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LB 757

Provide a sales and use tax exemption for the purchase of an aircraft to be leased between related companies

109th Legislature (2025-2026) Introduced by Brad von Gillern

Nebraska bill exempts aircraft purchases from sales tax when leased between related companies, reducing state revenue but potentially attracting aircraft leasing businesses.

Notice of hearing for January 22, 2026
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Bill Summary · LB 757

Legislative bill overview

LB 757 would exempt aircraft purchases from Nebraska's sales and use tax when those aircraft are acquired for leasing between related companies. The bill creates a specific tax incentive for inter-company aircraft leasing arrangements, allowing related entities to avoid state sales tax on aircraft purchases used in such transactions.

Why is this important

This exemption would reduce the cost of acquiring aircraft for companies engaged in related-party leasing, potentially making Nebraska a more attractive location for aircraft leasing operations. However, it also represents foregone state tax revenue and raises questions about whether this targeted tax break is justified compared to other business incentives or public investments.

Potential points of contention

  • Tax base erosion: The exemption reduces revenue available for state services unless offset by increased economic activity or other revenue sources
  • Definitional scope: "Related companies" requires clear definition to prevent tax avoidance schemes and unintended loopholes
  • Competitive fairness: Unrelated aircraft lessors and other industries may question why this sector receives preferential treatment while their sectors do not
  • Economic benefit justification: Uncertainty about whether the tax savings will generate sufficient job creation or economic growth to offset lost revenue

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

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