Over $ 50 Million in New Nebraska Property Tax Credit Goes Unclaimed | Regional government



The so-called intermediary entities had particular problems in claiming the credits. These are business structures, such as partnerships, for which income taxes are paid by individuals. This created complex situations in which each owner was only entitled to a small amount of credit for a property, forcing some to forfeit the money.

Legislation passed this year gives flow-through entities the option to claim the 2020 credit when they file 2021 tax returns, if they abandon the credits this year. These entities could represent a portion of the $ 50 million in unused credits. Burger predicted they wouldn’t make a significant difference.

Gov. Pete Ricketts spokesman Taylor Gage said other Nebraska residents who allegedly failed to apply for the credit could still do so by amending their tax returns.

Gage said the amount of unclaimed credits was “expected” given the novelty of the program and the difficulties with flow-through entities. He called the program a “major success”, pointing to the substantial growth in funds allocated to property tax relief in its first two years.

He also said the governor estimated that any part of the $ 50 million left after taxpayers had a chance to claim it should go towards future property tax relief.

Under current law, unclaimed tax credits would remain in the general state fund. Using those dollars, as Gage suggested, would require legislative action.


Leave A Reply

Your email address will not be published.