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LEGISLATURE OF NEBRASKA
ONE HUNDRED NINTH LEGISLATURE
SECOND SESSION
LEGISLATIVE BILL 974
Introduced by Conrad, 46.
Read first time January 12, 2026
Committee: Revenue
A BILL FOR AN ACT relating to taxation; to provide for an excise tax on1
individual incomes as prescribed; and to create the Tax Equity Cash2
Fund. 3
Be it enacted by the people of the State of Nebraska,4
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Section 1. (1) For taxable years beginning or deemed to begin on or1
after January 1, 2027: 2
(a) For single taxpayers, married filing separate taxpayers, or3
estates and trusts, the following excise tax is levied on each dollar of4
individual income above $1,000,000: 9.5%, less the applicable individual5
income tax rate in section 77-2715.03 for such individual income over6
$1,000,000; 7
(b) For married filing jointly taxpayers or head of household8
taxpayers, the following excise tax is levied on each dollar of9
individual income above $2,000,000: 9.5% less the applicable individual10
income tax rate in section 77-2715.03 for such individual income over11
$2,000,000. 12
(2)(a) The Department of Revenue shall collect the excise tax levied13
under this section at least once per taxable year on a form and in a14
manner prescribed by the department. 15
(b) The department shall remit any excise tax collected under this16
section to the State Treasurer for credit to the Tax Equity Cash Fund.17
Sec. 2. (1) The Tax Equity Cash Fund is created. The fund shall be18
administered by the Department of Revenue. The fund shall consist of19
money credited to the fund pursuant to section 1 of this act. The20
department may use money in the fund to pay for costs associated with any21
duty of the department under section 1 of this act and for administration22
of the fund. 23
(2) Money in the Tax Equity Cash Fund may be transferred as approved24
by the Legislature to the: 25
(a) General Fund; 26
(b) Education Future Fund; or 27
(c) Property Tax Credit Cash Fund. 28
(3) Any money in the Tax Equity Cash Fund available for investment29
shall be invested by the state investment officer pursuant to the30
Nebraska Capital Expansion Act and the Nebraska State Funds Investment31
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Act. 1
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