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Panel considers decoupling Nebraska from federal 100% bonus depreciation for structures

Nebraska Legislature Revenue Committee · February 19, 2026

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Summary

LB853 would stop Nebraska from adopting a new HR1 provision allowing 100% bonus depreciation for certain nonresidential structures, with sponsors citing $30M+ in savings and opponents warning the change would discourage in‑state investment and create administrative burdens.

Senator George Dungan told the committee LB853 would decouple Nebraska from a new federal provision that permits 100% bonus depreciation for certain nonresidential structures placed in service by the end of 2030. He said the fiscal note shows roughly $36 million in savings in the current biennium and argued the provision could allow out‑of‑state projects to reduce Nebraska tax receipts.

OpenSky’s Lillian Butler Hale supported the decoupling as a revenue measure and to avoid subsidizing projects built out‑of‑state. Opponents from the Nebraska Chamber and accounting organizations warned that recoupling would discourage manufacturing and capital investment, create complexity and administrative burden for taxpayers and the Department of Revenue, and that apportionment rules already attribute income across states.

Senator Dungan said he is willing to consider language changes to narrow the bill’s scope if the committee wants to address only out‑of‑state effects. The committee took testimony from both sides and closed the hearing; further drafting changes were discussed as possible next steps.