LINCOLN- Under the Appropriations Committee‘s most recent budget plan, Nebraska would devote more than $1.45 billion to direct property tax relief over two years. The state's long-standing property tax credit program will be increased by $63 million, enough for the credits to grow by 2% annually from their 2019 peak. Compared to the current year, the new program gives income tax credits to property owners to offset part of their school property taxes will more than double in size. The budget also provides homestead exemptions for low-income elderly and disabled homeowners.

"That's quite a bit of money," said Sen. John Stinner of Gering, the committee chairman. "What it represents is a commitment by the governor and the Legislature. This was one of our top priorities."

The money for property tax relief comes from sales, income and miscellaneous taxes. The latest move by the Appropriations Committee adds $25 million more into the program for the current year and $38 million more for 2022. The total property tax relief amounts to $1.45 billion and will put $50 million in each of the two budget years into the state's 'rainy day' fund. This infusion money will put the reserve at an estimated $763 million by June 2023.

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