2026 Nebraska Legislative Changes

Educational Savings Plan (LB 748 – Operative July 18, 2026)

LB 748 updates education savings plans trust in Nebraska to include qualified postsecondary credentialing expenses as defined by section 529(f) of the Internal Revenue Code (IRC).

Beginning January 1, 2029, qualified education expenses will include expenses as defined by IRC section 529(c)(7) in connection with elementary or secondary school and will be increased to include amounts in excess of $10,000.

The State Treasurer is granted the power to enter into agreements with any recognized postsecondary credentialing program, except agreements which pertain to the investment of money in the administrative fund, expense fund, or program fund.

First-Time Home Buyer Savings Account Act (LB 803 – Sections 1 through 8, Operative January 1, 2027)

LB 803 created the First-Time Home Buyer Savings Account Act (Act). Beginning January 1, 2027, the Act allows for an individual to create a first-time home buyer savings account with a bank, savings bank, building and loan association, savings and loan association, or credit union. An individual may be the account holder of multiple accounts and may jointly own an account with another person if they file a married, filing jointly income tax return. The account holder, no later than April 15 of the year following the tax year in which the account is established, must designate a qualified beneficiary of the account.

A first-time home buyer is someone who has never owned or purchased a single-family, owner- occupied primary residence, which includes condominium units, and manufactured or mobile homes. An individual who has had a dissolution of marriage and has not been listed on a property title for at least three consecutive years meets the definition.

The account may be used for eligible expenses related to the qualified beneficiary’s purchase or construction of their primary residence in Nebraska. These include downpayments, closing costs, appraisal fees, mortgage origination fees, inspection fees, as well as any other downpayment costs or fees associated with financing the construction of a primary residence.

The maximum yearly contribution limit to an account is $5,000 for an individual and $10,000 for account holders who file a joint income tax return.

The maximum total contribution limit to an account is $25,000 for an individual and $50,000 for account holders who file a joint income tax return.

Federal adjusted gross income may be reduced by the amount of the contributions to the first- time home buyer savings account provided all other requirements are met under the Act. The reduced amounts may be subject to recapture as an increase to federal AGI in the taxable year of the recapture event as provided under the Act.

Domestic Violence and Human Trafficking Service Providers Tax Credit Act (LB 901 – Sections 1 through 4, Operative January 1, 2027)

LB 901 creates the Domestic Violence and Human Trafficking Service Providers Tax Credit Act (Act).

The Act creates specific refundable credits and directs the Nebraska Department of Revenue (DOR) to distribute as follows:

  • $240,000 equally distributed to qualifying domestic violence and sexual assault programs run by tribal governments;
  • $150,000 distributed to a statewide coalition representing nonprofit organizations that have an affiliation agreement with the Department of Health and Human Services (DHHS) to provide services to victims of domestic abuse under the Protection from Domestic Abuse Act;

The following credits will be distributed to the above entities and any other nonprofit organizations that operate shelters for victims of domestic violence or human trafficking as follows:

  • $1,044,000 equally distributed to the entities;
  • $1,252,800 distributed based on the population of the program or service area as shown by the latest federal decennial census or as determined by the DOR if the census data is unavailable; and
  • $313,200 distributed based on the square miles of the program or service area.

The DOR is required to distribute all credits each year. A credit recipient may sell all or a portion of the credit received.

Nebraska National Guard State Income Tax Deduction (LB 998 – Operative January 1, 2027)

For taxable years beginning on or after January 1, 2027, the Nebraska deduction allowed to Nebraska National Guard members is expanded to include 100% of the income received as a member while serving in a 10 U.S.C. military duty status to the extent included in federal adjusted gross income (AGI). The deduction continues to exclude from the Nebraska National Guard member’s income, to the extent included in federal AGI, 100% of the income received while serving in the 32 U.S.C. military duty status, employment as a 32 U.S.C. federal dual status technician with the Nebraska National Guard, or serving in a state activity duty status.

Better Life Experience Program (LB 1240 – Operative July 18, 2026)

LB 1240 updates the better life experience program to ensure that the state will not attempt to recover funds that were distributed from the account of a designated beneficiary upon the designated beneficiary’s death.

Repeal of Sales and Use Tax Exemptions (LB 901 – Sections 21, 22, and 43, Operative July 1, 2026)

As of July 1, 2026, the following sales and use tax exemptions are repealed:

  • Purchases of materials for the manufacture, installation, construction, repair, replacement of a community-based energy development (C-BED) project;
  • Mineral oil to be applied to grain as a dust suppressant;
  • Sales of biochips used for purposes of conducting genotyping or the analysis of gene expression, protein expression, genomic sequencing, or protein profiling of plants, animals, or nonhuman laboratory research model organisms;
  • Purchases of property made by a nonprofit organization that will be transferred to organizations listed in Neb. Rev. Stat. § 77-2704.12(a) to (i) until the property is transferred or the contract is completed;
  • Sales of game birds subject to permit and regulation by the Game and Parks Commission; and
  • Any tangible personal property acquired by a person operating a data center, which is an organized assembly of hardware and software and related infrastructure (including environmental control) for the purpose of storing, managing, or disseminating data which is subsequently used outside the state.

