Bill Summary – FastDemocracy

LB33                                                                        LB33
                                                                      2024
                               LEGISLATURE OF NEBRASKA
                            ONE HUNDRED EIGHTH LEGISLATURE
                                FIRST SPECIAL SESSION
                       LEGISLATIVE BILL 33
       Introduced by Brandt, 32.
       Read first time July 26, 2024
       Committee: Revenue
   A BILL FOR AN ACT relating to the Nebraska Property Tax Incentive Act; to
      amend section 77-6703, Revised Statutes Supplement, 2023; to change
      provisions related to tax credits for school district taxes paid;
      and to repeal the original section.
  Be it enacted by the people of the State of Nebraska,
                                          -1-
LB33                                                                                 LB33
                                                                               2024
       Section 1. Section 77-6703, Revised Statutes Supplement, 2023, is
   amended to read:
       77-6703 (1) For taxable years beginning or deemed to begin on or
   after January 1, 2020, under the Internal Revenue Code of 1986, as
   amended, there shall be allowed to each eligible taxpayer a refundable
   credit against the income tax imposed by the Nebraska Revenue Act of 1967
   or against the franchise tax imposed by sections 77-3801 to 77-3807. The
   credit shall be equal to the credit percentage for the taxable year, as
   set by the department under subsection (2) of this section, multiplied by
   the amount of school district taxes paid by the eligible taxpayer during
   such taxable year.
       (2)(a)   For taxable years beginning or   deemed to   begin during
  calendar year 2020, the department shall set the credit percentage so
   that the total amount of credits for such taxable years shall be one
   hundred twenty-five million dollars;
      (b) For taxable years beginning or deemed to begin during calendar
   year 2021, the department shall set the credit percentage so that the
   total amount of credits for such taxable years shall be one hundred
  twenty-five million dollars plus either (i) the amount calculated for
  such calendar year under subdivision (3)(b)(ii)(B) of section 77-4602 or
  (ii) the amount calculated for such calendar year under subdivision (3)
  (c)(ii)(B) of section 77-4602, whichever is applicable;
       (c) For taxable years beginning or deemed to begin during calendar
   year 2022, the department shall set the credit percentage so that the
   total amount of credits for such taxable years shall be five hundred
   forty-eight million dollars;
       (d) For taxable years beginning or deemed to begin during calendar
  year 2023, the department shall set the credit percentage so that the
   total amount of credits for such taxable years shall be five hundred
   sixty million seven hundred thousand dollars;
      (e) For taxable years beginning or deemed to begin during calendar
                                            -2-
LB33                                                                                          LB33
                                                                                        2024
  year 2024, the department shall set the credit percentage so that the
   total amount of credits for such taxable years shall be eight hundred
   sixty million seven hundred thousand dollars;
      (f) For taxable years beginning or deemed to begin during calendar
  year 2025, the department shall set the credit percentage so that the
   total amount of credits for such taxable years shall be one billion one
   hundred sixty million seven hundred thousand dollars;
       (g)     (e)   For taxable years beginning or   deemed to   begin during
   calendar year 2026 2024 through calendar year 2028, the department shall
   set the credit percentage so that the total amount of credits for such
   taxable years shall be the maximum amount of credits allowed in the prior
   year increased by the allowable growth percentage;
       (h)     (f)   For taxable years beginning or   deemed to   begin during
   calendar year 2029, the department shall set the credit percentage so
  that the total amount of credits for such taxable years shall be the
   maximum amount of credits allowed in the prior year increased by the
  allowable growth percentage plus an   additional seventy-five million
  dollars; and
      (i)     (g)   For taxable years beginning or   deemed to   begin during
   calendar year 2030 and each calendar year thereafter, the department
   shall set the credit percentage so that the total amount of credits for
   such taxable years shall be the maximum amount of credits allowed in the
   prior year increased by the allowable growth percentage.
       (3) If the school district taxes are paid by a corporation having an
  election in effect under subchapter S of the Internal Revenue Code, a
   partnership, a limited liability company, a trust, or an estate, the
   amount of school district taxes paid during the taxable year may be
   allocated to the shareholders, partners, members, or beneficiaries in the
   same proportion that income is distributed for taxable years beginning or
   deemed to begin before January 1, 2021, under the Internal Revenue Code
  of 1986, as amended. The department shall provide forms and schedules
                                                 -3-
LB33                                                                                                LB33
                                                                                              2024
   necessary for verifying eligibility for the credit provided in   this
  section and for allocating the school district taxes paid. For taxable
   years beginning or deemed to begin on or after January 1, 2021, under the
  Internal Revenue Code of 1986, as amended, the refundable credit shall be
  claimed by the corporation having an election in effect under subchapter
   S of the Internal Revenue Code, the partnership, the limited liability
   company, the trust, or the estate that paid the school district taxes.
      (4) For any fiscal year or short year taxpayer, the credit may be
  claimed in the first taxable year that begins following the calendar year
  for which the credit percentage was determined. The credit shall be taken
  for the school district taxes paid by the taxpayer during the immediately
  preceding calendar year.
       (5) For the first taxable year beginning or deemed to begin on or
  after January 1, 2021, and before January 1, 2022, under the Internal
  Revenue Code of 1986, as amended, for a corporation having an election in
   effect under subchapter S of the Internal Revenue Code, a partnership, a
  limited liability company,   a trust,    or an    estate that paid school
  district taxes in   calendar year   2020    but did not claim the credit
  directly or allocate such school district taxes to the shareholders,
  partners, members, or beneficiaries as permitted under subsection (3) of
   this section, there shall be allowed an additional refundable credit.
  This credit shall be equal to six percent, multiplied by the amount of
  school district taxes paid during 2020 by the eligible taxpayer.
      Sec.    2.      Original section     77-6703,      Revised Statutes Cumulative
  Supplement, 2024, is repealed.
                                                 -4-
Statutes affected: 
Introduced: 77-6703