Planting season is in full swing and calving season is happening. It was so nice to get some much needed rain in our area. Hopefully that hasn’t delayed planting but added some nice moisture to the soil. This time of year reminds me of a tweet that I received from the Nebraska DOT last year with this reminder–“Drivers–be on the lookout for farm equipment this planting season! If you happen to come across a farm vehicle, slowing down and practicing patience is an easy and effective way of keeping both you and the farmer safe.” Please keep an eye out for farming equipment moving on the roads and stay safe.

This past session there were many omnibus packages passed and I would like to go through several of these and share information about what was amended into the overarching bill. I plan to do this over the course of the next several newsletters. This week I would like to begin with LB937.

Bill Update

• LB937, introduced by Lincoln Senator Eliot Bostar, a family caregiver is eligible for a non refundable income tax credit equal to 50% of expenses incurred that are directly related to the care for and support of an eligible family member. Total credits are limited to $1.5 million in fiscal year (FY) 2025-26 and FY 2026-27 and $2.5 million in the following years. As amended, LB937 contains provisions of several other bills heard by the Revenue Committee this session.
• LB58, introduced by Omaha Senator John Cavanaugh, exempts diapers from state sales and use tax.
• LB1025, introduced by Senator Eliot Bostar, creates the Individuals with Intellectual and Developmental Disabilities Support Act. The provisions allow qualifying direct support professionals who care for individuals with intellectual and developmental disabilities to claim a refundable state income tax credit. Employers of direct support professionals can claim a new nonrefundable credit, as can employers that either employ an individual receiving services pursuant to a Medicaid home and community-based services waiver or provide certain services to an individual pursuant to such a waiver. The state Department of Revenue may approve a total of $1 million in credits in FY 2025-26, $1.5 million in FY 2026-27, and $2 million in later years.
• LB901, introduced by Senator Lou Ann Linehan of Elkhorn, purchases made by a nonprofit organization are exempt from state sales and use tax if the nonprofit acquires property or contracts to build, improve or repair property that will be transferred to a nonprofit whose purchases are already exempt.
• LB1158, introduced by Senator Eliot Bostar, the state treasurer will contract with a medical debt relief coordinator to purchase and discharge medical debt of eligible residents. Nebraska residents with a household income at or below 400% of the federal poverty guideline or with medical debt equal to at least 5% of the individual’s household income qualify. Contributions to the program’s fund are deductible for state income tax purposes.
• LB606, introduced by me, allows individuals, passthrough entities, corporations, estates and trusts to claim a nonrefundable credit of up to 50% of their state income tax liability on contributions they make to qualifying pregnancy help organizations. Total credits are limited to $500,000 in FY 2025-26 and $1 million in FY 2026-27 and later years.
• LB1022 (The Cast and Crew Nebraska Act), introduced by Senator Rita Sanders of Bellevue, film and television production companies may apply for a refundable income tax credit equal to at least 20% of their qualifying expenditures attributable to the production of films, documentaries, and other projects in Nebraska. The state Department of Economic Development could approve no more than $500,000 in credits in FY 2025-26 and $1 million in the following years.
• Under a bill passed last session, grocery stores, restaurants, and agricultural producers may apply for a nonrefundable state income tax credit equal to 50% of the value of food they donate to food banks, pantries or rescues, up to a maximum of $2,500. Under LB1040, introduced by Senator John Fredrickson of Omaha, the Nebraska Department of Revenue may approve $500,000 in credits each fiscal year beginning in FY 2025-26. (“Tax credits for caregivers, others created”. Unicameral Update. 18 April, 2024. http://update.legislature.ne.gov/?p=36526)

As always, I invite you to let me know your thoughts, ideas, concerns, or suggestions by calling my office at (402) 471-2716 or emailing me at jalbrecht@leg.ne.gov.