Gov. Dave Heineman has signed three tax break bills into law, saying they represent small steps toward tax relief for Nebraskans.
Heineman added during a news conference that he hopes for much broader tax relief next year.
Heineman signed into law LB 308, which eliminates the federal alternative minimum tax calculation for individual state income tax returns. That bill also contains a provision that allows small businesses to carry forward net operating losses for 20 years rather than the current five-year limit.
“This change is especially important to small, start-up businesses,” Heineman stated during the news conference in which he signed the bills. “These are the very businesses that we are targeting as part of our larger Nebraska economic development strategy.”
Heineman also signed into law LB 573 and LB 296.
LB 573 gives a tax break to employee-owned businesses, allowing the employee owners to exclude dividends and capital gains from their taxable incomes.
LB 296 increases the tax deduction for those contributing to a Nebraska College Savings Program account. State law limits the tax-exempt contribution to $2,500 for a married person filing separately and $5,000 for a married couple filing jointly. The bill doubles those amounts.
“These important tax bills represent small steps forward regarding tax relief and tax competitiveness, but they are important steps forward. They are important to individual and small business taxpayers,” Heineman stated.
Heineman added he had hoped for more this legislative session and will look for more next session.
“Next year, our state will have the opportunity to take a giant step forward regarding tax relief and tax reform and I’m looking forward to that discussion,” said Heineman.
The legislature has approved a special commission to study the state tax system. It will offer recommendations to consider next session.
AUDIO: Gov. Dave Heineman signs three tax break bills into law. [5:15]