Sports Arena Facility Financing Assistance Act (LB 803 – Sections 9 through 12, Operative April 16, 2026)

LB 803 makes several changes to the Sports Arena Facility Financing Assistance Act.

It requires the board to hold a public hearing on an application within 60 days after the board completes its review of the application. The board then has 60 days after the public hearing to make a determination whether or not to approve the application. Unless the board determines that the project is ineligible or that state assistance for the project is not in the best interest of the state, the application is considered approved.

For approved projects in a city of the second class, the maximum turnback period is increased from 5 years to 10 years.

LB 803 changes approval of any board actions requires a majority vote of the board members present at the meeting.

Convention Center Facility Financing Assistance Act (LB 852 – Operative January 1, 2027 and LB 1165 – Section 13, Operative July 18, 2026)

LB 852 provides for the recapture of certain funds provided under the Convention Center Support Fund.

An entity receiving funds under the high concentration of poverty provision of this statute, shall maintain its primary place of business or primary operations in the high concentration of poverty area for the three-year period required under (3)(g) (i). If the entity fails to comply, the county may recapture the funds provided to the recipient.

LB 1165 also amends the Convention Center Facility Financing Assistance Act (Act) to make a facility with greater than 16,000 seats that resides in a city of the primary class eligible for the Act.

ImagiNE Nebraska Act Change in Definition of Qualified Location (LB 901 – Section 38, Operative July 1, 2026)

Neb. Rev. Stat. § 77-6818 is amended to eliminate Waste Treatment and Disposal – 5622 as a business activity at a qualified location for the ImagiNE Nebraska Act for applications on or after July 1, 2026.

Recalculation of Base Year for Certain Nebraska Advantage Act Projects (LB 954 – Operative July 18, 2026)

LB 954 makes changes to the Nebraska Advantage Act base-year employee for a taxpayer who has a signed agreement after December 31, 2016, and has met the required levels of employment and investment for a Tier 6 project.

If the qualifying taxpayer sells or transfers a portion of the business operations and the business continues to operate under an entity that is not part of the same unitary group as a taxpayer, the base-year employees who are part of the sale or transfer are removed from the base-year calculation on the last Form 312N prior to the sale or transfer date.

This section does not apply if the business operations terminate within 24 months or if the primary purpose of the sale was to close a location.

Foreign Adversarial Company (LB 1096 – Sections 8 through 11, Operative July 18, 2026)

LB 1096 amends Neb. Rev. Stat. §77-3,114 pertaining to benefits under an incentive program for foreign adversarial companies. The amendment removes a parent company from the designation of a foreign adversarial company.

The amendments provide that a parent company is no longer disqualified from participating in an incentive program based on a subsidiary’s designation as a foreign adversarial company. However, any non-foreign adversarial company, including a parent company as previously described, must apportion any incentive benefits to ensure they are not used as income tax benefits by the foreign adversarial company members of the group of corporations. In addition, an apportionment formula must be used to determine the amount of tax due on the liability attributable to the members of the group that are foreign adversarial companies.

Grow the Good Life Act (LB 1165 – Sections 1 through 12, April 17, 2026)

LB 1165 creates the Grow the Good Life Act to provide incentives for large in-state employers to retain, attract, and relocate workforce to Nebraska and retain headquarters in the state when there is a material change of leadership and control due to a merger or business combination with a company located outside of Nebraska. Applications may be filed with the Department of Economic Development beginning January 1, 2027, through May 31, 2029. The total amount of credits allowed under the Act is $50 million. If two or more employers qualify, the earliest application will be fully funded first. The benefits are in addition to any benefits received under the ImagiNE Nebraska Act, the Nebraska Advantage Act, or the Employment and Investment Growth Act.

An employer that has an agreement with the State will receive the wage retention credit each year of the earning period. The credit equals 5% of the total compensation paid in the year to all retained employees. The credit earned for all employers cannot exceed $5 million in any year. If two or more employers qualify, the employer with the largest average number of employees in Nebraska during the 10 years prior to the change in ownership or control must be fully funded first.

The credit may be claimed by filing the forms required by the Tax Commissioner with the employer's income tax return. The credit may be used after any other nonrefundable credits against the employer's income tax liability. In addition, the credit may be used to reduce the employer's income tax withholding employer or payor tax liability.

