Bill > LB1059

This bill makes several changes to the taxation of partnerships and small business corporations in Nebraska. Key provisions include: 1. Allowing partnerships and small business corporations to annually elect to pay income taxes at the entity level, rather than having the partners or shareholders pay taxes on their individual returns. This election must be made by the due date of the applicable tax return. 2. For electing partnerships and small business corporations, providing a refundable credit to the partners or shareholders for their share of the entity-level tax paid. This credit can be claimed in the same tax year as the election. 3. Extending deadlines for filing claims for credit or refund related to the entity-level election for tax years before 2023. 4. Requiring the notice of deficiency issued by the Tax Commissioner to include a written statement detailing the facts, circumstances, and reasons used to determine the correct tax amount. The bill aims to provide more flexibility in how partnerships and small business corporations are taxed in Nebraska and improve transparency around notices of tax deficiency.