LINCOLN- This week the Nebraska Department of Revenue issued their 2020 Tax Expenditure Report. This report, as required by statute, provides a review of tax and fee expenditures, which is required in even numbered years to enable the Legislature to better determine those sectors of the economy that are receiving indirect subsidies as a result of tax exemptions, deductions, exclusion, credit, or deferral.

Those expenditures included in the report are those that generate state or local revenue annually in excess of $2 million, and are listed by group, and alphabetically. For example the first entry examnes the agricutlrue sector of the state, with machinery and equipment first on the list with a total sales and use tax exemption of $217,981,000. Other items for example include repair parts and services on common carriers at $17,080,000, and food or food ingredients at $206,392,000.

As the 2021 session approaches we believe that this document will be a key instrument as several members look to a complete restructuring of Nebraska’s tax system. We encourage you to review this document by clicking HERE.