PREPARED BY: John Wiemer
LB 526 DATE PREPARED: February 10, 2025
PHONE: 402-471-0051
Revision: 00
FISCAL NOTE
LEGISLATIVE FISCAL ANALYST ESTIMATE
ESTIMATE OF FISCAL IMPACT – STATE AGENCIES (See narrative for political subdivision estimates)
FY 2025-26 FY 2026-27
EXPENDITURES REVENUE EXPENDITURES REVENUE
GENERAL FUNDS $59,900 $8,997,000 $56,800 $13,923,000
CASH FUNDS
FEDERAL FUNDS
OTHER FUNDS
TOTAL FUNDS $59,900 $8,997,000 $56,800 $13,923,000
Any Fiscal Notes received from state agencies and political subdivisions are attached following the Legislative Fiscal Analyst Estimate.
LB 526 provides that public power districts may require direct payment or a letter of credit from cryptocurre ncy mining operations for the
cost of significant infrastructure upgrades necessitat ed by such operations and may impose terms and conditions on such
cryptocurrency mining operations. Such prepayment or financial assurances or terms and condit ions may be required or imposed for
any facility that used energy for cryptocurrency mining. Direct payments, letters of credit, and terms and conditions required or imposed
shall be fair , reasonable, and not unduly discriminatory. Before any direct payment , letter of credit, or terms and conditions are required
or imposed, the public power district shall conduct an independent grid impact study to determine the cost of significant infrastructure
upgrades necessitated by the cryptocurrency mining operation a nd the d irect payment, letter of credit, or terms and conditions required
or imposed.
The bill levies and imposes an excise tax of 2.5 cents per kilowatt hour on the energy used by cryptocurrency mining operations to
conduct cryptocurrency mining in excess of 1,000 kilowatt hours in a calendar year.
The tax shall:
• Not apply to data processing centers, cloud computing, or any other industrial or commercial entities not engaged in
cryptocurrency mining;
• Be paid by the cryptocurrency min ing operation and en forced by the Department of Revenue (DOR); and
• Be fair, reasonable, and not unduly discriminatory.
The excise tax shall be due and payable to the DOR monthly on or before the 20
th
day of the month next succeeding each mon thly
period. All these excise taxes collected by the DOR shall be credited to the General Fund.
The bill becomes operative on October 1, 2025.
The DOR estimates the following increase to General Fund revenues as a result of this bill:
• FY26: $8,997,000
• FY27: $13,923,000
• FY28: $14,365,000
• FY29: $14,821,000
The DOR also estimates the need to hire 0.5 FTE IT Applications Developer -Senior as a result of the bill.
There is no basis to disagree wit h these estimates by the DOR.
ADMINISTRATIVE SERVICES STATE BUDGET DIVISION: REVIEW OF AGENCY & POLT. SUB. RESPONSE
LB: 526 AM: AGENCY/POLT. SUB: Department of Revenue
REVIEWED BY: Ryan Yang DATE: 2/10/2025 PHONE: (402) 471-4178
COMMENTS: The Department of Revenue assessment of fiscal impact from LB 526 appears reasonable.
ADMINISTRATIVE SERVICES STATE BUDGET DIVISION: REVIEW OF AGENCY & POLT. SUB. RESPONSE
LB: 526 AM: AGENCY/POLT. SUB: Metropolitan Utilities District of Omaha
REVIEWED BY: Ryan Yang DATE: 1/28/2025 PHONE: (402) 471-4178
COMMENTS: No basis to disagree with the Metropolitan Utilities District of Omaha assessment of no fisca l impact
from LB 526. LB 0526 Fiscal Note 2025
State Agency Estimate
State Agency Name: Department of Revenue Date Due LFO:
Approved by: James R. Kamm Date Prepared: 02/10/2025 Phone: 471-5896
FY 2025-2026 FY 2026-2027 FY 2027-2028
Expenditures Revenue Expenditures Revenue Expenditures Revenue
General Funds $59,900 $ 8,997,000 $56,800 $ 13,923,000 $56,800 $ 14,365,000
Cash Funds
Federal Funds
Other Funds
Total Funds $59,900 $ 8,997,000 $56,800 $ 13,923,000 $56,800 $ 14,365,000
Major Objects of Expenditure
25-26 26-27 27-28 25-26 26-27 27-28
Class Code Classification Title FTE FTE FTE Expenditures Expenditures Expenditures
A07012
Information Technology Applications
Developer/Senior
0.5 0.5 0.5 $41,300 $42,700 $42,700
Benefits…………………………………………………………………………………………………………. $13,600 $14,100 $14,100
Operating Costs………………………………………………………………………………………………….
Travel……………………………………………………………………………………………………………
Capital Outlay…………………………………………………………………………………………………... $5,000
Capital Improvements…………………………………………………………………………………………...
Total……………………………………………………………………………………………………………. $59,900 $56,800 $56,800
LB 526 levies and imposes an excise tax of two and one-half cents ($0.025) per kilowatt hour on the energy used
by cryptocurrency mining operations to conduct cryptocurrency mining in excess of 1,000 kilowatt hours in a
calendar year, beginning October 1
st
2025. The tax is due and payable to the Department of Revenue (DOR)
monthly on or before the 20
th
day of the month.
Cryptocurrency mining is defined as a process to generate new cryptocurrency and verify blockchain transactions.
Cryptocurrency mining operations means any entity that conducts cryptocurrency mining.
This tax does not apply to data processing centers, cloud computing, or any other industrial or commercial entities
not engaged in cryptocurrency mining. The tax must be paid by the cryptocurrency mining operation; fair, reasonable, and not unduly discriminatory; and enforced by DOR. All taxes collected by DOR will be remitted to the State Treasurer for credit to the General Fund.
DOR may adopt and promulgate rules and regulations.
The estimated fiscal impact for LB 526 on the General Fund revenues are as follows:
FY25-26 $ 8,997,000
FY26-27 $ 13,923,000
FY27-28 $ 14,365,000
FY28-29 $ 14,821,000
DOR will need to hire 0.5 FTE IT Application Developer – Senior Level to add a new tax program into the
General Processing System and integrate with Business Automated Collection System. Please complete ALL (5) blanks in the first three lines. 2025
LB
(1) 526 FISCAL NOTE
State Agency OR Political Subdivision Name:
(2)
Metropolitan Utilities District of Omaha
Prepared by:
(3) Mark Myers Date Prepared:
(4)
01-24-2025 Phone:
(5)
402-504-7174
ESTIMATE PROVIDED BY STATE AGENCY OR POLITICAL SUBDIVISION
FY 2025-26 FY 2026-27
EXPENDITURES REVENUE EXPENDITURES REVENUE
GENERAL FUNDS
CASH FUNDS
FEDERAL FUNDS
OTHER FUNDS
TOTAL FUNDS
$0 $0
Explanation of Estimate:
Since the Metropolitan Utilities District of Omaha is not a public power district, LB526 is not expected to have a
financial impact to the District.
_____________________________________________________________________________________________________ _
BREAKDOWN BY MAJOR OBJECTS OF EXPENDITURE
Personal Services:
POSITION TITLE
NUMBER OF POSITIONS
25-26 26-27
2025-26
EXPENDITURES
2026-27
EXPENDITURES
Benefits………………………………...……
Operating…………………………...……….
Travel………………………………………..
Capital outlay…………………...…………..
Aid…………………………………………...
Capital improvements……………………...
TOTAL……………………………… ..... $0 $0