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LB 938

Adopt the First-Time Home Buyer Savings Account Act and provide for income tax adjustments

109th Legislature (2025-2026) Introduced by Bob Andersen and 9 co-sponsors

Nebraska bill establishes tax-advantaged savings accounts for first-time homebuyers with income tax adjustments to help workers accumulate down payments.

Notice of hearing for February 12, 2026
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WeVote Research Nonpartisan
Bill Summary · LB 938

Legislative bill overview

LB 938 would establish a First-Time Home Buyer Savings Account program in Nebraska and adjust state income tax provisions related to these accounts. The bill creates a tax-advantaged savings mechanism allowing first-time homebuyers to set aside funds with potential tax benefits to reduce barriers to homeownership.

Why is this important

Housing affordability and down payment accumulation remain significant obstacles for first-time homebuyers, particularly in lower and middle-income brackets. Tax-advantaged savings accounts can meaningfully increase purchasing power by allowing funds to grow with reduced tax burdens, potentially enabling more Nebraskans to achieve homeownership.

Potential points of contention

  • Revenue impact: Income tax adjustments will reduce state tax revenue; the fiscal cost and whether it benefits primarily higher-income earners needs scrutiny
  • Account eligibility criteria: Questions about income limits, geographic restrictions, property price caps, and definition of "first-time buyer" will determine whether benefits reach intended populations or create inequities
  • Program administration: Implementation costs, oversight mechanisms, and whether accounts interact predictably with federal tax incentives (like the federal First-Time Homebuyer programs) require clarity

Compiled from official sources — confirm details with the bill’s official record.

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