PREPARED BY: Scott Danigole
LB 76 DATE PREPARED: August 02, 2024
PHONE: 402-471-0055
Revision: 01
Updated for additional response FISCAL NOTE
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 $113,987 $0 $43,900 ($1,503,000)
CASH FUNDS
FEDERAL FUNDS
OTHER FUNDS
TOTAL FUNDS $113,987 $0 $43,900 ($1,503,000)
Any Fiscal Notes received from state agencies and political subdivisions are attached following the Legislative Fiscal Analyst Estimate.
LB 76 contains the Employee Contributions Tax Incentive Act. The purpose of the act is to provide an income tax reduction for
employed individuals on dues and assessments paid to labor organizations.
Under section 4, an individual may exclude any employee contribution beginning on or after January 1, 2025, to the extent such
contribution is included in federal adjusted gross income.
The Department of Revenue estimates the provisions of LB 76 will require one-time programming charges and 1.0 additional FTE.
These costs are estimat ed to be $113,987 in FY25 and ongoing costs of $43,900 beginning in FY26. The se estimates appear to be
reasonable.
The bill’s provisions for income tax reductions are estimated to be $1,503,000 in FY26 and $1,356,000 beginning in FY27 There is no
basis to disagree with these estimates. LB 0076 Fiscal Note 2024
State Agency Estimate
State Agency Name: Department of Revenue Date Due LFO:
Approved by: James R. Kamm Date Prepared: 08/02/2024 Phone: 471-5896
FY 2024-2025 FY 2025-2026 FY 2026-2027
Expenditures Revenue Expenditures Revenue Expenditures Revenue
General Funds $113,987 $ 0 $43,900 $ (1,503,000) $43,900 $ (1,356,000)
Cash Funds
Federal Funds
Other Funds
Total Funds $113,987 $ 0 $43,900 $ (1,503,000) $43,900 $ (1,356,000)
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
829112 Revenue Op Clerk II 1 1 1 $37,770 $37,770 $37,770
Benefits…………………………………………………………………………………………………………. $6,200 $6,200 $6,200
Operating Costs…………………………………………………………………………………………………. $65,087
Travel……………………………………………………………………………………………………………
Capital Outlay…………………………………………………………………………………………………... $5,000
Capital Improvements…………………………………………………………………………………………...
Total……………………………………………………………………………………………………………. $113,987 $43,900 $43,900
The Employee Contributions Tax Incentive Act will provide an income tax reduction for employed individuals
on dues and assessments paid to labor organizations. For taxable years beginning or deemed to begin on or after
January 1, 2025, an individual may reduce his or her federal adjusted gross income by the amount of dues and
assessments the employee paid to labor organizations.
LB 76 is estimated to have the following impact on the General Fund revenues:
Fiscal Year GF Revenues
FY 2024-25
FY 2025-26 $ (1,503,000)
FY 2026-27 $ (1,356,000)
The operative date for this bill is January 1, 2025.
LB 76 requires a one-time charge of $65,087 paid to the OCIO for by adding a line to 1040N, and NebFile. The
Department of Revenue will also need to hire 1 FTE Revenue Operation Clerk II for implantation of LB 76.