Change of leadership and control is defined as a change in equity ownership of a Nebraska employer due to merger or combination where:

  1. The employer maintained its corporate headquarters in Nebraska for a least 10 years prior to the merger or combination;
  2. Before the merger or combination, the employer employed more than 3,000 full-time employees in Nebraska;
  3. Before the merger or combination, the out-of-state company was valued at over $50 billion, and its shareholders receive 20% or more ownership share value or voting equity of the new merged or combined entity as part of the transaction; and
  4. The merger or combination occurs between January 1, 2026, and December 31, 2028.

Employer is defined to mean a taxpayer who:

  1. Employs at least 3,000 employees in Nebraska during the base year;
  2. Offers all full-time employees the opportunity to enroll in minimum essential coverage under an eligible employer-sponsored plan;
  3. Offers all full-time employees a sufficient package of benefits as specified in the ImagiNE Nebraska Act;
  4. Enforces a company policy against any discrimination that is prohibited by federal or state law;
  5. Electronically verifies the work eligibility status of all new employees employed in Nebraska within 90 days after the date of hire during the earning period and the usage period;
  6. Has gone through a change in ownership and control prior to the application;
  7. Is a company within Nebraska seeking to potentially retain, attract, or relocate employees to the state following a merger or combination;
  8. Retains at least 90% of its base-year employment; and
  9. Is a qualified business.

Amendments to ImagiNE Nebraska Act (LB 1165 – Section 18 through 21, Operative January 1, 2027)

LB 1165 makes several changes to the ImagiNE Nebraska Act for applications filed on or after April 17, 2026.

For applications that meet the Manufacturing Growth and Expansion - Rural level, the wage credit is increased from 6% to 7%. The investment credit is increased from 4% to 5% for investments under $10 million and once qualified investment reaches over $10 million, the credit increases from 7% to 8%.

For applications that meet the Manufacturing Growth and Expansion - Urban level, the investment credit for applicants of $10 million and 10 full-time employees is increased to 5%. Once qualified investment reaches over $10 million, the credit is 8%.

For applications that meet the Quality Jobs level, the wage credit is increased to 6% if the average wage is at least 100% of the Nebraska average wage, 8% if the average wage is at least 150%, and 10% if the average wage is at least 200%.

There is a 1% additional wage credit and a 1% additional investment credit to any applicant who is within seven years of a merger or combination has a change of ownership and control, as defined in the Grow the Good Life Act. The applicant must also add 500 full-time employees with an average annual wage of at least $100,000 and who are either newly employed by the taxpayer in Nebraska or who transfer to Nebraska from a non-Nebraska location.

The 1% investment credit is no longer available to benefit corporations.

LB 1165 also made a change to the ImagiNE Act to allow participating employers to use their credits for reimbursement of up to 50% of their employees’ dependent childcare expenses. This benefit is available to all ImagiNE Nebraska applicants with an agreement, regardless of application date and is effective immediately.

Amendments to Nebraska Advantage Act (LB 1165 – Section 16, Operative July 18, 2026)

Nebraska Advantage Act Tier 6 agreement holders who applied on or after December 1, 2020, may make a one-time election to extend the attainment period from seven years to 10 years, for a $90,000 fee.

Remote Sale of Tobacco Products (LB 212 – Operative January 1, 2027)

LB 212 requires a person to be licensed if they are outside of Nebraska and make remote retail sales of covered tobacco products to a person in Nebraska.

This person is subject to the Tobacco Products Tax Act if they make $100,000 in sales or 200 separate sales transactions of covered tobacco products in the current year or prior calendar year into Nebraska.

Covered tobacco products include cigars, pipe tobacco, or any other tobacco products as defined in Neb. Rev. Stat. §77-4007. It does not apply to snuff, snuff flour, fine cut and other chewing tobacco, or electronic nicotine delivery systems.

On or before the tenth day of each month, the licensee shall file a return which shows the different kinds of products, quantity, and purchase price paid.

Tax on Dyed Diesel Fuels (LB 815 – Operative October 1, 2026)

Under LB 815, dyed diesel will be subject to a motor fuel tax of one quarter of one cent per gallon.

This tax will apply to diesel fuel that is considered dyed diesel in two possible ways: (1) has been indelibly dyed and chemically marked in accordance with regulations issued by the U.S. Secretary of the Treasury; or (2) contains a concentration of Sulphur more than five-hundredths percent by weight or fails to meet a cetane index minimum of 40 and has been indelibly dyed in accordance with regulations of the U.S. Environmental Protection Agency. These funds will be sent to the Agricultural Alcohol Fuel Tax Fund, except the first $140,000 will be credited to the Motor Fuel Tax Enforcement and Collection Cash Fund.

Petroleum Release Remedial Action Fee (LB 815 – Operative October 1, 2026)

The petroleum release remedial action fee on undyed diesel and jet fuel will increase to 0.006 cents per gallon.

