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Nebraska Gov. Ricketts signs $900 million tax cut measure

April 13, 2022 GMT

LINCOLN, Neb. (AP) — Nebraska Gov. Pete Ricketts signed off on a $900 million property and income tax cut package Wednesday.

Ricketts said the bill will provide nearly $1 billion in annual tax relief once it is fully implemented.

The measure will reduce the top individual and corporate income tax rates to 5.84% by 2027. Currently, the highest individual rate is 6.84% and the top corporate rate is 7.5%.

Nebraskans property owners will also receive a refundable tax credit to reimburse them for some of the taxes they pay to community colleges, and the law will speed up the state’s plan to phase out taxes on Social Security income. That tax will now by eliminated by 2025.

Some senators raised concerns how the tax cute will affect the state budget in future years, but lawmakers ultimately passed the package.