Gov. Pete Ricketts is putting on a full-court press to pass his tax cut proposal during the final days of this legislative session.
Ricketts is pressing legislators to pass his newly revised tax cut plan.
“LB 947, the Nebraska Property Tax Cuts and Opportunity Act, is the vehicle that we can achieve tax relief this year,” Ricketts tells reporters during a news conference in his Capitol hearing room.
The tax plan has undergone a vast change during this legislative session.
Gone is the proposal to convert the Property Tax Relief Fund into refundable income tax credits. Instead, it is being retained at $224 million. Refundable income tax credits for property taxes paid would be added incrementally. Agricultural producers would receive a 2% refundable credit, increasing by 2% a year until it reaches 20% by 2027. Residential property owners would also receive a 20% credit, eventually. It would grow a bit more slowly until being fully implemented by 2030.
LB 947 would phase in a cut in the corporate income tax to 6.84%, the same as the top individual income tax rate. Cuts to the individual income tax rate have been dropped.
The bill also contains $5 million for workforce development.
Once fully implemented by 2030, it becomes a $650 million package.
Ricketts has gathered farm and business groups to get behind the plan with representatives gathered on both sides of him during the news conference.
“We know that it’s very difficult to get anything passed in the legislature and by having a unified group around trying to get this done, we think this is our best chance to be able to get it,” Ricketts says.
The Unicameral enters the 50th day of this short, 60-day session today.
Ricketts claims his plan fits in the budget, while a proposed billion-dollar tax cut plan which could be on the November ballot would either force cuts to services or increases to other taxes.
AUDIO: Brent Martin reports [:45]