Advantage Research and Development Act shall be allowed as a24
reduction in the income tax due. A refundable income tax credit shall be25
allowed for all nonresident estates and trusts under the Angel Investment26
Tax Credit Act, the Cast and Crew Nebraska Act, the Domestic Violence and27
Human Trafficking Service Providers Tax Credit Act, the Nebraska28
Advantage Microenterprise Tax Credit Act, the Nebraska Advantage Research29
and Development Act, the Nebraska Biodiesel Tax Credit Act, the Nebraska30
Higher Blend Tax Credit Act, the Nebraska Property Tax Incentive Act, the31
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Relocation Incentive Act, and the Renewable Chemical Production Tax1
Credit Act. A nonrefundable income tax credit shall be allowed for all2
nonresident estates and trusts as provided in the Nebraska Job Creation3
and Mainstreet Revitalization Act, the New Markets Job Growth Investment4
Act, the School Readiness Tax Credit Act, the Child Care Tax Credit Act,5
the Affordable Housing Tax Credit Act, the Sustainable Aviation Fuel Tax6
Credit Act, the Nebraska Shortline Rail Modernization Act, the Nebraska7
Pregnancy Help Act, the Individuals with Intellectual and Developmental8
Disabilities Support Act, and sections 77-27,238, 77-27,240, and9
77-27,241. 10
(2) In all instances wherein a fiduciary income tax return is11
required under the provisions of the Internal Revenue Code, a Nebraska12
fiduciary return shall be filed, except that a fiduciary return shall not13
be required to be filed regarding a simple trust if all of the trust's14
beneficiaries are residents of the State of Nebraska, all of the trust's15
income is derived from sources in this state, and the trust has no16
federal tax liability. The fiduciary shall be responsible for making the17
return for the estate or trust for which he or she acts, whether the18
income be taxable to the estate or trust or to the beneficiaries thereof.19
The fiduciary shall include in the return a statement of each20
beneficiary's distributive share of net income when such income is21
taxable to such beneficiaries. 22
(3) The beneficiaries of such estate or trust who are residents of23
this state shall include in their income their proportionate share of24
such estate's or trust's federal income and shall reduce their Nebraska25
tax liability by their proportionate share of the credits as provided in26
the Angel Investment Tax Credit Act, the Nebraska Advantage27
Microenterprise Tax Credit Act, the Nebraska Advantage Research and28
Development Act, the Nebraska Job Creation and Mainstreet Revitalization29
Act, the New Markets Job Growth Investment Act, the School Readiness Tax30
Credit Act, the Child Care Tax Credit Act, the Affordable Housing Tax31
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Credit Act, the Nebraska Biodiesel Tax Credit Act, the Nebraska Higher1
Blend Tax Credit Act, the Nebraska Property Tax Incentive Act, the2
Relocation Incentive Act, the Renewable Chemical Production Tax Credit3
Act, the Sustainable Aviation Fuel Tax Credit Act, the Nebraska Shortline4
Rail Modernization Act, the Cast and Crew Nebraska Act, the Nebraska5
Pregnancy Help Act, the Individuals with Intellectual and Developmental6
Disabilities Support Act, the Domestic Violence and Human Trafficking7
Service Providers Tax Credit Act, and sections 77-27,238, 77-27,240, and8
77-27,241. There shall be allowed to a beneficiary a refundable income9
tax credit under the Beginning Farmer Tax Credit Act for all taxable10
years beginning or deemed to begin on or after January 1, 2001, under the11
Internal Revenue Code of 1986, as amended. 12
(4) If any beneficiary of such estate or trust is a nonresident13
during any part of the estate's or trust's taxable year, he or she shall14
file a Nebraska income tax return which shall include (a) in Nebraska15
adjusted gross income that portion of the estate's or trust's Nebraska16
income, as determined under sections 77-2724 and 77-2725, allocable to17
his or her interest in the estate or trust and (b) a reduction of the18
Nebraska tax liability by his or her proportionate share of the credits19
as provided in the Angel Investment Tax Credit Act, the Nebraska20
Advantage Microenterprise Tax Credit Act, the Nebraska Advantage Research21
and Development Act, the Nebraska Job Creation and Mainstreet22
Revitalization Act, the New Markets Job Growth Investment Act, the School23
Readiness Tax Credit Act, the Child Care Tax Credit Act, the Affordable24
Housing Tax Credit Act, the Nebraska Biodiesel Tax Credit Act, the25
Nebraska Higher Blend Tax Credit Act, the Nebraska Property Tax Incentive26
Act, the Relocation Incentive Act, the Renewable Chemical Production Tax27
Credit Act, the Sustainable Aviation Fuel Tax Credit Act, the Nebraska28
Shortline Rail Modernization Act, the Cast and Crew Nebraska Act, the29
Nebraska Pregnancy Help Act, the Individuals with Intellectual and30
Developmental Disabilities Support Act, the Domestic Violence and Human31
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Trafficking Service Providers Tax Credit Act, and sections 77-27,238,1
77-27,240, and 77-27,241 and shall execute and forward to the fiduciary,2
on or before the original due date of the Nebraska fiduciary return, an3
agreement which states that he or she will file a Nebraska income tax4
return and pay income tax on all income derived from or connected with5
sources in this state, and such agreement shall be attached to the6
Nebraska fiduciary return for such taxable year. 7
(5) In the absence of the nonresident beneficiary's executed8
agreement being attached to the Nebraska fiduciary return, the estate or9
trust shall remit a portion of such beneficiary's income which was10
derived from or attributable to Nebraska sources with its Nebraska return11
for the taxable year. For taxable years beginning or deemed to begin12
before January 1, 2013, the amount of remittance, in such instance, shall13
be the highest individual income tax rate determined under section14
77-2715.02 multiplied by the nonresident beneficiary's share of the15
estate or trust income which was derived from or attributable to sources16
