We are now in the final week of the First Session of the 108th Legislature. At the time of publishing, we will have two legislative days remaining before the Legislature adjourns Sine Die. It has been a busy week passing a number of significant bills that were included in the overall tax reduction package. The next three bills are part of that package.

LB243e passed, in part, it increased the funding for the Property Tax Credit Fund from $313 million to $560 million. It also requires the fund to grow equal to the increase in assessed value of real property in the state. The bill further creates a new mechanism for the percentage of annual increase that a school district may request in regards to their levy authority.

LB583e was passed and provides $1,500 per student in foundational aid to each school district. Currently, roughly 75% of schools in the state do not receive funding from the state and instead rely on property taxes. The bill also expands State funding for special education by reimbursing 80% of special education needs. By providing this state funding, schools can reduce their reliance on property taxes. It also provides the mechanism for the utilization of LB681, the Education Future Fund that was established with over one billion dollars in support of future public school needs.

LB754e was also passed by the Legislature and provides income tax relief. The bill provides a gradual reduction in income taxes for the top two tax brackets that will ultimately stop at 3.99% by 2027 tax year. By the time the bill is fully implemented there will be a substantial reduction in income tax for individuals making more than $18,000 per year, married couples making more $36,000 per year, and heads of households making more than $28,800 per year.

Other bills passed include B683e creating the Nebraska Broadband Office which will be responsible for managing and directing federal funds received by the state for the Broadband Equity, Access, and Deployment Program. These funds are specifically targeted for the hardest to reach areas in the state with broadband services. The broadband office will also be responsible for developing the Nebraska broadband access map. This map will be crucial in identifying which areas of the state lack access in order to strategically deploy broadband.

In addition, LB565e, the Natural Resources priority bill passed, provides funds to the Department of Economic Development to provide grants to the Hydrogen Hub Industry Working Group to continue their work on applying for a hydrogen hub designation. LB565 includes eight additional bills from the committee. The bill also includes LB217, LB289, LB395, LB400, LB425, LB567, LB568, and LB723.
For additional or more specific information on these bills or others please visit nebraskalegislature.gov. You may also reach my office at 402-471-2719 or bbostelman@leg.ne.gov.