Revenue Committee Hears Hours of Testimony on LB509 Scholarship Tax Credit; No Vote Taken

At a public hearing before the Nebraska Legislature’s Revenue Committee, senators heard more than three hours of testimony for and against LB509, a bill that would create a state income tax credit for contributions to scholarship-granting organizations (SGOs) that fund student scholarships to approved nonpublic schools.

The bill’s introducer, Sen. Tony Sorrentino, opened by saying the measure is aimed at “the children of the state of Nebraska” and described LB509’s mechanics: a tax credit capped initially at $25 million, priority tiers for low‑income and other eligible students, certification and reporting requirements for SGOs, a 10% administrative cap on SGOs’ overhead, and limits on how much a taxpayer may claim in a single year.

Why it matters: LB509 would formally authorize a tax-credit route to private‑school scholarships after two prior, related measures drew sustained public attention and litigation. Supporters said the program restores options for families who already used temporary scholarships; opponents said the measure would divert revenue, lacks adequate nondiscrimination and accountability safeguards for recipient schools, and would run counter to voter referenda last year.

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