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February 27, 2021
Question

Neb Governor recently allowed deducting 1/2 of home property taxes be deducted from state income tax.

  • February 27, 2021
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As a real estate property tax relief measure, the Neb Governor recently allowed deducting 1/2 of home property taxes be deducted from state income tax.

1 reply

March 1, 2021

The Nebraska Property Tax Incentive Act that provides for a refundable income tax credit beginning in tax year 2020. This credit is available to individuals, corporations, fiduciaries, and financial institutions that pay school district real property taxes in Nebraska.  See Link:  Nebraska Dept. of Revenue

 

The credit is determined by multiplying the amount of school district taxes, defined by the Act as property taxes levied on real property in Nebraska by a school district or multiple district school system, excluding property taxes levied for bonded indebtedness or any levy override approved by voters, by a credit percentage. This credit percentage is 6% for 2020.

 

Nebraska Property Tax Credit Computation Form

 

When and Where to File. Form PTC must be filed with the Nebraska income tax or financial institution tax return on which the credit is claimed or the school district property tax paid is distributed. The credit is only available for income tax years beginning on and after January 1, 2020. Individuals and entities filing their returns on a fiscal year beginning prior to January 1, 2020 should not complete this form.

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