Revenue committee advances bill rolling back recent tax incentives to help close projected budget gap

Lawmakers advanced LB650, a revenue committee bill that rolls back a set of recently created tax incentives and exemptions, after floor debate that ranged from technical fixes to broader objections over who will shoulder the state’s budget gap.

The bill, introduced on the floor by Senator Von Gillen, would rescind or narrow several credits and exemptions and is projected by the bill sponsor to increase state revenue by about $71,000,000 in the upcoming biennium; the sponsor said that figure covers roughly one-quarter of a projected $289,000,000 shortfall for the next biennium beginning July 1, 2025.

Supporters said the measure follows a ‘‘last in, first out’’ approach that pares back the most recently created incentives while preserving longer-standing programs. "LB 650 pairs back programs and business incentives that were all granted in the past several years and seeks to increase revenue by eliminating tax incentives or pairing them back," Senator Von Gillen said on the floor. Proponents argued the state has a constitutional obligation to present a balanced budget and that this package is one of several steps — along with appropriations…