Report: Big Beautiful Bill will cost Nebraska $400 million in tax revenue over four years
LINCOLN, Neb. (KLKN) — The changes to the federal tax code will also affect revenue at the state level, officials say.
On Tuesday, the Nebraska Department of Revenue published an analysis of President Donald Trump’s “One Big Beautiful Bill” on the state’s tax revenue.
The report says Nebraska will lose $406.5 million in tax money over the next four fiscal years.
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Nebraska income taxes are calculated based on federal adjusted gross income, so changes that affect AGI affect Nebraska’s revenues.
And when it comes to corporate taxes, Nebraska bases its tax on federal taxable income, so any change to that number will impact how much the state takes in.
The biggest projected impact on Nebraska comes from changes to the business deduction for property depreciation.
In general, the state’s analysis found, deductions will increase, decreasing corporations’ taxable income.
Nebraska is forecast to lose almost $130 million in revenue because of those changes.
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The increase in the state and local tax deduction is also projected to reduce Nebraska’s tax receipts.
That will lower taxpayers’ AGI, which reduces the amount of their income that Nebraska can tax.
It’s expected to cost the state $60.2 million over the next four years.
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You can read the full analysis below.
