Nebraska Legislature Bill LB492

Nebraska 2023-2024 Regular Session

• Introduced: 1/17/23
• Refer: 1/19/23
• Failed: 4/18/24

Caption

Allow income tax deductions for the cost of certain property and for certain research or experimental expenditures

Impact

The potential impact of LB492 on state laws centers around taxation and fiscal incentives. By allowing these deductions, the state may see a shift in how income tax is calculated for eligible individuals and businesses. This change could potentially stimulate economic activity, encouraging investments in properties and fostering an environment conducive to research and development initiatives. Proponents argue that these deductions could lead to increased employment and greater economic growth in the long run, particularly within research-intensive sectors.

Summary

LB492 is a legislative proposal aimed at allowing certain income tax deductions related to property costs and specific research or experimental expenditures. The bill seeks to support businesses and individuals engaged in research and those owning property by providing tax relief. By enabling income tax deductions on these expenses, the bill is intended to promote investment in property and innovation within the state.

Contention

However, the bill may also face criticism and contention regarding its fiscal implications. Opponents could argue that while the intent is to foster economic growth, the loss of tax revenue from these deductions could strain state resources. Additionally, there may be concerns about who precisely will benefit from these deductions and whether certain areas or demographics could be left out of the advantages intended to stimulate investment. This discussion will likely involve a wider dialogue about balancing tax incentives with the need for adequate public services financed through tax revenue.