Bill > LB643

This bill introduces new regulations for income tax deductions related to single-family residential properties held as investments or rentals. Specifically, the bill prohibits tax deductions for interest, taxes, or maintenance expenses for individuals owning more than thirty single-family residential properties starting January 1, 2026. The bill defines several key terms, including a "qualified nonprofit organization," which encompasses various housing-related non-profit entities like community development corporations, land banks, and community land trusts. Exemptions to the deduction prohibition include properties used as the owner's primary residence, properties owned by qualified nonprofit organizations, and properties where the owner has sold at least 10% of their portfolio to occupant residents or 5% to first-time homebuyers. The bill also provides an appeals process for property owners, allowing them to claim deductions if they can demonstrate that their properties were offered for sale at fair market rates for at least 90 days without receiving good faith offers. The overall intent appears to be discouraging large-scale property investment that may reduce housing availability for individual homeowners.

Budget and Finance

https://nebraskalegislature.gov/bills/view_bill.php?DocumentID=59613