Nebraska State Tax Updates

Our Dash of SALT Blog provides the most recent developments and changes in state and local tax regulations. Here are the latest updates for Nebraska.

August 31, 2026

Nebraska Considers Additional Taxes on Data Centers Amid Review of Industry Incentives

Authored by: Katie Nguyen, CPA and Will Hardiman, JD

Nebraska policymakers are reevaluating the state’s tax incentives for data centers amid concerns about their impact on electricity demand, water resources, and local infrastructure. Governor Jim Pillen recently suggested that additional taxes on data centers may be warranted, arguing that facilities placing significant demands on public resources should contribute more to the communities in which they operate. To support that effort, Nebraska has created a 17-member task force to study the industry and develop recommendations for future legislation.

The review follows recent state actions that reduced tax benefits for data centers, including an executive order excluding the industry from incentives available under the ImagiNE Nebraska Act and legislation eliminating certain tax exemptions for data center equipment. Supporters of these changes argue that incentives should be limited to projects that provide clear economic benefits, while others contend that data centers generate jobs, expand the local tax base, and increase tax revenues for host communities.

If you have questions about state taxation of technology companies, please reach out to a member of the Withum SALT Team.

April 12, 2024

Nebraska Proposed New 7.5% Gross Receipts Tax on Advertising Services

Authored by: Emilia Jarrin and Penny Sweeting, CPA

Nebraska proposed Bill LB388 to implement a new gross receipts tax on advertising services. Previous bills (LB1310 and LB1354) creating an Advertising Services Tax Act never passed the Revenue Committee. The new bill combines the gross receipts tax with property tax reform. The Act will impose a tax on companies operating in Nebraska whose combined gross advertising revenue exceeds one billion dollars. If passed, the Nebraska tax would apply to all forms of advertising services, including digital ads. The proposed gross receipts tax rate is 7.5% on the “assessable base.” The Act defines “assessable base” as the “portion of gross advertising revenue that is derived from sales to customers where services are delivered within Nebraska.” For sourcing, gross revenue from digital advertising is considered within Nebraska if it is received on a user’s device with an IP address located within Nebraska.

If you have questions about state digital advertising taxes, please reach out to a member of the Withum SALT Team.

September 7, 2023

Nebraska Adopts an Elective Pass-Through Entity Tax

Authored by: Jessie Racioppi and Jonathan Weinberg, JD, LLM, Principal

Nebraska Department of Revenue Legislation Bill 754 (LB754) enables eligible partnerships and S corporations to make an irrevocable pass-through entity tax election. Under LB754, taxpayers may make retroactive elections for tax years back to January 1, 2018. For tax years beginning on or after January 1, 2023, the election must be made prior to the filing due date of the income tax return, including any extensions. Pass-Through Entity Tax (PTET) elections must be uploaded to the Nebraska Department of Revenue website.

Eligible partnerships include any entity, including limited liability corporations, treated as a partnership for federal tax purposes and are not publicly traded. An eligible S corporation includes any entity that is subject to tax under Internal Revenue Code Subchapter S.

If you have questions about making Pass-Through Entity Tax elections, please reach out to a member of the Withum SALT Team.

Disclaimer: Please note this is the information that is readily available at this time, it is subject to change so please consult your Withum tax advisor.