Nebraska LB 803: Adopt the Dry Pea and Lentil Resources Act

Bill Text

LEGISLATIVE BILL 803
Approved by the Governor April 16, 2026

Introduced by Revenue Committee: von Gillern, 4, Chairperson; Bostar, 29;
Jacobson, 42; Kauth, 31; Murman, 38.

A BILL FOR AN ACT relating to revenue and taxation; to amend sections 13-3105,
77-1315, and 77-3510, Reissue Revised Statutes of Nebraska, sections
13-3108, 77-1502, 77-1601, 77-1776, and 77-3512, Revised Statutes
Cumulative Supplement, 2024, sections 13-3103, 13-3106, 13-3403, 77-1632,
77-2716, and 77-3506, Revised Statutes Supplement, 2025, and section 2,
Legislative Bill 901, One Hundred Ninth Legislature, Second Session, 2026;
to adopt the First-Time Home Buyer Savings Account Act; to change
provisions relating to the Sports Arena Facility Financing Assistance Act,
the Property Tax Growth Limitation Act, property tax valuation and levy
procedures, and homestead exemptions; to require a joint public hearing
regarding property tax valuation and political subdivision budgets; to
provide an adjustment to income for income tax purposes; to change
provisions relating to certain refundable income tax credits; to harmonize
provisions; to provide operative dates; to repeal the original sections;
to outright repeal sections 77-1630 and 77-1634, Revised Statutes
Cumulative Supplement, 2024, section 77-1631, Revised Statutes Supplement,
2025, and section 77-1633, Revised Statutes Supplement, 2025, as amended
by section 1, Legislative Bill 384, One Hundred Ninth Legislature, Second
Session, 2026; and to declare an emergency.
Be it enacted by the people of the State of Nebraska,
Section 1. Sections 1 to 8 of this act shall be known and may be cited as
the First-Time Home Buyer Savings Account Act.
Sec. 2. The Legislature declares that the purpose of allowing taxable
income to be reduced by contributions to and earnings from a first-time home
buyer savings account is to encourage first-time home ownership through
incentivizing saving for a downpayment and closing costs because of the
significant financial and civic benefits home ownership provides for this
state.
Sec. 3. For purposes of the First-Time Home Buyer Savings Account Act:
(1) Account holder means an individual who establishes an account with a
financial institution that is designated as a first-time home buyer savings
account;
(2) Department means the Department of Revenue;
(3) Eligible expenses means a downpayment and any closing costs included
on a real estate settlement statement, including, but not limited to, appraisal
fees, mortgage origination fees, and inspection fees or any downpayment costs
and fees that may be included as part of financing the construction of a
primary residence;
(4) Financial institution means a bank, savings bank, building and loan
association, savings and loan association, or credit union, whether chartered
by the United States, the Department of Banking and Finance, or a foreign state
agency; any other similar organization which is covered by federal deposit
insurance; or a trust company;
(5) First-time home buyer means an individual who:
(a) Has never owned or purchased under contract for deed, either
individually or jointly, a single-family, owner-occupied primary residence,
including, but not limited to, a condominium unit or a manufactured or mobile
home that is assessed and taxed as real property; or
(b) As a result of the individual's dissolution of marriage, has not been
listed on a property title for at least three consecutive years or more;
(6) First-time home buyer savings account or account means an account with
a financial institution designated as a first-time home buyer savings account
in accordance with section 4 of this act; and
(7) Qualified beneficiary means a first-time home buyer designated by an
account holder for whom the money in a first-time home buyer savings account is
or will be used for eligible expenses for the purchase of the qualified
beneficiary's primary residence.
Sec. 4. (1) Beginning January 1, 2027, any individual may open an account
with a financial institution and designate the account, in its entirety, as a
first-time home buyer savings account to be used to pay or reimburse a
qualified beneficiary's eligible expenses for the purchase or construction of a
primary residence in Nebraska. An individual may be the account holder of
multiple accounts, and an individual may jointly own the account with another
person if they file a joint income tax return. To be eligible for the
subtraction under subsection (27) of section 77-2716, an account holder must
comply with the requirements of this section.
(2) An account holder must designate, no later than April 15 of the year
following the taxable year during which the account is established, a first-
time home buyer as the qualified beneficiary of the first-time home buyer
savings account. The account holder may designate himself or herself as the
qualified beneficiary. The account holder may change the designated qualified
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beneficiary at any time,