PREPARED BY: Clinton Verner
LB 14 DATE PREPARED: July 30, 2024
PHONE: 402-471-0056
Revision: 01
FISCAL NOTE
Revised to include agency comment. LEGISLATIVE FISCAL ANALYST ESTIMATE
ESTIMATE OF FISCAL IMPACT – STATE AGENCIES (See narrative for political subdivision estimates)
FY 2024-25 FY 2025-26
EXPENDITURES REVENUE EXPENDITURES REVENUE
GENERAL FUNDS $200,787 ($171,456,000) $125,700 ($176,600,000)
CASH FUNDS
FEDERAL FUNDS
OTHER FUNDS
TOTAL FUNDS $200,787 ($171,456,000) $125,700 ($176,600,000)
Any Fiscal Notes received from state agencies and political subdivisions are attached following the Legislative Fiscal Analyst Estimate.
LB14 creates a refundable credit against the income tax imposed by the Nebraska Revenue Act of 1967, allows the use for any
individual who rents a house, apartment, or other resident ial unit in the state during the taxable year for use as such individual’s primary
residence. The credit is set as equal to five percent of the total amount of the rent paid b y the individual during the ta xable year.
No basis to disagree with the administrative impact of this legislation to the Department of Revenue as provided by the agency. No
basis to disagree wit h the agency that General Fund revenues could be as high as the estimates as it has provided below:
Fiscal YearGeneral Fund Revenues
FY24-25 (171,456,000)$
FY25-26 (176,600,000)$
FY26-27 (181,898,000)$
ADMINISTRATIVE SERVICES STATE BUDGET DIVISION: REVIEW OF AGENCY & POLT. SUB. RESPONSE
LB: 14 AM: AGENCY/POLT. SUB: Department of Revenue
REVIEWED BY: Neil Sullivan DATE: 7/30/2024 PHONE: (402) 471-4179
COMMENTS: The Department of Revenue assessment of fiscal impact from LB 14 appears to be reasonable.
LB 0014 Fiscal Note 2024
State Agency Estimate
State Agency Name: Department of Revenue Date Due LFO:
Approved by: James R. Kamm Date Prepared: 07/30/2024 Phone: 471-5896
FY 2024-2025 FY 2025-2026 FY 2026-2027
Expenditures Revenue Expenditures Revenue Expenditures Revenue
General Funds $200,787 ($171,456,000) $125,700 ($176,600,000) $125,700 ($181,898,000)
Cash Funds
Federal Funds
Other Funds
Total Funds $200,787 ($171,456,000) $125,700 ($176,600,000) $125,700 ($181,898,000)
Major Objects of Expenditure
24-25 25-26 26-27 24-25 25-26 26-27
Class Code Classification Title FTE FTE FTE Expenditures Expenditures Expenditures
A21211 Fiscal Compliance Analyst 2.0 2.0 2.0 $94,500 $94,500 $94,500
Benefits…………………………………………………………………………………………………………. $31,200 $31,200 $31,200
Operating Costs…………………………………………………………………………………………………. $65,087
Travel……………………………………………………………………………………………………………
Capital Outlay…………………………………………………………………………………………………... $10,000
Capital Improvements…………………………………………………………………………………………...
Total……………………………………………………………………………………………………………. $200,787 $125,700 $125,700
For taxable years beginning on or after January 1, 2024, a new refundable tax credit for individuals renting a
house, apartment, or other residential unit in Nebraska for use as their primary residence. The credit is 5% of the
total of rent paid during the taxable year.
It is estimated that this bill will have the following impacts on General Fund revenues.
Fiscal Year
General Fund
Revenues
FY 2024-25 ($171,456,000)
FY 2025-26 ($176,600,000)
FY 2026-27 ($181,898,000)
Note that the bill does not define “other residential unit”. The fiscal impact above does not account for residence
halls/dorm apartments for college/university or parent charging rents to dependents.
LB 14 requires a one-time programming charge of $65,087 paid to the OCIO to add a line to Form 1040N and as
well as to the NebFile online filing system. The Department of Revenue will also need to hire 2.0 FTE of Fiscal
Compliance Analyst to implement the bill.