Senate hearing: bill to create tax credits for domestic‑violence and trafficking service providers funded by repealing data‑center exemptions

Senator Eliot Bostar told the committee LB1131 would create a new, marketable tax credit program to provide ongoing support for nonprofit organizations that deliver shelter, legal advocacy, and long‑term services to survivors of domestic violence and human trafficking. The bill would make $6 million in credits available annually; the credits would be refundable and transferable so nonprofits could sell them to raise capital. To offset the credit cost, the bill proposes eliminating sales and use tax exemptions for certain data center equipment and related personal property; sponsor and staff estimated the lost data center exemptions have ranged from about $5.1 million to $7.1 million in recent annual reports and said timing differences in claiming credits would affect year‑one net impacts in the fiscal note.

Providers, law enforcement and faith‑based organizations strongly supported LB1131, describing rising demand for services, federal funding declines (VOCA reductions), shelter capacity strains, and the need for predictable funding to avoid closed satellite offices in rural counties. Several witnesses said stable state funding prevents return to unsafe situations for survivors and supports long‑term recovery. Committee members questioned the fiscal note timing and the Department of Revenue’s assumptions about taxable activity; the sponsor said staff are working with the Revenue and Fiscal offices on these technical issues.