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LB 50

Change provisions relating to the distribution of the nameplate capacity tax

109th Legislature (2025-2026) Introduced by Barry DeKay and 2 co-sponsors

LB 50 directs 5% of nameplate capacity tax receipts to the community college area where the facility is located, with the remaining 95% to local taxing entities.

Approved by Governor on June 4, 2025
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Bill Summary · LB 50

Summary — LB 50 (2025)

Change provisions relating to the distribution of the nameplate capacity tax

Overview / Purpose

LB 50 amends Nebraska law to change how revenues from the nameplate capacity tax (a tax on private renewable energy generation facilities) are distributed. The principal purpose is to restore a revenue stream to community colleges that was “unintentionally lost” following a recent funding model change: the bill directs 5% of nameplate capacity tax receipts to the community college area in which a facility is located, with the remainder continuing to be distributed to local taxing entities.

Key provisions

  • Amends section 77-6204, Reissue Revised Statutes of Nebraska.
  • Requires county treasurers to distribute nameplate capacity tax revenue received from the Department of Revenue as follows:
    • 5% of such revenue is distributed to the community college area where the renewable energy facility is located.
    • The remaining 95% is distributed to local taxing entities that, but for the personal property tax exemption, would have received distributions from depreciable personal property used directly to generate electricity from wind, solar, biomass, or landfill gas.
  • Clarifies that a local taxing entity’s eligibility for distribution is not affected when the net book value of such personal property becomes zero; eligibility is affected only by disposal of all exempt depreciable personal property used directly to generate electricity.
  • Specifies the allocation method among eligible local taxing entities: each entity’s proportion equals the taxes it levied during the taxable year divided by the total levies of all eligible entities; that fraction is applied to the revenue pool for distribution.
  • Prohibits the Department of Revenue from retaining any revenue collected under sections 77-6201 to 77-6204 for the state General Fund.

Who is affected

  • Nebraska community college areas — receive a new/returned 5% share of nameplate capacity tax revenues from private renewable energy facilities located within their service area.
  • Local taxing entities (counties, municipalities, school districts, etc.) — continue to receive the remainder (95%) distributed among eligible entities, reducing their share by the 5% allocated to community colleges.
  • Owners/operators of private renewable energy generation facilities — the tax collection mechanism is unchanged; distribution recipients change.

Fiscal/Procedural notes

  • Fiscal notes for LB 50 were filed (dates: Feb 18, 2025 and May 13, 2025). The bill text and committee materials indicate the intent to restore community college revenue; specific dollar impacts are in the fiscal notes (not reproduced here).
  • The Department of Revenue is barred from diverting these receipts to the General Fund.

Legislative history and disposition

  • Introduced Jan 9, 2025 (Sen. Barry DeKay). Referred to Revenue Committee; heard Feb 19, 2025; advanced from committee.
  • Passed Legislature on Final Reading 45–3–1 on May 30, 2025; presented to Governor May 30, 2025.
  • Approved by the Governor June 4, 2025; became law (original section 77-6204 repealed and replaced).

Stakeholder positions (from committee record)

  • Proponents included Nebraska community colleges, Nebraska Chamber of Commerce & Industry, Governor’s Policy Research Office, Nebraska Community College Association, Nebraska Farmers Union.
  • Opponents included representatives from the City of Wayne and local business interests; county and municipal associations provided neutral testimony.

If you want, I can extract or summarize the fiscal note(s) to show estimated dollar impacts on community colleges and local taxing entities.

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

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