LB 1114 also revises Nebraska’s Tax Increment Financing statutes by expanding several definitions under the Community Development Act, including modifications affecting blighted and extremely blighted areas and redevelopment projects. LOOKING AHEAD Although the 2026 legislative session did not fundamentally reshape Nebraska’s tax system, it produced several meaningful changes affecting taxpayers, businesses, and tax practitioners. The legislation expands certain economic development incentives, modifies property tax procedures, strengthens the Department of Revenue’s enforcement authority, creates new taxes, and continues Nebraska’s evolving approach to business incentives and foreign ownership restrictions. As state leaders continue to evaluate Nebraska’s tax structure and budget priorities, additional tax legislation is likely to emerge during the 2027 legislative session. CPAs advising Nebraska individuals and businesses should remain attentive to further developments as lawmakers continue refining the state’s tax and incentive laws. Nick Niemann and Matt Ottemann are partners with McGrath North Law Firm. As state and local tax and incentives attorneys, they collaborate with CPAs to help clients and companies evaluate, defend against, and resolve tax matters and obtain various business expansion incentives. See NebraskaStateTax.com and NebraskaIncentives.com for more information or to obtain a copy of their publications, The Anatomy of Resolving State Tax Matters and the Nebraska Business Expansion Decision Guide. You may also contact Niemann and Ottemann at (402) 341-3070 or nniemann@mcgrathnorth.com or mottemann@mcgrathnorth.com. This publication should not be considered as legal, tax, business or financial advice. Only our clients may rely on any legal advice we provide. 15 nescpa.org
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