This bill introduces an excise tax on individual incomes exceeding $1,000,000 for single taxpayers, married filing separately, and estates and trusts, and over $2,000,000 for married filing jointly taxpayers or heads of household, starting from taxable years beginning on or after January 1, 2027. The tax rate is set at 9.5%, with a deduction for the applicable individual income tax rate as specified in section 77-2715.03. The Department of Revenue is tasked with collecting this excise tax at least once per taxable year and remitting the collected funds to the State Treasurer for credit to a newly created Tax Equity Cash Fund.

The Tax Equity Cash Fund will be administered by the Department of Revenue and will consist of funds collected from the excise tax. The department is authorized to use the fund for costs associated with its duties under this act and for fund administration. Additionally, the Legislature may approve transfers from the Tax Equity Cash Fund to the General Fund, Education Future Fund, or Property Tax Credit Cash Fund. Any available funds in the Tax Equity Cash Fund will be invested by the state investment officer in accordance with the Nebraska Capital Expansion Act and the Nebraska State Funds Investment Act.