Bill > LB439

This bill adopts the Property Tax Circuit Breaker Act, which creates a new tax credit for property owners and renters to help offset property tax burdens. The bill defines a "qualifying taxpayer" as someone who owns or rents their primary Nebraska residence and lives there for at least six months of the year, with a special designation for "senior taxpayers" who are 65 or older. Starting in 2026, eligible taxpayers can receive a refundable income tax credit if their property taxes or rent exceed 5% of their federal adjusted gross income. The credit is calculated by subtracting the threshold amount from total property taxes or rent paid and then multiplying that difference by 50%. The maximum credit is $4,000 for most qualifying taxpayers and $5,000 for senior taxpayers. To claim the credit, taxpayers must apply to the Department of Revenue with details about their residence, taxes paid, income, and other required documentation. The bill also limits the property tax calculation to properties valued at up to 200% of the county's average residential property value and ensures that only one tax credit can be claimed per residence per year. The Department of Revenue is authorized to create rules and regulations to implement this new tax credit program.

Budget and Finance

https://nebraskalegislature.gov/bills/view_bill.php?DocumentID=59754