Dyed diesel is no longer subject to the petroleum release remedial action fee.

Penny Rounding (LB 838 – Section 39, Operative April 14, 2026)

LB 838 adds language addressing the total cash transaction amount and rounding to the nearest penny. This section does not apply to any transaction where the method of payment is a demand or negotiable instrument, electronic fund transfer, check, gift card, money order, credit card, or other similar instrument.

On any cash transaction where the number ends with a 1, 2, 6, or 7 as the final digit, the number may be rounded down to the nearest number divisible by 5.

On any cash transaction where the final number ends in 3, 4, 8, or 9 as the final digit, the number may be rounded up to the nearest number divisible by 5.

Any person rounding must use either (a) the method of rounding that uses the total cash transaction amount, including any taxes, fees, surcharges, assessments, and other governmental charges, or (b) the method of rounding that uses the final cash amount paid out or returned to a customer or employee for all transactions at any single premise and may not use both methods.

On any cash transaction that deals with a total cash payout or return to an employee or employee where the final number totals one or two cents, the number shall be rounded up to five cents.

Rounding only applies to the final settled cash amount. Rounding shall not alter the sales price, the amount of any tax calculated, any regulatory fee, government-imposed fee, surcharge, assessment or other charges required by law, which will continue to be calculated prior to rounding.

Money Transmitter Excise Tax (LB 838 – Sections 9 and 10, Operative July 1, 2026)

LB 838 applies an excise tax of 25% on any remittance transfer by any remittance transfer provider who is a licensee under the Nebraska Money Transmitters Act a resident of a foreign adversary country. Returns are filed quarterly and must be filed electronically.

Foreign adversary country is defined as any country that appears in 15 C.F.R. 791.4 as of January 1, 2026. This does not apply to Cuba or Venezuela.

New Fees (LB 901 – Sections 6 and 17, Operative July 1, 2026)

The Department of Revenue (DOR) will start collecting the following fees starting July 1, 2026:

  1. A collection fee of delinquent taxes of $25 or 10% of tax liability, whichever is greater, for all delinquent tax claims. The DOR will add the actual costs incurred by the DOR to collect delinquent taxes prior to referring the debt to a collection agency. The maximum amount that can be added to the liability for the collection of delinquent taxes fee and actual costs prior to the account moving to a collection agency is 50% of the balance of the claim under Neb. Rev. Stat §77-377.02.
  2. An assessment fee of $25 or 10% of tax liability, whichever is greater, for all assessments and notices of deficiency when issued. If an assessment or notice of deficiency becomes due and owing, the assessment fee must be recalculated on the tax liability as of the date when the assessment or notice of deficiency becomes due and owing.
  3. The Tax Commissioner may require a filing fee of $40 for filing a petition of redetermination or notice and demand for payment and a notice of deficiency determination. A person may file an application with the DOR claiming they are indigent to have the fee waived.
  4. A $25 fee for an application for waiver of interest or penalty.
  5. A $25 fee for all written requests for a tax clearance certificate under Neb. Rev. Stat. § 77-2707.

Beginning January 1, 2027 and each January of successive years, all of the flat fee amounts listed above will be increased by the percentage change, if any, as of August of the previous year over the level as of August for the year preceding that year in the Consumer Price Index for All Urban Consumers, Midwest Region.

Delinquent Tax Claims (LB 901 – Section 17, Operative July 1, 2026; and Section 27, Operative January 1, 2027)

When a delinquent tax claim is assigned to a collection agency and collection of delinquent taxes, fee, or costs were added to the tax liability under LB 901 § 6(1) or 6(2), then a portion of the fees or costs, up to 50% of the balance of the delinquent tax claim, must be added to the amount owed and collected from the taxpayer who owes the taxes along with the fee for the collections agency’s services as provided in the contract.

The Tax Commissioner may register a claim for delinquent taxes due and owing as a judgment in the office of the Clerk of the District Court of Lancaster County in the same manner as a foreign judgment is filed under the Nebraska Uniform Enforcement of Foreign Judgments Act.

Data Sharing Agreement (LB 901 – Section 5, Operative July 1, 2026)

Beginning no later than October 31, 2026, for the purpose of the proper administration of the laws administered by each agency, the DOR and the Department of Health and Human Services shall, upon request, disclose confidential information about persons, businesses, and state and local subdivisions with the other agency. The receiving agency must not use any confidential information obtained from the transmitting agency except for purposes directly connected with the proper administration of the laws administered by each agency.

Kratom Excise Tax (LB 901 – Section 10, Operative January 1, 2027)

LB 901 implements a 10% excise tax on kratom products. The 10% tax shall be applied on the retail purchase price.

Reports are due to the DOR monthly.

