Revenue Committee
January 24, 2025
Committee Chair: Sen. Brad von Gillern | Bills Heard: 3 | Full Transcript (PDF)
LB208: Department of Revenue cleanup bill addressing sales tax administration and tax credit distribution
Introduced by: Sen. Brad von Gillern | Testimony: 1 proponents, 1 opponents, 0 neutral | Read bill text (PDF)
Sen. von Gillern's cleanup bill closes a $750,000 annual loophole in sales tax collection fees while tightening taxpayer privacy protections. LB208 makes six technical changes to Nebraska tax law, with the most significant being prevention of duplicate collection fees paid to certified service providers—saving the state roughly $750,000 yearly. The bill also expands confidentiality protections to cover any person disclosing confidential tax information, not just state employees.
Why it matters: The bill generates $1.27 million in projected savings through 2027 while modernizing tax administration. However, one provision converting biodiesel tax credit distribution from pro-rata to first-come-first-served drew opposition from smaller petroleum retailers who fear large competitors will exhaust the $1.5 million annual cap.
What they're saying: - Tax Commissioner James Kamm (proponent): The bill "harmonizes, cleans up, and closes the loophole" while improving efficiency for taxpayers and the state. - Tim Keigher, Petroleum Marketers Association (opponent): First-come-first-served distribution "puts them at a competitive disadvantage on the street" because "some large retailers...could suck up all the credits." - Sen. von Gillern (closing): Last year only $750,000 of the $1.5 million cap was used, so "everyone who applied got the credits." If usage approaches the cap, "we need to do something differently."
By the numbers: $750,000 annual savings from eliminating duplicate fees; $1.27 million total projected savings through FY 2026-27; $1.5 million annual cap on biodiesel and food pantry credits.
What's next: No vote was taken. The bill remains in committee.
Committee sentiment: Skeptical: Sen. Mike Jacobson
Sentiment estimated from questions and comments — not stated positions.
LB182: Expands Nebraska Affordable Housing Tax Credit and Child Care Tax Credit accessibility
Introduced by: Sen. Eliot Bostar | Testimony: 7 proponents, 0 opponents, 0 neutral | Read bill text (PDF)
Sen. Bostar's bill creates a secondary market for affordable housing tax credits without costing the state a dime, potentially unlocking $8-10 million in additional annual investment. LB182 allows developers to issue certificated (transferable) affordable housing tax credits alongside the current allocated structure, enabling smaller investors like community banks to participate without ownership requirements. The bill also expands the Child Care Tax Credit to insurance companies and financial institutions.
Why it matters: Certificated credits increase demand and pricing—potentially from $0.60-$0.65 to $0.80 per dollar—meaning developers get more funding for the same number of credits. This stretches limited tax credits further, enabling construction of more affordable units. The Child Care Tax Credit expansion addresses an unintended gap: insurance and financial institutions pay premium and franchise taxes, not income tax, so they couldn't previously use the credit despite wanting to support childcare.
What they're saying: - Shannon Harner, NIFA: "Certificated credits provide immediate fiscal effects with greater market flexibility...bringing more resources to cover the costs of development." - Chris Hite, Sugar Creek Capital: Certificated credits could "triple the amount of taxpayers that are interested in owning these tax credits," increasing pricing through competition. - Jacob Hoppe, developer: Estimated a "10% increase in the amount of housing that can get produced using kind of the same number of credits."
By the numbers: Current pricing: $0.60-$0.65 per dollar; potential with certificated credits: $0.80 per dollar; estimated additional annual investment: $8-10 million; 4,600+ affordable units created since program inception in 2017.
What's next: No vote was taken. No opponents testified. The bill remains in committee.
Committee sentiment: Supportive: Sen. Kathleen Kauth, Sen. Mike Jacobson, Sen. Tony Sorrentino
Sentiment estimated from questions and comments — not stated positions.
LB115: Increases volunteer emergency responder tax credit from $250 to $1,000 annually
Introduced by: Sen. Beau Ballard | Testimony: 11 proponents, 0 opponents, 1 neutral | Read bill text (PDF)
Sen. Ballard's bill quadruples the volunteer firefighter tax credit to $1,000, betting that modest state investment now beats the $174 million annual cost of replacing volunteers with paid services. LB115 increases the refundable income tax credit for volunteer firefighters and EMTs from $250 to $1,000 and makes the credit available in the year volunteers first qualify. The fiscal note projects $2 million in costs, but proponents argue this is a bargain compared to the cost of paid fire departments.
Why it matters: Rural Nebraska faces a recruitment and retention crisis. Volunteer rosters are declining, call volumes are rising, and training requirements have doubled (now 160+ hours for EMTs). Without action, rural communities may lose emergency services entirely. The current $250 credit—less than $1 per day for 24/7 on-call service—is widely viewed as insufficient to incentivize participation.
What they're saying: - Micheal Dwyer, State Volunteer Firefighters Association: "Calls are up, the number of responders is down, the trend is historic and the current system of EMS in Nebraska is not sustainable." - Tom Hamernik, Clarkson Fire: "The tax credit is a huge recruiting tool...it also keeps our older folks active and still responding to calls." - Dan Mallory, Bennington Fire: Raised fairness concern: departments with 1,500 calls require 150 calls (10%) to qualify, while small departments with 30 calls only need 3. "There should be a better system for that." - Sen. Sorrentino (closing suggestion): Proposed allowing credit to offset tax liability with 5-year carryforward to reduce fiscal impact.
By the numbers: 13,000 volunteer providers in Nebraska; 2,400 currently qualify for credit; $250 current credit = ~$600,000 annual cost; $1,000 credit = ~$2 million annual cost; replacing EMTs alone would cost $174 million annually; 59% of surveyed departments expect service quality to decrease if trends continue.
What's next: No vote was taken. Committee members indicated openness to the bill but expressed concern about the $2 million fiscal note in a tight budget year. Sen. Ballard indicated willingness to work with committee on finding an acceptable number.
Committee sentiment: Supportive: Sen. Teresa Ibach, Sen. George Dungan, Sen. Kathleen Kauth Unclear: Sen. Mike Jacobson, Sen. Tony Sorrentino
Sentiment estimated from questions and comments — not stated positions.
Session Notes
The Revenue Committee hearing was held on January 24, 2025. Committee Chair Sen. Brad von Gillern opened with procedural instructions regarding testifier sheets, time limits (5-minute green light system), and written position statement deadlines (8 a.m. day of hearing via Legislature website). Committee members present: Sen. Tony Sorrentino (LD 39), Sen. Kathleen Kauth (LD 31), Sen. Eliot Bostar (LD 29), Sen. Mike Jacobson (LD 42), Sen. Dave Murman (LD 38), Sen. George Dungan (LD 26), and Sen. Teresa Ibach (LD 44). Legal counsel Charles Hamilton and committee clerk Linda Schmidt assisted; legal counsel Sovida Tran was absent due to reserve duty. Pages: Lauren Nittler (UNL, agricultural economics) and Jessica Vihstadt (UNL, political science and criminal justice). No votes were taken on any bills. LB208 and LB182 had no written position statements submitted. LB115 generated substantial testimony with 11 proponents and 1 neutral testifier; no opponents.
Generated by NE Wire Service | Source: Nebraska Legislature Transcribers Office This is an AI-generated summary. Verify all claims against the official transcript.