LB 748 — Change provisions relating to the Nebraska educational savings plan trust and allow for the use of trust funds for recognized postsecondary credential programs

LB748 LB748 2026 LEGISLATURELEGISLATIVE OFBILL NEBRASKA748 ONEApproved HUNDREDby NINTHthe LEGISLATUREGovernor SECONDApril SESSION14, LEGISLATIVE2026 BILL 748 FINAL READING   Introduced by Sorrentino, 39.

Read  firstA timeBILL JanuaryFOR 07,AN 2026ACT Committee:relating to revenue and taxation;

Education A BILL FOR AN ACT relating to revenue and taxation;

Be it enacted by the people of the State of Nebraska, -1- LB748 LB748 2026 Section 1.

-2- LB748 LB748 2026 (8) Participant or account owner means an individual, an individual's legal representative, or any other legal entity authorized to establish a savings account under section 529 of the Internal Revenue Code who has entered into a participation agreement for the advance payment of qualified education expenses on behalf of a beneficiary.

-3- LB748 LB748 2026 (i) The certified costs of tuition, fees, books, supplies, and equipment required (A) for enrollment or attendance at an eligible postsecondary educational institution or (B) for costs incurred on or after January 1, 2021, for participation in an apprenticeship program registered and certified with the United States Secretary of Labor under 29 U.S.C.

-1- LB748 LB748 2026 (ii) Reasonable room and board expenses, based on the minimum amount applicable for the eligible postsecondary educational institution during the period of enrollment for those students enrolled on at least a half-half-time time basis;

(14) (13) Section 529 of the Internal Revenue Code means such -4- LB748 LB748 2026 section of the code and the regulations interpreting such section;

-5- LB748 LB748 2026 (1) Enter into agreements with any eligible postsecondary educational institution, the state, any federal or other state agency, or any other entity to implement sections 77-1415 to 77-1430, except agreements which pertain to the investment of money in the administrative fund, expense fund, or program fund;

(10) (9) Make distributions to participants upon the termination of -2- LB748 LB748 2026 participation agreements pursuant to the provisions, limitations, and -6- LB748 LB748 2026 restrictions set forth in sections 77-1415 to 77-1430;

The maximum contribution -7- LB748 LB748 2026 shall not exceed the amount allowed under section 529 of the Internal Revenue Code.

(5) Beginning January 1, 2029, the execution of a participation agreement by the trust shall not guarantee in any way that qualified education expenses will be equal to projections and estimates provided by the trust or that the beneficiary named in any participation agreement will (a) be admitted to an elementary or secondary school, (b) if -8- LB748 LB748 2026 admitted, be determined a resident for tuition purposes by the elementary or secondary school, (c) be allowed to continue attendance at the elementary or secondary school following admission, or (d) graduate from the elementary or secondary school;

The State Treasurer and Accounting Administrator of the Department of Administrative Services shall determine the state fund types necessary to comply with section 529 of the -3- LB748 LB748 2026 Internal Revenue Code and state policy.

The Nebraska educational savings plan trust -9- LB748 LB748 2026 shall be operated with no General Fund appropriations.

Any money in the administrative fund available for investment shall be invested by the -10- LB748 LB748 2026 state investment officer pursuant to the Nebraska Capital Expansion Act and the Nebraska State Funds Investment Act.

Notwithstanding any other provision of law, any amount credited to any account is not susceptible to any levy, execution, judgment, or other operation of law, garnishment, or other judicial enforcement, and the amount is not an asset or property of -11- LB748 LB748 2026 either the participant or the beneficiary for the purposes of any state insolvency or inheritance tax laws.

-4- LB748 LB748 2026 (5) Any amounts which may be paid to any person or persons pursuant to the Nebraska educational savings plan trust but which are not listed in this section are owned by the trust.

The transfer shall be made and the property distributed in accordance with the rules and regulations or with the terms of the -12- LB748 LB748 2026 participation agreement.

77-142777-1427 Nothing Nothing in sections 77-1415 to 77-1426 shall be deemed to prohibit both resident and nonresident participants and designated beneficiaries from being eligible to participate in and benefit from the Nebraska educational savings plan trust and program.

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