Revenue committee hears governor‑backed LB1109 to repeal select tax exemptions and credits

Senator Brad Von Gillern introduced LB1109, described in committee as a follow‑up to last year’s "LIFO 1" effort, saying the bill targets underused or outlived sales and use tax exemptions and some incentive credits as part of a package to help balance the state's budget. Von Gillern said the proposal avoids consumer items with high state return and that a renewable‑generation tax credit would be fully phased out effective 2026. He estimated LB1109 would increase general funds by roughly $15–$16 million per year over three years.

Neil Sullivan, state budget administrator, testified for the governor, saying LB1109 rolls back several incentive programs, limits the research tax credit to company tax liability, and repeals seven sales tax exemptions. He and supporters argued a broader sales tax base makes the state’s revenue more stable and could help deliver property tax relief if other pieces of the budget fall into place.

Opponents pressed specifics. The Nebraska Cooperative Council warned removing the mineral‑oil exemption (used as a dust suppressant in grain elevators) and a lab‑testing exemption would raise costs for farmer‑owned cooperatives and producers, citing Department of Revenue estimates of nearly $900,000 in mineral‑oil revenue statewide. Representatives of Wayuka Cemetery testified the site is a state‑created public cemetery and historic park established in statute; speakers described roughly $62,000 associated with the exemption for that cemetery and urged the committee to treat the site like other state entities or consider alternatives such as nonprofit status or targeted relief.

Von Gillern closed the LB1109 hearing after committee questions; no committee action was recorded.