This legislative bill proposes significant amendments to Nebraska's revenue and taxation laws, focusing on sales and use tax exemptions and renewable energy tax credits. It aims to eliminate specific sales and use tax exemptions, including those for mineral oil as a dust suppressant and certain nonprofit organizations. The bill also seeks to repeal sections related to renewable energy tax credits, effectively terminating tax incentives for electricity generated by new renewable electric generation facilities after July 1, 2026. Additionally, it modifies provisions regarding the Nebraska Advantage Research and Development Act and redefines terms under the ImagiNE Nebraska Act.

Furthermore, the bill mandates the preparation of a tax expenditure report to detail revenue losses from various tax exemptions and the impact of nonbusiness service purchases, promoting transparency in tax expenditures. It establishes a tiered credit system for renewable energy tax credits, with specific rates for different time periods, and clarifies eligibility criteria, including limitations on claiming credits for those who received sales tax exemptions. The bill includes several insertions and deletions to refine definitions and eligibility, and it will become operative on July 1, 2026, while taking effect immediately due to an emergency declaration.

Statutes affected:
Introduced: 77-382, 77-2704.12, 77-2704.15, 77-2704.46, 77-5804, 77-6818