The DOR may require the returns to be filed and paid electronically.

Kratom Updates (LB 901 – Sections 11, 12 and 13, Operative July 18, 2026)

LB 901 makes changes to the enforcement of the kratom registry.

First, it changes the standard when the DOR may require third party testing. The new standard is when the DOR has a reasonable belief that a kratom product may be adulterated. It also clarifies that a product under review cannot be sold, provided, or distributed until testing is completed and verified that the product is not adulterated.

Second, the DOR is allowed to remove kratom products from the Kratom Products Directory if a consumer is selling, offering for sale, providing, or distributing an adulterated kratom product.

If a product is found to be adulterated and the ingredients are not reflected properly on the product's label, this is a violation of the Kratom Consumer Protection Act and prima facie evidence of a Consumer Protection Act violation.

Department of Revenue Enforcement Fund Changes (LB 901 – Sections 6, 15, 19, 20, 21, and 36, Operative July 1, 2026; and LB 1072 – Sections 170, 171, and 174, Operative April 7, 2026)

The use of the DOR Enforcement Fund is expanded to provide DOR with the ability to use the DOR Enforcement Fund for the administration and enforcement of any activity or function administered by the Tax Commissioner. In addition, certain requirements and restrictions on the DOR Enforcement Fund are changed, including removing the requirement that 10% of proceeds to the Fund had to be used for the purposes of identifying nonfilers, underreporters, nonpayers, and improper or fraudulent payments.

Sources credited to the DOR Enforcement Fund are as follows:

  • As of April 7, 2026, 1.95% of the fee for the DOR to assist in the collection of local option sales taxes will be transferred to the DOR Enforcement Fund. The other 1.05% will be transferred to the Municipal Equalization Fund.
  • As of July 1, 2026, the fees collected under LB 901, § 6 will be credited to the DOR Enforcement Fund. For more information about the new fees, see Revenue Ruling 99-26- 1, Section 77-371 Fee Amounts.
  • Funds in the Tobacco Products Administration Cash Fund will be transferred to the DOR Enforcement Fund as follows:
    • $11.5 million on or after July 1, 2025, but on or before June 30, 2026;
    • $12.5 million on or after July 1, 2026, but on or before June 30, 2027;
    • $12.5 million on or after July 1, 2027, but on or before June 30, 2028; and
    • $9.5 million on or after July 1, 2028, but on or before June 30, 2029.
  • As of July 1, 2026, funds received from charges for the publication of the DOR Annual Report, Package XN, Tax Expenditure Report, State Funds Booklet and for any listing of information that is not confidential are sent to the DOR Enforcement Fund.
  • The Revenue Miscellaneous Receipts Fund is terminated as of July 1, 2026, and any money remaining on such date will be transferred to the DOR Enforcement Fund.

Determination Resident Owner Avoiding Motor Vehicles Taxes, Fees, or Registration (LB 972 – Section 40, Operative July 18, 2026)

LB 972 allows the DOR and the Department of Motor Vehicles (DMV) to make a determination that a resident owner of a motor vehicle or trailer is avoiding motor vehicle taxes, motor vehicle fees, registration fees, or sales and use taxes when the resident owner:

(a) does not own property in the state where the motor vehicle or trailer has been registered;

(b) does not maintain a physical location in another state where the motor vehicle or trailer has been registered; or

(c) has not filed a state income tax return in the state where the motor vehicle or trailer has been registered.

The DOR and the DMV may also make a determination that a motor vehicle or trailer has been kept in the state for more than 30 days and has situs in Nebraska based on any of the following factors: (a) a resident was the initial purchaser of the motor vehicle or trailer; (b) a resident operated or stored the motor vehicle or trailer in this state for any period of time; (c) a resident is a member, partner, or shareholder of or is otherwise affiliated with a limited liability company, partnership, corporation, or other business entity that is purported to own the motor vehicle or trailer; (d) a resident is covered under an insurance policy for the motor vehicle or trailer; or (e) any evidence that the motor vehicle or trailer has been kept for more than thirty days in this state and has situs in this state.

If the determinations are made, a rebuttable presumption arises that (a) the resident is the actual owner; and (b) the resident is required to register the motor vehicle or trailer in Nebraska and is liable for all the all motor vehicle taxes, motor vehicle fees, and registration fees that are required under the Motor Vehicle Registration Act and the purchase of the motor vehicle is subject to sales or use taxes. The owner must be notified by the DMV or the DOR of the requirement to register the motor vehicle or trailer in Nebraska, and pay all the applicable taxes and fees no later than 30 days after the notice is delivered to the resident.

If the DMV makes the determinations, the resident may either accept the determinations and pay the taxes or fees or may dispute the determinations and appeal the matter with the Director of Motor Vehicles within 30 days after the notice is delivered or the determinations will be final. If the DOR makes the determinations, the resident may appeal the determination made by the DOR and such appeal will be in accordance with Neb. Rev. Stat. § 77-2709.

