LINCOLN- On Monday, Sen. Lou Ann Linehan's controversial LB753 took effect, allowing Nebraskans to earn tax credits for making donations to certain scholarship-granting organizations working with private and faith-based schools. The law offers dollar-for-dollar tax credits to both individuals and entities in the state.

As per the law, which was passed in 2023, $25 million in tax credits will be available in 2024, with the same amount available next year as well. After that, the limit for tax credits will grow to a maximum of $100 million per years, with individuals and businesses barred from claiming more than $100,000 in annual credits. Estates and Trusts, however, would be capped at $1 million per year.

The bill fell under heavy scrutiny before and after its passage, and even prompted the creation of the opposition group Support Our Schools Nebraska, which launched a successful petition drive that will allow Nebraskans to decide the fate of LB753 this November. Before that, however, those who donate will still be eligible for the tax credits. Support Our Schools Nebraska argued that the tax credits won't help schools or families in rural Nebraska, as all three of the certified scholarship-granting organizations outlined in LB753 reside in the Omaha and Lincoln areas.

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