Revenue Committee
March 26, 2025
Committee Chair: Sen. Bostar | Bills Heard: 5 | Full Transcript (PDF)
LB649: Defense Efforts Workforce Act (AM632)
Introduced by: Sen. von Gillern (shell bill); Sen. Sanders (AM632 language) | Testimony: 5 proponents, 0 opponents, 0 neutral | Read bill text (PDF)
Nebraska proposes $40 million defense contractor tax credit to compete for Pentagon jobs. The Defense Efforts Workforce Act would offer companies up to $4 million annually in tax credits for hiring civilian workers supporting Offutt Air Force Base and USSTRATCOM missions, capped at $40 million over 10 years.
Why it matters: Offutt represents roughly 2% of Nebraska's economy and hosts 50+ military missions. As the Pentagon cuts federal civilian workforce and other states aggressively recruit defense contractors, Nebraska risks losing high-paying jobs and strategic military presence without competitive incentives.
What they're saying: - Proponents: "We are in competition with some other states to keep those things here," said Dana Bradford of the Strategic Command Consultation Committee. Texas, Virginia, and Colorado already offer specialized defense tax incentives. Mike Cassling of the Aksarben Foundation cited the successful Fiserv incentive program that brought 2,000+ employees, arguing this represents a "historic opportunity" for Nebraska. - Opponents: None testified.
By the numbers: Offutt employs 11,000 people (7,000 military, 4,000 civilian). The Pentagon announced 5,000 civilian job cuts at the outset, with potentially more to follow. Companies must employ at least 10 full-time workers dedicated to Offutt missions and pay wages at 150% of statewide average hourly wage to qualify.
What's next: No vote was taken. The bill is a shell vehicle for AM632 language, which will be amended in upon committee approval.
Committee sentiment: Supportive: Sen. Kauth, Sen. Bostar, Sen. Murman
Sentiment estimated from questions and comments — not stated positions.
LB643: Owner-Occupied Housing Incentive
Introduced by: Sen. Prokop | Testimony: 1 proponents, 0 opponents, 0 neutral | Read bill text (PDF)
Senator Prokop proposes restricting tax benefits for large-scale residential investors to boost owner-occupied housing. LB643 would deny state tax benefits to investors holding more than 30 single-family homes unless they sell 10% to owner-occupants or 5% to first-time homebuyers.
Why it matters: Investor-owned homes now comprise 51% of housing stock in some Nebraska communities like Papillion. Federal and state tax deductions allow investors to bid 10-15% more than owner-occupants, pricing out families trying to build wealth through homeownership.
What they're saying: - Proponents: Justin Brady of Habitat Omaha said investors gain roughly $9,000 in first-year tax advantages, allowing them to bid $30,000 more for a $150,000 home. "We just added $30,000 to the price of a home, and without ever putting someone who was ever owner occupied in it." - Opponents: Sen. Jacobson warned the bill could "disincentivize people to come in and build desperately needed housing." He cited North Platte's 850-job Sustainable Beef facility requiring 800 new housing units—many built by investors as apartments. Sen. Sorrentino called it "forced sale of private property."
By the numbers: Eight proponent letters submitted online; zero opponents; zero neutral testifiers.
What's next: No vote taken. Sen. Prokop indicated willingness to work with stakeholders during interim to address concerns about property rights and unintended consequences for affordable housing development.
Committee sentiment: Supportive: Sen. Dungan Skeptical: Sen. Sorrentino, Sen. Jacobson
Sentiment estimated from questions and comments — not stated positions.
LB558: Infrastructure Review Task Force
Introduced by: Sen. von Gillern | Testimony: 4 proponents, 0 opponents, 0 neutral | Read bill text (PDF)
Nebraska Legislature moves to study $17 billion transportation infrastructure gap with new task force. LB558 would establish an Infrastructure Review Task Force to analyze the state's 20-year transportation needs, examine funding sources, and recommend solutions to a $150 million annual shortfall.
Why it matters: Nebraska's transportation system is critical to economic development and business competitiveness, but the state hasn't held a comprehensive infrastructure conversation in over a decade. Inflation has eroded buying power of existing revenue sources, and the federal gas tax hasn't increased since 1993. Neighboring states are making multi-billion dollar investments that could lure Nebraska businesses and jobs.
What they're saying: - Proponents: Director Vicki Kramer said the 2007-2009 task force approach "built up the political support" for the Build Nebraska Act, which now generates $100 million annually. "If there needs to be a change and those projects need to move up, additional revenue sources have to come forward." Jeanne McClure of ACEC Nebraska warned the committee must reach consensus on a "bold move"—whether doubling Build Nebraska Act funding or raising gas tax—and present a united front. - Opponents: None testified.
By the numbers: $17 billion estimated infrastructure need over 20 years; $150 million annual funding gap; Build Nebraska Act generates $100 million annually but buys only 11 miles of new expressway; federal gas tax unchanged since 1993.
What's next: No vote taken. Sen. von Gillern indicated the task force's primary goal is education and understanding, not necessarily producing legislation by December 2025. Two proponent letters received; no opponent or neutral letters.
Committee sentiment: Supportive: Sen. Kauth, Sen. Sorrentino, Sen. Ibach, Sen. Dungan, Sen. Jacobson, Sen. Murman
Sentiment estimated from questions and comments — not stated positions.
LB647: Shell bill for committee priority
Introduced by: Sen. von Gillern | Testimony: 0 proponents, 0 opponents, 0 neutral | Read bill text (PDF)
Shell bill LB647 advanced with priority designation for future committee use. Sen. von Gillern presented LB647 as a placeholder vehicle for committee priority legislation to be determined in coming weeks.
Why it matters: Shell bills allow committees to reserve priority bill slots for legislation that may not be ready for introduction at session start.
What they're saying: No testimony offered. Sen. von Gillern stated he will work with committee to determine what underlying bills will be amended into LB647.
What's next: No vote taken. No proponents, opponents, or neutral testifiers. No online comments received.
LB648: Shell bill for committee use
Introduced by: Sen. von Gillern | Testimony: 0 proponents, 0 opponents, 0 neutral | Read bill text (PDF)
Shell bill LB648 held in reserve for potential committee use. Sen. von Gillern presented LB648 as a non-priority shell bill available if committee needs additional vehicle for legislation.
Why it matters: Provides flexibility for committee to address emerging legislative needs without priority designation.
What's next: No vote taken. No testimony, proponents, opponents, or online comments.
Session Notes
Committee Chair Bostar opened hearing with procedural instructions regarding testifier sheets, three-minute light system, handout requirements, and written position comment deadline (8 a.m. day before hearing via nebraskalegislature.gov). Committee members present: Sen. Sorrentino (LD 39), Sen. Kauth (LD 31), Sen. Dungan (LD 26). Legal counsel Sovida Tran and committee clerk Linda Schmidt assisted. Pages: Lauren Nittler (University of Nebraska-Lincoln, agricultural economics) and Jessica Vihstadt (University of Nebraska-Lincoln, political science and criminal justice). Vice Chair Jacobson presided over final three bills. No votes were taken on any bills during the hearing. Committee concluded with Sen. Jacobson noting 'George won the pool' regarding time predictions.
Generated by NE Wire Service | Source: Nebraska Legislature Transcribers Office This is an AI-generated summary. Verify all claims against the official transcript.