Revenue committee hears bill to clarify pass‑through entity tax and require detailed notices of deficiency

Sen. Brad Von Gillern, chair of the revenue committee, introduced LB401 on behalf of a bill he said has two aims: “to provide technical clarity and to increase transparency for taxpayers in Nebraska.”

The bill would clarify how pass‑through entity tax (PTET) elections are made — stating the election must be made on the entity's return for the year the election is made — and would treat refundable credits as available for tax years beginning on or after July 1, 2022, “without regard to the year in which the taxes were paid.” The bill also would require that notices of deficiency issued by the Department of Revenue include a written statement explaining the reasons for the department's determination.

Why it matters: Supporters said LB401 removes technical uncertainty for businesses using the…