LB 803 — Adopt the First-Time Home Buyer Savings Account Act and change provisions relating to the Sports Arena Facility Financing Assistance Act, the Property Tax Growth Limitation Act, the Domestic Violence and Human Trafficking Service Providers Tax Credit Act, property tax valuation and levy procedures, homestead exemptions, and income taxes

(4) (2) In determining whether state assistance is in the best -9- ER174 ER174 LB803 LB803 MMM - 03/31/2026 MMM - 03/31/2026 interest of the state, the board may shall consider the fiscal and economic capacity of the applicant to finance the local share of the project.

(i) For any eligible sports arena facility that is not a sports complex located in a city of the second class or village, seventy percent of the (A) state sales tax revenue collected by retailers doing business at eligible sports arena facilities on sales at such facilities, (B) state sales tax revenue collected on primary and secondary box office sales of admissions to such facilities, and (C) new state sales tax revenue collected by nearby retailers and sourced under sections -10- ER174 ER174 LB803 LB803 MMM - 03/31/2026 MMM - 03/31/2026 77-2703.01 to 77-2703.04 to the program area;

(b) The amount to be appropriated for distribution as state assistance to a political subdivision under this subsection for any one year after the tenth year shall not exceed the highest such amount appropriated under subdivision (3)(a) of this section during any one year of the first ten years of such -4- LB803 LB803 2026 appropriation.

-11- ER174 ER174 LB803 LB803 MMM - 03/31/2026 MMM - 03/31/2026 (i) The total amount of state assistance approved for such facility shall not exceed twenty-five million dollars;

-12- ER174 ER174 LB803 LB803 MMM - 03/31/2026 MMM - 03/31/2026 (8) State assistance shall not be used for an operating subsidy for any publicly owned eligible sports arena facility or nearby parking facility.

-13- ER174 ER174 LB803 LB803 MMM - 03/31/2026 MMM - 03/31/2026 13-3403 (1) Except as otherwise provided in the Property Tax Growth Limitation Act, for fiscal years beginning on or after July 1, 2025, a political subdivision's property tax request for any year shall not exceed its property tax request authority as determined under this section.

-5- LB803 LB803 2026 (a) The product of (i) the amount of property taxes levied in the prior year, less the sum of exceptions utilized in the prior year pursuant to subdivisions (1) and (2) of section 13-3404, and (ii) the political subdivision's growth percentage;

-14- ER174 ER174 LB803 LB803 MMM - 03/31/2026 MMM - 03/31/2026 (2) On or before June 1, in addition to the notice of preliminary valuation sent pursuant to section 77-1301, the county assessor shall create a notice to be delivered to notify the owner of record as of May 20 of the assessed value of every item of real property not exempt from taxation which has been assessed at a value different than in the previous year.

Such notice shall be delivered given by first-class mail addressed to such owner's last-knownlast- known address.

The notice shall state that the tax amounts do not include any homestead exemptions or property tax credits.

This notice displays the amount of tax which would be levied if the levy rate for each of the listed political subdivisions were unchanged from the prior year."year. The notice shall include the date of convening of the county board of equalization and the dates for filing a protest.

The noticevaluation -15-for ER174your ER174parcel LB803will LB803not MMMbe -certified 03/31/2026to MMMthe -listed 03/31/2026political subdivisions by the county until August 20." The notice shall alsoinclude statethe date of convening of the following:county board of equalization and the dates for filing a protest.

The notice shall also state the following:

For purposes of this subsection, political subdivision means a county, city, or school -16- ER174 ER174 LB803 LB803 MMM - 03/31/2026 MMM - 03/31/2026 district.

-6- LB803 LB803 2026 (i) The time and place of the first budget hearing for the county and each city and school district authorized to levy a tax within the county;

77-150277-1502 (1) (1) The county board of equalization shall meet for the purpose of reviewing and deciding written protests filed pursuant to this section beginning on or after June 1 and ending on or before July 25 of each year.

The resolution must be -17- ER174 ER174 LB803 LB803 MMM - 03/31/2026 MMM - 03/31/2026 adopted before July 25 and it will affect the time for hearing protests for that year only.

If the person signing the protest is not an owner of the property or a person authorized to protest on behalf of the owner, the county clerk -18- ER174 ER174 LB803 LB803 MMM - 03/31/2026 MMM - 03/31/2026 shall mail a copy of the protest to the owner of the property at the address to which the property tax statements are mailed.

