Legislature Adjourns Sine Die
Yesterday, the Nebraska Legislature adjourned Sine Die for the year, after a productive session that included the closing of an over $350 million budget deficit, the implementation of the paid sick leave and minimum wage ballot measures and protection of the continued phase-in of the historic income and corporate tax cuts.
In all, during the 2025 session, the Nebraska Legislature held 726 hearings, passed 209 bills, passed another 113 introduced bills as amendments on bills that passed, and sent one constitutional amendment proposal to the Secretary of State to be presented to the voters in the 2026 (adding an additional term to Nebraska’s current 2-term limit in the Unicameral.)
Like most years, a number of key bills passed in the closing days of session.
One bill in particular that we’ve been focused on has been LB649, the Defense Efforts Workforce Act, which passed on Final Reading on Friday by a 44-4 vote. The bill, as amended, creates a new defense-specific tax credit to build on Nebraska’s footprint in the defense industry by incentivizing employers to move jobs to the state. Under the new program, qualifying defense contractors with at least 10 high-skill employees that make 150% of the statewide average wage, and that establish or expand operations in the state, can receive a 5% wage credit. LB649 has the potential to significantly enhance the contributions of the defense industry to greater Omaha’s economy, which already creates a $2.9 billion economic impact to our state.
The Legislature also passed LB415, which modified the Nebraska Healthy Families and Workplaces Act, and clarified the paid sick leave requirements set to go into effect on October 1 of this year. The changes in LB415 include exempting employers with 10 or fewer employees, independent contractors, and employees under age 16. It also mandates that employees must have complete 80 hours of work before accruing sick time, and clarifies that sick time does not have to be paid out at the end of employment. LB415 passed on Final Reading last Wednesday 33-16 and was signed by Governor Pillen on Friday.
In addition to bills that did pass, we’re also pleased about what didn’t. The Nebraska Legislature took no action to pause or delay the historic income and corporate tax cuts that were passed in 2023 and will lower Nebraska’s income taxes for a household making over $55,000 from 6.84% to 3.99% by 2027, as well as a lowing of the corporate tax rate from 7.81% to 3.99%. This tax relief is crucial to supporting increased economic growth, and keeping Nebraska competitive with our neighbors, many of which have significantly lower rates.
Thank you to everyone that has reached out to us with questions and input this past legislative session. We appreciate all your investment in the Greater Omaha Chamber, and for your interest in strengthening the voice of Omaha’s business community in the legislative process.
Now that the first year of the two-year biennium cycle has ended, our work shifts to interim studies and continuing our progress in the 2026 session. If you have any suggestions or questions regarding legislative interim studies or the 2026 session, we’d love to hear from you! We’re always available at advocacy@omahachamber.org.
Jennifer Creager
Senior Vice President, Public Policy
808 Conagra Dr., Ste. 400, Omaha, NE 68102
Lincoln Office: 402-474-4960
For more information, visit our Public Policy page or contact Jennifer Creager at 402.474.4960.
You can read the Legislature’s Update to learn more about the happenings in Lincoln.