Nebraska lawmakers advance bill offering private school scholarship tax credits

LINCOLN — A invoice that may supply tax credit for donations to scholarship funds for personal and faith-based faculties has now made it additional than all earlier makes an attempt within the Nebraska Legislature, gathering sufficient votes to cross the primary spherical of debate Wednesday. 

Legislative Invoice 753 is the newest in a string of comparable payments launched by State Sen. Lou Ann Linehan of the Omaha space meant to supply extra faculty selection alternatives. The invoice overcame a three-day filibuster Wednesday earlier than advancing in a 31-12 vote. 

As launched, LB 753 would make $25 million accessible for credit in 2024, with annual will increase in this system of as much as 25% attainable in future years. A committee modification that additionally was authorized Wednesday would maintain this system at $25 million for 2 years, then permit it to develop to a most of $100 million a yr.

The modification additionally would cap credit at $100,000 yearly for people and companies and at $1 million for estates and trusts.

The Nebraska Legislature has thought of comparable measures in every of the final 5 years, however all have failed. Final yr’s proposal fell 5 votes brief on a filibuster-ending cloture movement.

This time round, LB 753 narrowly overcame the first-round filibuster, reaching cloture by means of a 33-12 vote. 

“I am thrilled we acquired cloture,” Linehan stated. “I am disenchanted we did not get everyone.”

Assist from a number of Democrats, together with Omaha Sens. Terrell McKinney, Justin Wayne and Mike McDonnell, proved to be difference-maker this yr. McKinney and Wayne repeatedly spoke out in help of LB 753, saying it might present households of their district extra choices for higher schooling. 

“These households are bored with being informed to attend,” McKinney stated. 

On the similar time, a handful of Republican lawmakers held off pledging their help for the invoice, with Sens. Tom Brandt of Plymouth, Myron Dorn of Adams and Jana Hughes of Seward being current not voting on the underlying invoice. On Tuesday, Brandt expressed reservations with LB 753, studying statements from an op-ed printed by former lawmaker Curt Friesen that doubted the invoice’s advantages to rural college students and taxpayers. 

Hughes stated she helps the general intent of LB 753 however has some issues. She declined to elaborate and stated she is working with Linehan to deal with them. Linehan stated she hopes to have 45 out of the Legislature’s 49 lawmakers supporting the invoice by the point it reaches its last votes. 

“We’ll get to one thing that everybody can help,” Linehan stated. 

One new modification Linehan stated she already plans to carry would make clear that the invoice would help college students throughout all of Nebraska, based mostly on issues that it might solely profit Omaha-area college students. 

LB 753 is a component of a bigger schooling bundle proposed by Gov. Jim Pillen that may, amongst different issues, present an extra $1 billion to public schooling funding by means of a brand new element of the state’s normal fund. Linehan stated she believed as soon as the opposite schooling funding proposals are ironed out, her invoice will achieve help from lawmakers who have been involved that it might take away funding from underserved public faculties. 

Some opponents additionally argued LB 753 would profit faculties that discriminate towards college students, and would quantity to a tax credit score for the rich. The Institute of Taxation and Financial Coverage (ITEP), a nationwide nonprofit, launched an announcement towards the invoice Tuesday. It stated in states which have handed comparable measures, the majority of the credit are being claimed by rich households. 

“These tax credit are among the many most important instruments eroding the general public schooling system and propping up non-public faculties,” the assertion learn.

In the meantime, supporters contend that LB 753 is crucial to supply low-income college students the means to entry higher schooling. They argue that many public faculties are decrease high quality than non-public faculties, which opponents disputed. 

“That is the best way we get youngsters out of poverty,” stated Sen. Christy Armendariz of Omaha.