The county assessor shall have no authority to make a change in the assessment rolls until there is in -19- ER174 ER174 LB803 LB803 MMM - 03/31/2026 MMM - 03/31/2026 his or her possession a report which has been completed in the manner specified in this section.

(6) On or before August 2, or on or before August 18 in a county that has adopted a resolution to extend the deadline for hearing protests, the county -7- LB803 LB803 2026 clerk shall mail to the protester written notice of the board's decision.

77-160177-1601 (1) (1) The county board of equalization shall each year, on or before October 20, levy the necessary taxes for the current year if within the limit of the law.

Notice shall be provided to the -20- ER174 ER174 LB803 LB803 MMM - 03/31/2026 MMM - 03/31/2026 governing body of each political subdivision affected by the error.

The governing body of the -21- ER174 ER174 LB803 LB803 MMM - 03/31/2026 MMM - 03/31/2026 political subdivision shall pass a resolution or ordinance to set the amount of its property tax request after holding the public hearing required in subsection (4) (3) of this section.

If the governing body of a political subdivision seeks to set its property tax request at an amount that exceeds its property tax request in the prior year, -8- LB803 LB803 2026 it may do so, subject to the limitations provided in the School -22- ER174 ER174 LB803 LB803 MMM - 03/31/2026 MMM - 03/31/2026 District Property Tax Limitation Act and the Property Tax Growth Limitation Act, after holding the public hearing required in subsection (4) (3) of this section and by passing a resolution or ordinance, by a two-thirds majority vote except for seven-member boards which shall require a four-sevenths majority vote, that complies with subsection (5) (4) of this section.

and the -23- ER174 ER174 LB803 LB803 MMM - 03/31/2026 MMM - 03/31/2026 percentage increase or decrease in the total operating budget from the prior year to the current year.

 (1)(1) Each county and each city or school district levying a tax on property within a county shall participate in a joint public hearing.

If a political subdivision includes area in more -24- ER174 ER174 LB803 LB803 MMM - 03/31/2026 MMM - 03/31/2026 than one county, the political subdivision shall be deemed to be within the county in which the political subdivision's principal headquarters are located.

(6) Any member of the public shall be allowed to speak at the joint public -9- LB803 LB803 2026 hearing and shall be given a reasonable amount of time to do so.

-25- ER174 ER174 LB803 LB803 MMM - 03/31/2026 MMM - 03/31/2026 (i) The name of each political subdivision that participated in the joint public hearing;

77-1776 Any77-1776 Any political subdivision which has received proceeds from a levy imposed on all taxable property within an entire county which is in excess of that requested by the political subdivision under section 77-1632 the Property Tax Request Act as a result of a clerical error or mistake shall, in the fiscal year following receipt, return the excess tax collections, net of the collection fee, to the county.

77-271677-2716 (1) (1) The following adjustments to federal adjusted gross income or, for corporations and fiduciaries, federal taxable income shall be made for interest or dividends received:

-26- ER174 ER174 LB803 LB803 MMM - 03/31/2026 MMM - 03/31/2026 (a)(i) There shall be subtracted interest or dividends received by the owner of obligations of the United States and its territories and possessions or of any authority, commission, or instrumentality of the United States to the extent includable in gross income for federal income tax purposes but exempt from state income taxes under the laws of the United States;

and (e)(i) Any amount subtracted under this subsection shall be reduced by any interest on indebtedness incurred to carry the obligations or securities described in this subsection or the investment in the regulated investment company and by any expenses incurred in the -27- ER174 ER174 LB803 LB803 MMM - 03/31/2026 MMM - 03/31/2026 production of interest or dividend income described in this subsection to the extent that such expenses, including amortizable bond premiums, are deductible in determining federal taxable income.

For a nonresident individual, estate, or trust or for a partial-yearpartial- year resident individual, the net operating loss computed on the federal return shall be adjusted by the modifications contained in this section and any carryovers or carrybacks shall be limited to the portion of the loss derived from or connected with Nebraska sources.

(4) Federal adjusted gross income, or, for a fiduciary, federal taxable -10- LB803 LB803 2026 income shall be modified to exclude the portion of the income or loss received from a small business corporation with an election in effect under subchapter S of the Internal Revenue Code or from a limited liability company organized pursuant to the Nebraska Uniform Limited Liability Company Act that is not derived from or connected with Nebraska sources as determined in section 77-2734.01.