Cash Device (LB 901 – Section 29 through 32, Operative July 18, 2026)

LB 901 makes several changes to Cash Devices.

First, the tax on cash devices is increased from 5% to 10%.

The distribution of this tax is also changed.

The Tax Commissioner will remit the net operating revenue taxes collected to the State Treasurer for credit as follows:

  • 9.75 % to the Department of Revenue Enforcement Fund;
  • 2.25% to the Compulsive Gamblers Assistance Fund;
  • 46.75% to the General Fund;
  • 5% to the Nebraska Tourism Commission Promotional Cash Fund;
  • 20% to the Property Tax Credit Cash Fund; and
  • 12.5% to the county treasurer of the county in which the cash device is located to be distributed as follows:
    • If the cash device is located completely within an unincorporated area of a county, all 12.5% is distributed to the county in which the cash device is located; or
    • If the cash device is located within the limits of a city or village in such county, half of the 12.5% is distributed to such county and half of the 12.5% is distributed to the city or village in which such cash device is located.

Second, the one-time application fee for approval of a cash device is now $650 starting January 1, 2027. The annual decal fee is now $350.

Several changes are also made to the regulations dealing with cash devices.

The number of cash devices allowable increases from four to five except that in qualified census tracks it remains at four.

Additional requirements were identified to address the appearance and advertising of cash devices. Cash devices are not allowed to utilize cartoons or fictional characters that primarily appeal to minors. They cannot imitate or mimic the trademark, trade dress, branding, or packaging of products primarily marketed to minors. Locations are limited to three exterior signs with specific size requirements. Locations cannot utilize outside banners, flags, window wraps, digital displays, vehicle wraps, or other advertisement that isn’t explicitly permitted.

Starting August 1, 2026, a location may not have a cash device unless an attendant is physically present and capable of actively supervising the play of the device. Actively supervising means being able to visually confirm the age of the player and continuously monitor the area and intervene to prevent play by underage individuals.

A cash device decal will be replaced by the DOR at no cost if certain circumstances are met if the decal is damaged at no fault of the distributor or operator or if the cabinet on the cash device is destroyed beyond repair through no fault of the distributor or operator. A new decal is not required if the internal components of the cash device require replacement due to failure or damage and the replacement of such components does not change the approved software or when the software is updated to improve security or resolve issues or defects.

Mechanical Amusement Device (LB 901 – Section 33, Operative January 1, 2027)

LB 901 makes changes to the occupation tax for Mechanical Amusement Devices that are not cash devices.

The occupation tax is now $70.

Twenty percent of the occupation tax goes to the Department of Revenue Enforcement Fund and 80% goes to the General Fund.

Problem Gaming Commission (LB 1001 – Section 10 and Section 32 through 37, July 1, 2026)

The Problem Gaming Commission is removed from the Charitable Gaming Division and transferred to the Racing and Gaming Commission.

Music Bingo (LB 1001 – Section 11 through 16, July 1, 2026)

The definition of bingo is expanded to include Music Bingo. 

The top prize for Music Bingo is set at $50.

Music Bingo cannot be conducted by a Class I or Class II license holder.

Special Event Bingo (LB 1001 – Section 17, July 1, 2026)

The number of Special Event Bingo permits nonprofit organizations may apply for is increased from two to four.

The cost per card is now $1.00.

The top prize is set at $50.

Keno (LB 1001 – July 1, 2026)

LB 1001 allows an individual 19 and older to play keno lottery at a licensed racetrack enclosure if the keno lottery is played in an area separate from the casino gaming floor.

Progressive Jackpot (LB 1001 – Sections 23 and 29, July 1, 2026)

LB 1001 allows qualifying nonprofit organizations to conduct a lottery or raffle that includes a progressive jackpot.

This includes but is not limited to the game Queen of Hearts.

Gift Enterprise (LB 1001 – Section 31, July 1, 2026)

LB 1001 allows nonprofit organizations to promote, operate, and conduct gift enterprises.

A gift enterprise is defined as a contest, game of chance, savings promotion raffle, or game promotion which is conducted within the state or throughout the state and other states in connection with the sale of consumer or trade products or services solely as business promotions and in which the element of chance and prize are present.

Lottery Vending Machines (LB 60 – July 18, 2026)

Allows lottery tickets to be sold via a vending machine.

Open Meetings Act Notice Requirements (LB 596 – Sections 6,8, and 15, Operative July 18, 2026)

This bill defines the terms "digital newspaper" and "E-edition" and states the circumstances in which those mediums may be used to publish legal and other official notices. LB 596 also provides an alternative if no legal newspaper exists.

