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LB 931

Provide an income tax credit related to premium payments for a qualified health plan

109th Legislature (2025-2026) Introduced by John Cavanaugh and 1 co-sponsor

LB 931 creates a Nebraska state income tax credit for individuals paying qualified health plan premiums to reduce insurance costs and improve healthcare affordability.

Referred to Revenue Committee
0
WeVote Research Nonpartisan
Bill Summary · LB 931

Legislative bill overview

LB 931 would establish an income tax credit for Nebraska taxpayers who pay premiums for qualified health plans. The bill appears designed to reduce the after-tax cost of health insurance by allowing eligible individuals to claim a credit against their state income tax liability. The specific eligibility criteria, credit amount, and plan types covered would be defined in the bill's provisions.

Why is this important

Health insurance costs represent a significant financial burden for many individuals and families. An income tax credit could make coverage more affordable and encourage enrollment in health plans, potentially improving healthcare access and reducing the number of uninsured residents. However, the fiscal impact on state tax revenues and whether the credit effectively targets those most in need depends entirely on the bill's parameters.

Potential points of contention

  • Cost to state budget: The revenue impact of the credit is unknown without seeing specific eligibility thresholds and credit amounts; this could range from minimal to substantial depending on design
  • Targeting and fairness: Questions about whether the credit is progressive (helping lower-income earners most) or regressive, and whether it benefits those already insured versus expanding coverage
  • Interaction with federal credits: Potential overlap or coordination issues with existing federal ACA tax credits and subsidies, which already provide assistance based on income levels

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

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