-28- ER174 ER174 LB803 LB803 MMM - 03/31/2026 MMM - 03/31/2026 (5) There shall be subtracted from federal adjusted gross income or, for corporations and fiduciaries, federal taxable income dividends received or deemed to be received from corporations which are not subject to the Internal Revenue Code.

(8)(a) Federal adjusted gross income or, for corporations and fiduciaries, federal taxable income shall be reduced, to the extent included, by income from interest, earnings, and state contributions received from the Nebraska educational savings plan trust as provided in sections 77-1415 to 77-1430 and any account established under the -29- ER174 ER174 LB803 LB803 MMM - 03/31/2026 MMM - 03/31/2026 achieving a better life experience program as provided in sections 77-1401 to 77-1409.

(i) The amount resulting from the cancellation of a participation agreement refunded to the taxpayer as a participant in the Nebraska -30- ER174 ER174 LB803 LB803 MMM - 03/31/2026 MMM - 03/31/2026 educational savings plan trust to the extent previously deducted under subdivision (8)(b) of this section;

(b) For a partnership, limited liability company, cooperative, including any cooperative exempt from income taxes under section 521 of the Internal Revenue Code of 1986, as amended, limited cooperative association, subchapter S corporation, or joint venture, the increase shall be distributed to the partners, members, shareholders, patrons, or beneficiaries in the same manner -11- LB803 LB803 2026 as income is distributed for use against their income tax liabilities.

Twenty percent of the total amount of bonus depreciation added back by this -31- ER174 ER174 LB803 LB803 MMM - 03/31/2026 MMM - 03/31/2026 subsection for tax years beginning or deemed to begin before January 1, 2003, under the Internal Revenue Code of 1986, as amended, may be subtracted in the first taxable year beginning or deemed to begin on or after January 1, 2005, under the Internal Revenue Code of 1986, as amended, and twenty percent in each of the next four following taxable years.

(11)(a) For taxable years beginning or deemed to begin before January 1, 2018, under the Internal Revenue Code of 1986, as amended, federal adjusted gross income shall be reduced by contributions, up to two thousand dollars per married filing jointly return or one thousand dollars for any other return, and any investment earnings made as a participant in the Nebraska long-term care savings plan under the Long-Long-Term Term Care Savings Plan Act, to the extent not deducted for federal income -32- ER174 ER174 LB803 LB803 MMM - 03/31/2026 MMM - 03/31/2026 tax purposes.

(c) For taxable years beginning or deemed to begin on or after January 1, 2021, and before January 1, 2024, under the Internal Revenue -33- ER174 ER174 LB803 LB803 MMM - 03/31/2026 MMM - 03/31/2026 Code of 1986, as amended, a taxpayer may claim the reduction to federal adjusted gross income allowed under this subsection or the reduction to federal adjusted gross income allowed under subsection (14) of this section, whichever provides the greater reduction.

(iii) Sixty percent for taxable years beginning or deemed to begin on or -12- LB803 LB803 2026 after January 1, 2023, and before January 1, 2024, under the Internal Revenue Code of 1986, as amended;

(15)(a) For taxable years beginning or deemed to begin on or after January 1, 2015, and before January 1, 2022, under the Internal Revenue -34- ER174 ER174 LB803 LB803 MMM - 03/31/2026 MMM - 03/31/2026 Code of 1986, as amended, an individual may make a one-time election within two calendar years after the date of his or her retirement from the military to exclude income received as a military retirement benefit by the individual to the extent included in federal adjusted gross income and as provided in this subdivision.

(17) For taxable years beginning or deemed to begin on or after -35- ER174 ER174 LB803 LB803 MMM - 03/31/2026 MMM - 03/31/2026 January 1, 2022, under the Internal Revenue Code of 1986, as amended, federal adjusted gross income shall be reduced by the amount received by or on behalf of a firefighter for cancer benefits under the Firefighter Cancer Benefits Act to the extent included in federal adjusted gross income.

duty status such as members attending -36- ER174 ER174 LB803 LB803 MMM - 03/31/2026 MMM - 03/31/2026 drills, annual training, and military schools and members who are serving in a 32 U.S.C.

(b) For taxable years beginning or deemed to begin on or after January 1, -13- LB803 LB803 2026 2024, under the Internal Revenue Code of 1986, as amended, federal adjusted gross income or, for corporations and fiduciaries, federal taxable income shall be reduced by the amount of contributions made to the Medical Debt Relief Fund, to the extent not deducted for federal income tax purposes.

