{"id":36700,"date":"2024-07-30T08:02:59","date_gmt":"2024-07-30T14:02:59","guid":{"rendered":"https:\/\/update.legislature.ne.gov\/?p=36700"},"modified":"2024-07-30T08:02:59","modified_gmt":"2024-07-30T14:02:59","slug":"bill-would-provide-income-tax-credit-for-renters","status":"publish","type":"post","link":"https:\/\/update.legislature.ne.gov\/?p=36700","title":{"rendered":"Bill would provide income tax credit for renters"},"content":{"rendered":"

Nebraska renters would be eligible to claim an income tax credit on rent paid during the previous year under a bill considered July 29 by the Revenue Committee.<\/p>\n

\"Sen.
Sen. Eliot Bostar<\/figcaption><\/figure>\n

LB14, introduced by Lincoln Sen. Eliot Bostar, would create a refundable income tax credit for individuals who rent a house, apartment or other residential unit in the state for use as their primary residence. The credit would equal 5% of the total amount of rent paid by an individual during the previous taxable year, beginning Jan. 1, 2024.<\/p>\n

The Legislative Fiscal Office estimates an impact of $153 million to state revenues in fiscal year 2024-25 and FY2025-26 if the credit were fully claimed.<\/p>\n

Bostar said midwestern metro areas have seen faster rent increases than any other region of the country in the last six months and both Lincoln and Omaha have seen the average rent increase by around 40% over the past decade.<\/p>\n

These rapidly rising rents exacerbate the state\u2019s workforce challenges, he said. Passing a property tax relief bill alone won\u2019t necessarily improve the situation, Bostar added, because landlords likely will price units based on the highest price renters are willing to pay, not on what it costs them to provide a rental unit.<\/p>\n

Erin Feichtinger, policy director of the Women\u2019s Fund of Omaha, testified in support of the proposal. The current vacancy rate in the Nebraska rental market is less than 2%, she said, whereas 7% or 8% is considered \u201chealthy.\u201d That imbalance of supply and demand needs to be addressed, she said.<\/p>\n

\u201cThe assertion that property tax relief for landlords will translate into lower rents for tenants is not possible in our current rental market without an intentional effort by our Legislature to pay attention to renters and to include them in that relief,\u201d Feichtinger said.<\/p>\n

Also speaking in support of the proposal was Carter Thiele, policy and research coordinator for the Lincoln Independent Business Association. He said LB14 would provide immediate financial relief to families who are renting, which would translate to greater financial stability and purchasing power to help stimulate local economies.<\/p>\n

\u201cThis bill could operate as part of a comprehensive effort to reduce the overall tax burden on Nebraska residents,\u201d Thiele said.<\/p>\n

No one testified in opposition to the bill and the committee took no immediate action on it.<\/p>\n","protected":false},"excerpt":{"rendered":"

Nebraska renters would be eligible to claim an income tax credit on rent paid during the previous year under a bill considered July 29 by the Revenue Committee.<\/p>\n","protected":false},"author":1,"featured_media":36690,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"colormag_page_container_layout":"default_layout","colormag_page_sidebar_layout":"default_layout","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[17,21],"tags":[264],"class_list":["post-36700","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-revenue","category-special-session","tag-sen-eliot-bostar"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/update.legislature.ne.gov\/wp-content\/uploads\/2024\/07\/LB14Bostar7-29-24b.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/update.legislature.ne.gov\/index.php?rest_route=\/wp\/v2\/posts\/36700","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/update.legislature.ne.gov\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/update.legislature.ne.gov\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/update.legislature.ne.gov\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/update.legislature.ne.gov\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=36700"}],"version-history":[{"count":4,"href":"https:\/\/update.legislature.ne.gov\/index.php?rest_route=\/wp\/v2\/posts\/36700\/revisions"}],"predecessor-version":[{"id":36702,"href":"https:\/\/update.legislature.ne.gov\/index.php?rest_route=\/wp\/v2\/posts\/36700\/revisions\/36702"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/update.legislature.ne.gov\/index.php?rest_route=\/wp\/v2\/media\/36690"}],"wp:attachment":[{"href":"https:\/\/update.legislature.ne.gov\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=36700"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/update.legislature.ne.gov\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=36700"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/update.legislature.ne.gov\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=36700"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}