Major Legislative Changes

2025 Nebraska Legislative Changes

(LB644) Makes it so any foreign adversarial company is ineligible to receive any benefits under any incentive program of the State of Nebraska | Operative Date: 10/01/2025

LB644 was signed into law on June 4, 2025, and is effective October 1, 2025. Section 31 of LB644, codified at Neb. Rev. Stat. § 77-3,114, prohibits foreign adversarial companies from receiving any benefits under ImagiNE. Benefits include any reduction of tax, exemption from tax, or any refunds of tax allowed under the Act. The Department of Economic Development (DED) will not enter into any agreements for benefits under the Act with any foreign adversarial company. DED will request information regarding the entity ownership structure of all applicants under the Act to ensure compliance with LB644 effective immediately.

This includes but is not limited to; The Beginning Farmer Tax Credit Act, The Imagine Nebraska Act, The Nebraska Advantage Microenterprise Tax Credit Act, the Nebraska Advantage Research and Development Act, the Nebraska Advantage Rural Development Act, the Nebraska Job Creation and Mainstreet Revitalization Act, the New Markers Job Growth Investment Act, the Urban Development Act, and any other incentive programs created by the Nebraska Legislature or through an executive action for the purpose of recruitment or retention of businesses in Nebraska.

A foreign adversary is defined as any country listed as such in 15 C.F.R. 791.4 as of April 1, 2025. These countries are China including Hong Kong and Macau, Cuba, Iran, North Korea, and Russia. Venezuelan politician Nicolas Maduro is also included.

A foreign adversarial company is defined as: organized under the laws of a foreign adversary, its principal place of business is within a foreign adversary, is owned in whole or in part, operated, or controlled by the government of a foreign adversary, or is a subsidiary or parent of any company that is organized under the laws of a foreign adversary.

Government of a foreign adversary is defined as a person or group of persons exercising sovereign de factor or de jure political jurisdiction over any foreign adversary, any part of such a country including subdivisions of any such group and any group or agency to which sovereign de factor or de jure authority or functions are directly or indirectly delegated.

(LB613) Requires the Tax Commissioner to provide any information requested by municipalities that have adopted a local option sales tax regarding businesses in their jurisdiction | Operative Date: 09/03/2025

The information allows review of expenses, or operations of a particular business. A request can be made up to three times a year.

LB613 allows the designated municipality employee to disclose copies of returns and return information to another municipality employee for the purpose of verifying accuracy, analysis, forecasting, accuracy of reporting between municipalities, and ensure taxes are used for the purpose voted on by the public.

Under LB613, if tax proceeds are received for a city that imposes a local sales and use tax, but the name of the city is not identified within six months, then the amount shall be credited to the Municipal Equalization Fund.

Municipalities may request from DOR a list of qualified businesses that have filed to receive a tax incentive under the Employment and Investment Growth Act, the Nebraska Advantage Act, the ImagiNE Nebraska Act, or the Urban Redevelopment Act. This request may be made annually.