(25) There shall be added to federal adjusted gross income or, for corporations and fiduciaries, federal taxable income for all taxable years beginning on or after January 1, 2025, the amount of any net -37- ER174 ER174 LB803 LB803 MMM - 03/31/2026 MMM - 03/31/2026 capital loss that is derived from the sale or exchange of gold or silver bullion to the extent such loss is included in federal adjusted gross income except that such loss shall not be added if the loss is derived from the sale of bullion as a taxable distribution from any retirement plan account that holds gold or silver bullion.

-38- ER174 ER174 LB803 LB803 MMM - 03/31/2026 MMM - 03/31/2026 Sec.

(d) An unremarried surviving spouse of any veteran, including a veteran other than a veteran described in section 80-401.01, who was discharged or otherwise separated with a characterization of honorable or general (under honorable conditions) and who died because of a service-service-connected connected disability or a surviving spouse of such a veteran who -39- ER174 ER174 LB803 LB803 MMM - 03/31/2026 MMM - 03/31/2026 remarries after attaining the age of fifty-seven years;

(e) An unremarried surviving spouse of a serviceman or servicewoman, including a veteran other than a veteran described in section 80-401.01, whose death while on active duty was service-connected or a surviving spouse of such a serviceman or servicewoman who remarries after attaining the age of fifty-sevenfifty- seven years;

and (f) An unremarried surviving spouse of a serviceman or servicewoman who died while on active duty during the periods described in section 80-401.01 or a surviving spouse of such a serviceman or servicewoman who remarries after -14- LB803 LB803 2026 attaining the age of fifty-seven years.

(b) If an unremarried surviving spouse who has applied for a homestead exemption under subdivision (2)(b), (d), (e), or (f) of this section remarries on or before August 15 of the year of application and before attaining the age of fifty-seven years, such spouse shall be -40- ER174 ER174 LB803 LB803 MMM - 03/31/2026 MMM - 03/31/2026 ineligible for the homestead exemption.

The Tax Commissioner shall provide to each county assessor claim forms and address lists of applicants from the prior year in the manner -41- ER174 ER174 LB803 LB803 MMM - 03/31/2026 MMM - 03/31/2026 approved by the Tax Commissioner.

77-3512 (1)77-3512 (1) It shall be the duty of each owner who wants a homestead exemption under section 77-3506, 77-3507, or 77-3508 to file an application therefor with the county assessor of the county in which the homestead is located after February 1 and on or before June 30 of each year, except that:

and (d) A veteran or surviving spouse of a veteran, serviceman, or servicewoman qualifying for a homestead exemption under subdivision (2)(2)(a), (a), (b), (d), (e), or (f) of section 77-3506 shall not only be required to file an application in any every subsequent year.

After the expiration of the five-year exemption period, the surviving spouse -42- ER174 ER174 LB803 LB803 MMM - 03/31/2026 MMM - 03/31/2026 shall be required to file for an exemption under subdivision (2)(b) of section 77-3506 on an annual basis.

SectionsSection 14,2, 15,Legislative 16,Bill 17,901, 18,One 19,Hundred 27,Ninth andLegislature, 28Second ofSession, this2026, actis becomeamended operativeto onread: January 1, 2027.

Sections-15- 1,LB803 2,LB803 3,2026 4,Sec. 5, 6, 7, 8, 13, 20, 21, 22, 23, and 26 of this act become operative three calendar months after the adjournment of this legislative session.

The2. other sections of this act become operative on their effective date.

(1) For taxable years beginning or deemed to begin on or after January 1, 2027, under the Internal Revenue Code of 1986, as amended, there shall be allowed refundable credits against the income tax imposed by the Nebraska Revenue Act of 1967 as follows:

(a) Two hundred forty thousand dollars of tax credits to be distributed equally among qualifying domestic violence and sexual assault programs run by tribal governments;

(b) One hundred fifty thousand dollars of tax credits to be distributed to a statewide coalition representing nonprofit organizations that have an affiliation agreement with the Department of Health and Human Services to provide services to victims of domestic abuse under the Protection from Domestic Abuse Act;

