This bill amends Nebraska's revenue and taxation laws by introducing a refundable income tax credit for renters, effective January 1, 2025. The credit will benefit individuals renting residential units as their primary residence, calculated as the greater of four percent of total rent paid during the taxable year or two hundred dollars, with a maximum limit of one thousand dollars. This initiative aims to provide financial relief to renters in the state. Additionally, the bill modifies the Property Tax Credit Act by reducing the minimum relief amount for tax year 2025 from four hundred thirty million dollars to two hundred million dollars, reflecting a more sustainable funding strategy for property tax relief.

Furthermore, the bill establishes new provisions for the valuation of credit allocation for real property, setting the taxable value for all real property, excluding agricultural and horticultural land, at its standard taxable value. For agricultural and horticultural land, the taxable value will be determined at one hundred twenty percent of its taxable value, regardless of special valuation status. The bill also mandates the State Treasurer to transfer specific amounts from the General Fund to the Property Tax Credit Cash Fund and grants the Legislature the authority to transfer funds back to the General Fund. Additionally, it repeals original sections 77-2715.07 and 77-4212 from the Revised Statutes Cumulative Supplement, 2024.

Statutes affected:
Introduced: 77-2715.07, 77-4212