The Nebraska Legislature’s Revenue Committee yesterday started shaping 2 of the 6 bills that will contain the panel’s broad tax-relief package.
The committee spent much of the morning in an executive session combining tax credits, tax deductions, and tax tweak proposals into LB 937 and LB 1023. Most proposals had broad support and were added to the committee bills unanimously.
LB 937, originally a tax break for family caregivers, now includes LB 901, which creates a sales tax exemption for improvements to real estate being transferred to a nonprofit, including a new mental health wing at Children’s Hospital in Omaha.
Also folded in was LB 606 to give income tax credits for donating to crisis pregnancy centers that counsel women against considering an abortion. It was amended to cut funding from $10-million a year to $2-million a year.
Among the credits and changes added to LB 1023, which extends a tax break for investing in business machinery and equipment, was LB 1400, a tax credit for employers who pay moving-related expenses for employees. It’s capped at $1-million.
, LB 1049, cutting local cell phone occupation taxes from 6.25% to 4%, and LB 1158, which gives income tax credits for donations to a fund that the State Treasurer’s Office would run to help discharge some medical debt, are both now part of LB 1023.
So is a revised version of LB 1184, which has a million dollars a year for one-time tax credits of up to $1,000 for installing reverse osmosis water filtration systems where water quality issues require it.
The committee discussed the potential to reduce some tax incentives for businesses in light of last year’s cuts to corporate income taxes and to boost the $1-million funding for biodiesel production tax credits by $500,000 each year, but concluded they needed more time to talk about both proposals.
They also talked about expanding educational savings plans to cover private K-12 schools, but said it might fit better as part of a separate income tax package.
. The Revenue Committee expects to discuss property tax proposals, including a plan to increase the state sales tax to offset property taxes, soon – possibly as early as today.