(c) One million forty-four thousand dollars of tax credits to be distributed equally to the nonprofit organizations entities described in subdivision subdivisions (a) and (b) of this subsection and any other nonprofit organizations that operate a shelter for victims of domestic violence or human trafficking;

and (d) One million five hundred sixty-six thousand dollars of tax credits to be distributed to the nonprofit organizations entities described in subdivision subdivisions (a) and (b) of this subsection and any other nonprofit organizations that operate a shelter for victims of domestic violence or human trafficking as follows:

(i) One million two hundred fifty-two thousand eight hundred dollars of tax credits to be distributed based on the population of the program or service area as shown by the latest federal decennial census or as determined by the department if such census data is not available;

and (ii) Three hundred thirteen thousand two hundred dollars of tax credits to be distributed based on the square miles of the program or service area.

(2) The department shall distribute all of the credits allowed under the Domestic Violence and Human Trafficking Service Providers Tax Credit Act each calendar year.

(3) For purposes of this section:

(a) Department means the Department of Revenue;

(b) Nonprofit organization means an organization organized under section 501(c)(3) of the Internal Revenue Code of 1986, as amended;

and (c) Tribal has the same meaning as in section 71-914.02.

OriginalSections section14, 13-3105,15, Reissue16, Revised17, Statutes18, of19, Nebraska,24, section28, 13-3108, Revised Statutes Cumulative Supplement, 2024, and sections29 13-3103of andthis 13-3106,act Revisedbecome Statutesoperative Supplement,on 2025,January are1, repealed.2027.

Sections 1, 2, 3, 4, 5, 6, 7, 8, 13, 20, 21, 22, 23, and 27 of this act become operative three calendar months after the adjournment of this legislative session.

The other sections of this act become operative on their effective date.

Original section 77-3510,13-3105, Reissue Revised Statutes of Nebraska, section 77-3512,13-3108, Revised Statutes Cumulative Supplement, 2024, and sections 13-3403,13-3103 77-2716, and 77-3506,13-3106, Revised Statutes Supplement, 2025, are repealed.

Original section 77-1315,77-3510, Reissue Revised Statutes of Nebraska, sectionssection 77-1502,77-3512, 77-1601, and 77-1776, Revised Statutes Cumulative Supplement, 2024, and sectionsections 77-1632,13-3403, 77-2716, and 77-3506, Revised Statutes Supplement, 2025, are repealed.

TheOriginal followingsection 77-1315, Reissue Revised Statutes of Nebraska, sections are77-1502, outright77-1601, repealed:and 77-1776, Revised Statutes Cumulative Supplement, 2024, section 77-1632, Revised Statutes Supplement, 2025, and section 2, Legislative Bill 901, One Hundred Ninth Legislature, Second Session, 2026, are repealed.

Sections 77-1630 and 77-1634, Revised Statutes Cumulative Supplement, 2024, and sections 77-1631 and 77-1633, Revised Statutes Supplement, 2025.

The following sections are outright repealed:

Sections 77-1630 and 77-1634, Revised Statutes Cumulative Supplement, 2024, section 77-1631, Revised Statutes Supplement, 2025, and section 77-1633, Revised Statutes Supplement, 2025, as amended by section 1, Legislative Bill 384, One Hundred Ninth Legislature, Second Session, 2026.

Sec.

30.

2.-16-

On page 1, strike beginning with "section" in line 1 through line 4 and insert "sections 13-3105, 77-1315, and 77-3510, Reissue Revised Statutes of Nebraska, sections 13-3108, 77-1502, 77-1601, 77-1776, and 77-3512, Revised Statutes Cumulative Supplement, 2024, and sections -43- ER174 ER174 LB803 LB803 MMM - 03/31/2026 MMM - 03/31/2026 13-3103, 13-3106, 13-3403, 77-1632, 77-2716, and 77-3506, Revised Statutes Supplement, 2025;

to adopt the First-Time Home Buyer Savings Account Act;

to change provisions relating to the Sports Arena Facility Financing Assistance Act, the Property Tax Growth Limitation Act, property tax valuation and levy procedures, and homestead exemptions;

to require a joint public hearing regarding property tax valuation and political subdivision budgets;

to provide an adjustment to income for income tax purposes;

to harmonize provisions;

to provide operative dates;

to repeal the original sections;

to outright repeal sections 77-1630 and 77-1634, Revised Statutes Cumulative Supplement, 2024, and sections 77-1631 and 77-1633, Revised Statutes Supplement, 2025;

and to declare an emergency.".

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