within this state. For taxable years beginning or deemed to begin on or17
after January 1, 2013, the amount of remittance, in such instance, shall18
be the highest individual income tax rate determined under section19
77-2715.03 multiplied by the nonresident beneficiary's share of the20
estate or trust income which was derived from or attributable to sources21
within this state. The amount remitted shall be allowed as a credit22
against the Nebraska income tax liability of the beneficiary.23
(6) The Tax Commissioner may allow a nonresident beneficiary to not24
file a Nebraska income tax return if the nonresident beneficiary's only25
source of Nebraska income was his or her share of the estate's or trust's26
income which was derived from or attributable to sources within this27
state, the nonresident did not file an agreement to file a Nebraska28
income tax return, and the estate or trust has remitted the amount29
required by subsection (5) of this section on behalf of such nonresident30
beneficiary. The amount remitted shall be retained in satisfaction of the31
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Nebraska income tax liability of the nonresident beneficiary.1
(7) For purposes of this section, unless the context otherwise2
requires, simple trust shall mean any trust instrument which (a) requires3
that all income shall be distributed currently to the beneficiaries, (b)4
does not allow amounts to be paid, permanently set aside, or used in the5
tax year for charitable purposes, and (c) does not distribute amounts6
allocated in the corpus of the trust. Any trust which does not qualify as7
a simple trust shall be deemed a complex trust. 8
(8) For purposes of this section, any beneficiary of an estate or9
trust that is a grantor trust of a nonresident shall be disregarded and10
this section shall apply as though the nonresident grantor was the11
beneficiary. 12
Sec. 8. Section 77-2734.03, Revised Statutes Supplement, 2025, is13
amended to read: 14
77-2734.03 (1)(a) For taxable years commencing prior to January 1,15
1997, any (i) insurer paying a tax on premiums and assessments pursuant16
to section 77-908 or 81-523, (ii) electric cooperative organized under17
the Joint Public Power Authority Act, or (iii) credit union shall be18
credited, in the computation of the tax due under the Nebraska Revenue19
Act of 1967, with the amount paid during the taxable year as taxes on20
such premiums and assessments and taxes in lieu of intangible tax.21
(b) For taxable years commencing on or after January 1, 1997, any22
insurer paying a tax on premiums and assessments pursuant to section23
77-908 or 81-523, any electric cooperative organized under the Joint24
Public Power Authority Act, or any credit union shall be credited, in the25
computation of the tax due under the Nebraska Revenue Act of 1967, with26
the amount paid during the taxable year as (i) taxes on such premiums and27
assessments included as Nebraska premiums and assessments under section28
77-2734.05 and (ii) taxes in lieu of intangible tax.29
(c) For taxable years commencing or deemed to commence prior to, on,30
or after January 1, 1998, any insurer paying a tax on premiums and31
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assessments pursuant to section 77-908 or 81-523 shall be credited, in1
the computation of the tax due under the Nebraska Revenue Act of 1967,2
with the amount paid during the taxable year as assessments allowed as an3
offset against premium and related retaliatory tax liability pursuant to4
section 44-4233. 5
(2) There shall be allowed to corporate taxpayers a tax credit for6
(a) contributions to programs or projects certified for tax credit status7
as provided in the Creating High Impact Economic Futures Act and (b)8
contributions to certified community betterment programs as provided in9
the Community Development Assistance Act. 10
(3) There shall be allowed to corporate taxpayers a refundable11
income tax credit under the Beginning Farmer Tax Credit Act for all12
taxable years beginning or deemed to begin on or after January 1, 2001,13
under the Internal Revenue Code of 1986, as amended.14
(4) The changes made to this section by Laws 2004, LB 983, apply to15
motor fuels purchased during any tax year ending or deemed to end on or16
after January 1, 2005, under the Internal Revenue Code of 1986, as17
amended. 18
(5) There shall be allowed to corporate taxpayers refundable income19
tax credits under the Nebraska Advantage Microenterprise Tax Credit Act,20
the Cast and Crew Nebraska Act, the Domestic Violence and Human21
Trafficking Service Providers Tax Credit Act, the Nebraska Advantage22
Research and Development Act, the Nebraska Biodiesel Tax Credit Act, the23
Nebraska Higher Blend Tax Credit Act, the Nebraska Property Tax Incentive24
Act, the Relocation Incentive Act, and the Renewable Chemical Production25
Tax Credit Act. 26
(6) There shall be allowed to corporate taxpayers a nonrefundable27
income tax credit for investment in a biodiesel facility as provided in28
section 77-27,236. 29
(7) There shall be allowed to corporate taxpayers a nonrefundable30
income tax credit as provided in the Nebraska Job Creation and Mainstreet31
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Revitalization Act, the New Markets Job Growth Investment Act, the School1
Readiness Tax Credit Act, the Child Care Tax Credit Act, the Affordable2
Housing Tax Credit Act, the Sustainable Aviation Fuel Tax Credit Act, the3
Nebraska Shortline Rail Modernization Act, the Nebraska Pregnancy Help4
Act, the Individuals with Intellectual and Developmental Disabilities5
Support Act, and sections 77-27,238, 77-27,240, and 77-27,241.6
Sec. 9. This act becomes operative on January 1, 2027.7
Sec. 10. Original section 77-2717, Revised Statutes Cumulative8
Supplement, 2024, and sections 77-202, 77-2715.07, and 77-2734.03,9
Revised Statutes Supplement, 2025, are repealed. 10
Sec. 11. The following sections are outright repealed: Sections11
77-2701.54 and 77-2704.62, Reissue Revised Statutes of Nebraska.12
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