Nebraska lawmakers have given final approval to a corporate income tax cut designed to bring the top rate closer to the one paid by small business owners. Gov Pete Ricketts has said he will sign it.
The measure drops the top corporate income tax rate from 7.81% to 7.25% over 2 years with the 2023 legislature encouraged to cut it the rest of the way to the top individual income tax rate of 6.84% if the economics hold.
The vote was 42-1 despite objections from some senators that the lost revenue could be used for other purposes.
The estimated revenue loss to the state is $1.9-million the first year to $26-million in 2025 if lawmakers cut the rate again in 2023.