Bill
LB 391
The bill creates a privately funded Enable accounts program for Nebraskans with disabilities, seeded by donations and a state tax deduction for contributors.
Status: Approved by Governor June 4, 2025 (enacted)
Introduced: January 17, 2025 • Primary sponsor: Sen. Dave Murman • Cosponsors: Sen. Bostar, Sen. Rountree
Purpose
- Establish a privately funded program to create and seed Enable (ABLE-style) accounts for Nebraskans with disabilities and to encourage private and employer donations by providing a Nebraska income tax adjustment for contributors.
Key provisions
- Name: Sections 1–5 are codified as the Give to Enable Support Act (title changed from “Scholarship” to “Support” during amendment/engrossment).
- Definitions (Sec. 2): Adopts terms consistent with existing Nebraska law (e.g., “account” and “qualified disability expenses” per §77-1401). A “qualified individual” is a person with a disability who does not already have an account when approved.
- Give to Enable Support Cash Fund (Sec. 3): Creates a trust fund administered by the State Treasurer that accepts contributions from private individuals and entities. No General Fund transfers are allowed. Money available for investment is invested by the state investment officer under existing state investment statutes. The enacted text provides that the principal shall not be expended except for investment.
- Give to Enable Support Program (Sec. 4): Program begins January 1, 2026. The State Treasurer administers the application process and establishes accounts for approved qualified individuals. Application window is January 1–June 1 annually. The Treasurer may approve as many applications as funding allows. Approved applicants will have an account established by April 1 of the year following approval and funded at least the minimum amount required to open the account (or a larger amount at the Treasurer’s discretion). Accounts are governed by existing §§77‑1401 to 77‑1409.
- Rules (Sec. 5): Grants the State Treasurer authority to adopt rules to implement the Act.
- Tax adjustment (Sec. 6): Amends Nebraska’s income tax adjustment statute (§77‑2716) to allow contributions to the Give to Enable Support Cash Fund to be treated as an income tax adjustment (i.e., donors may claim a state tax deduction for contributions). The bill’s statement of intent clarifies that employer matching contributions are intended to qualify for the deduction.
Who is affected
- Qualified individuals with disabilities (potential recipients of seeded Enable accounts).
- Donors (private individuals, entities, and employers) who may receive a Nebraska tax adjustment for contributions.
- State Treasurer’s Office (program and fund administration) and state investment officer (investment of fund assets).
- Nebraska Department of Revenue (administration of the tax adjustment; potential revenue effects).
Timeline and procedural notes
- Program effective start date: January 1, 2026 (application windows begin that date).
- Legislative actions: Passed final reading May 30, 2025 (45–3–1); presented to governor May 30; approved by governor June 4, 2025.
- Fiscal notes: Two fiscal notes were filed (Jan 29 and May 12, 2025); the law does not appropriate General Funds and relies on private contributions, though the tax deduction could reduce state income tax receipts (see fiscal notes for estimates).
Potential impacts (summary)
- Positive: Lowers barrier to saving for qualified disability expenses by seeding accounts; incentivizes private and employer giving through a state tax benefit.
- Considerations: The program’s scale depends entirely on private donations; the income tax adjustment could reduce state revenue to the extent contributions are deducted. The State Treasurer has broad discretion over approvals and funding levels.
Compiled from official sources — confirm details with the bill’s official record.
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