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LB 853

Provide an income tax adjustment related to certain federal tax deductions

109th Legislature (2025-2026) Introduced by George Dungan

LB 853 modifies Nebraska income tax law to allow certain federal tax deductions currently disallowed under state rules, adjusting taxpayer obligations and state revenue.

Notice of hearing for February 19, 2026
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Bill Summary · LB 853

Legislative bill overview

LB 853 adjusts Nebraska's income tax treatment to allow certain federal tax deductions that would otherwise be disallowed under current state law. The bill modifies how Nebraska residents can claim specific deductions on their state tax returns in alignment with or divergence from federal tax rules. The exact scope of which deductions are affected remains unclear from the legislative history provided.

Why is this important

Income tax deductions directly affect how much state tax Nebraska residents and businesses owe, making this a fiscal matter with real consequences for household and business finances. Changes to tax code can either broaden or narrow the tax base, potentially affecting state revenue and individual tax burdens. This type of conformity adjustment between state and federal tax law is common but can significantly impact taxpayers depending on which deductions are involved.

Potential points of contention

  • Revenue impact uncertainty: Without knowing which specific deductions are affected, the fiscal impact on state revenues is unclear, which may concern legislators focused on budget implications
  • Fairness and equity questions: Different treatment for different income groups or business types could arise depending on which deductions are prioritized
  • Complexity in tax compliance: Additional divergence between federal and Nebraska tax rules may complicate filing for residents and require more sophisticated tax preparation

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

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