Nebraska Governor Signs Tax Cuts and School Choice Legislation Despite Petition Efforts

Nebraska Governor Jim Pillen signed two bills into law that provide billions in property, business, and income tax relief for Nebraska businesses, farmers, ranchers, and taxpayers. LB243 increases the amount of relief granted under the Property Tax Credit Act, establishes a 3 percent annual cap on how much school districts can increase property tax requests, eliminates the 5 percent cap on the school district tax credit’s allowable growth percentage under the Nebraska Property Tax Incentive Act, and provides state aid to community colleges. LB754 reduces the top individual and business income tax rates to 3.99% by tax year 2027, delivers full tax exemption for Social Security benefits a year early in 2024, and provides tax credits related to child care, for families and providers.