Bill > LB851

This bill modifies Nebraska's income tax laws concerning income and losses from S-corporations and limited liability companies (LLCs). Specifically, it amends Section 77-2716 to change the effective date for excluding income or loss from S-corporations and LLCs that is not connected to Nebraska sources, moving the cutoff from January 1, 2026, to before January 1, 2026, for taxable years beginning or deemed to begin before that date. It also amends Section 77-2734.01 to clarify how residents and nonresidents report income from these entities, with a distinction made for taxable years beginning on or after January 1, 2026, where income from S-corporations and LLCs will be included in Nebraska taxable income to the extent it's included in federal gross income, along with fair compensation for services rendered to the entity. The bill also repeals the original versions of these sections.

Budget and Finance

https://nebraskalegislature.gov/bills/view_bill.php?DocumentID=63100