In lieu of publishing advanced meeting notices in a newspaper or on a website, LB 596 requires all public bodies, as defined by Neb. Rev. Stat. § 84-1409, to give notice at least four times each year of the public body's regular meeting schedule, its meeting location, and the method chosen by the public body to give reasonable advance notice of its meetings. This notice must be published in a legal newspaper of general circulation within the public body's jurisdiction and does not apply to specifically listed public bodies.

Calculation for State Aid to Municipalities (LB 749 - Operative July 18, 2026)

LB 749 requires the Department of Revenue to use the prior year’s Certificate of Taxes Levied to calculate state aid to municipalities.

Documentary Stamp Tax (LB 783 – Section 27, Operative July 18, 2026)

LB 783 adds an exemption to the documentary stamp tax for assignments transferring property from an assignor to an assignee pursuant to the Uniform Assignment for Benefit of Creditors Act.

Notice to Property Taxpayers (LB 803 – Sections 14 and 29, Operative January 1, 2027)

LB 803 makes changes to the change of value (COV) notices sent by county assessors to real property owners whose property has a different assessed value than the prior year. These changes transfer information, formerly sent by the county assessor in a separate postcard, to the COV notice.

As a result, COV notices now have specific design and information requirements that must be followed. These requirements include what total property taxes would be for each county, city, and school district using the current year parcel valuation and the prior year's tax levy. Other required information include a statement about valuation protests, political subdivision budget hearings, property taxes, and valuation certification date. A statement informing taxpayers they will receive a postcard from the state with further information must also be included.

LB 803 also changes notice provisions so owners of exempt real property are not required to receive a COV notice.

On or before June 1, LB 803 requires counties, cities, and school districts levying a property tax to inform the county assessor of each county where those political subdivisions have the authority to levy a tax of the time and place of their first budget hearings.

On or before June 1, LB 803 also requires county assessors to send the Property Tax Administrator (PTA) a new report containing: 1) The name and address of those who received a COV notice and 2) the county's website address.

Finally, on or before June 25, DOR is required to send a postcard to those who received a COV notice from a county. The postcard will have the county’s website address where the following information will be reflected: the time and place of the first budget hearing of the county and each city and school district authorized to levy a tax in the county and the time and place of the joint public hearing.

Political Subdivision Property Tax Requests (LB 803 – Section 17, Operative January 1, 2027)

As used in Neb. Rev. Stat. § 77-1632, LB 803 clarifies that a county, city, village, school district, learning community, sanitary and improvement district, natural resources district, and community college are considered political subdivisions. Additionally, political subdivisions now must have a two-thirds majority vote of its governing body to pass a resolution setting its property tax request at a level exceeding the prior year's request, except 7 member boards must have a four-sevenths majority vote.

Protest Requirements (LB 803 – Section 15, Operative January 1, 2027)

LB 803 creates a requirement for taxpayers filing a valuation protest to include "documentation sufficient for the county board of equalization to determine a different valuation."

Joint Public Hearings (LB 803 – Section 18, Operative January 1, 2027)

LB 803 creates a new statute regarding requirements for joint public hearings (JPH). These requirements include:

  1. The county and each city and school district leving a tax in that county must participate in the JPH.
  2. The county assessor and at least one voting member of a participating political subdivision must attend.
  3. The JPH must take place on or after July 1 and before July 15 and before any participating political subdivison files its adopted budget and must be held after 6 p.m.
  4. The political subdivision must give a presentation and those who attend the JPH must be allowed to speak for a reasonable time. After the JPH, the county clerk is responsible for preparing a JPH report and delivering it to the participating political subdivisions.

Homestead Exemption (LB 803 – Sections 21-23, Operative July 18, 2026; LB 826 – Operative April 14, 2026; LB 838 – Section 26, Operative July 18, 2026)

LB 803 makes changes to homestead exemptions for veterans who are considered 100% permanently disabled. These veterans will only have to apply for the homestead exemption one time unless a change of their status occurs. This change also applies to an unremarried surviving spouse or a surviving spouse of a 100% permanently disabled veteran that remarried after age 56.

LB 803 clarifies that if an unremarried surviving spouse under the age of 57 remarries on or before August 15 of the application year, the spouse will not be eligible for the exemption. The spouse is required to notify the county assessor within 30 days of being remarried.

LB 826 allows late applications for veterans applying for a homestead exemption. This extension applies if the individual’s certification of status was provided by the United States Department of Veterans Affairs after June 30th. This amends Neb. Rev. Stat. §§ 77-3512, 77- 3514.01.

LB 838 amends Neb. Rev. Stat. § 77-3503 to explicitly allow a certificate of trust as documentation to show that an applicant's trust satisfies the requirements for a trust to be considered an "owner" for purposes of the homestead exemption.

