Major income tax cuts signed into law

LINCOLN, Neb. — The ink is dry on major income tax cuts in Nebraska.

“This really is a historical day for Nebraska taxpayers," said Senator Tom Briese.

NEB. LAWMAKERS PASS HISTORIC TAX CUTS

Governor Jim Pillen signed two bills into law Thursday.

LB 754 reduces the state's top personal tax rate and the corporate income tax rate to 3.99% by tax year 2027.

It also adopts the Child Care Tax Credit Act and speeds up tax exemptions for social security benefits.

NE LEG: SENATORS DEBATE PROPERTY TAX CREDIT CHANGES

LB 243 raises the minimum amount of relief granted under the Property Tax Credit Act from $275 million to $560 million.

“The bottom line is they’re going to put more dollars back into the hands of everyday Nebraskans,” said Briese.

At the signing the governor said he’s not done.

"We have to change how property is valuated in the state. It's got to take place. It's going to be a lot of hard work, but the time is now," said Pillen. “Obviously 3.99 is good but we’re going to grow this economy. This is the greatest place in the world and we just need to be sure we have tax policy that competes with anybody so all things are on deck.”

Leaders of the Nebraska Chamber of Commerce and Nebraska Farm Bureau showed their support, attending the signing.

However, critics have said that the tax cuts could leave Nebraska short in the future.

“The $5 billion that the Governor and Legislature committed to tax cuts thrusts instability into the state’s fiscal outlook at a time when we are enjoying a budget surplus,” said OpenSky Policy Institute Executive Director Dr. Rebecca Firestone following the passing of the two bills. “The state is providing significant additional funding to public schools, including for special education (LB 583), but these tax cuts largely benefiting the wealthy could make it harder to maintain that commitment when economic challenges come.”