Emergency Assessor Exam (LB 834 – Section 10, Operative July 18, 2026)

LB 834 adds a county's "pressing need" for a deputy county assessor as a circumstance requiring the PTA to hold an emergency assessor examination, in addition to the county assessor office being vacant. The bill also allows the PTA to promulgate regulations defining a "pressing need".

County Population Requirements (LB 834 – Section 11 through 20, Operative July 18, 2026)

LB 834 makes several changes for requirements impacting counties. The population threshold for impacting counties is lowered from 150,000 to 100,000.

Tax Rolls Requirements (LB 834 – Section 21, Operative July 18, 2026)

LB 834 strikes the amount of property tax credits not reimbursed by the state as a requirement of maintaining the assessment rolls.

Property Tax Statement Required Information (LB 834 – Section 22, Operative July 18, 2026)

LB 834 requires a property tax statement to reflect the amount of property taxes due to fund all public safety services, for each county, city, and village.

Deputy County Assessor (LB 834 – Section 2, Operative July 18, 2026)

LB 834 clarifies the process of appointing a deputy county assessor and when this position takes the role as county assessor.

Cancellation of Property Taxes (LB 834 – Section 23, Operative July 18, 2026)

LB 834 strikes the following property taxes as those which can be cancelled after more than 10 years upon payment of the principal without interest: those taxes levied on mobile homes, cabin trailers, manufactured homes, or similar property as well as improvements on leased land.

Release of Property Taxes (LB 834 – Section 24, Operative July 18, 2026)

LB 834 strikes the following property taxes as those which can be released and extinguished upon the expiration of 15 years after the taxes became delinquent: those taxes levied on mobile homes, cabin trailers, manufactured homes, or similar property as well as improvements on leased land.

Mobile Home Reports/ Permits (LB 834 – Sections3 through 8, 26 and 27, Operative July 18, 2026)

For purposes of the Disposition of Personal Property Landlord and Tenant Act, a definition of "personal property" is added that defines personal property as "movable property not affixed to land." This definition does not apply for purposes of property assessment. The bill also clarifies the timing of mobile home reports and application for mobile home park permits.

Inheritance Tax Clarification (LB 838 – Section 25, Operative July 18, 2026)

LB 838 clarifies the definition of Class I beneficiaries for purposes of Nebraska Inheritance Tax.

Repeal of Data Center Personal Property Tax Exemption (LB 901 – Section 14, Operative January 1, 2027)

The personal property tax exemption for any tangible personal property that is acquired by a person operating a data center that is assembled, engineered, processed, fabricated, manufactured into, attached to, incorporated into other tangible personal property, both in component form or that of an assembled product for the purpose of subsequent use at a physical location outside of Nebraska is removed.

Learning Community (LB 924 – Operative July 18, 2026)

LB 924 makes several changes to learning communities.

First, it expands the use of the levy authority to apply to the purchase, leasing, or remodel of elementary learning facilities.

Second, it allows the use of the levy authority to be used for the administrative staff of the learning community if it does not exceed 10% of the levy.

Third, it allows the learning communities to partner with public and private entities to support high school graduation rates.

Documentary Stamp Tax (LB 1067 – Operative July 18, 2026)

LB 1067 increases the documentary stamp tax rate from $2.32 to $3.32 until January 1, 2032.

The increase is split evenly between the Rural Workforce Housing Investment Fund and the Middle-Income Workforce Housing Development Fund.

Tax Increment Financing (LB 1114 – Sections 76-80, Operative July 18, 2026)

LB 1114 adds several key definitions under the Community Development Act (TIF):

  • “blighted area" now includes the existence of underdeveloped parcels that have been within the extraterritorial zoning jurisdiction of the city for more than twenty-five years,
  • the criteria for "extremely blighted" are slightly lowered and an alternative definition is created, and
  • the definitions of "redevelopment plan", "redevelopment project", and "substandard area" are expanded.

TIF and Conduit Bonds (LB 1135 – Sections 10 through 13, Operative July 18, 2026)

This change allows liens resulting from the issuance of conduit revenue bonds to be enforced and collected by the same means as real property taxes.

Land Banks (LB1135 – Section 14, Operative July 18, 2026)

LB 1135 allows a single municipality to create a land bank without the requirement of being a city of the metropolitan or first class.

Tax Certificate (LB 1253 – Operative April 7, 2026)

LB 1253 requires tax sale certificates sold and issued between January 1, 2022, and May 7, 2025, to be governed by the laws and statutes as in effect on May 7, 2025.

Nameplate Capacity Tax (LB 1010 - Sections 13 through 16, Operative July 18, 2026)

LB 1010 creates a personal property tax exemption for personal property used for storage of electricity, while also making such "energy storage resources" subject to nameplate capacity tax.