Editor's Note: While we understand that due to redistricting boundaries in Nebraska, Matt Williams is technically no longer our Senator, we elected him to serve our area in the State Legislature - which he has now done for two terms. Therefore, we are continuing to publish his weekly recaps for the remainder of this, his final session as a State Senator.

Greetings from your State Capitol ! This week's debate on the floor of the Legislature was again dominated by discussions on the budget, the criminal justice system, and tax cuts. The budget package was passed on final reading and sent to the Governor for his approval and LB873 advanced through the legislative process.

LB873 is an omnibus tax bill that, as amended, will exempt 100% of social security benefits from the State's income tax by tax year 2025. In addition, it will lower the top individual income tax rate from 6.84% to 5.84% over five years. The top corporate income tax rate will also be lowered to 5.84% over four years. The bill also adds a refundable income tax credit for property taxes paid to Community Colleges. Finally, it sets a floor for the existing refundable income tax credit that was created in 2020 for property taxes paid to K-12 school districts. It is important to keep taxes competitive with neighboring states as we work to attract and retain workers and businesses in the state. I am pleased to support the package of tax cuts and property tax relief contained in LB873 as I have always done in my time as a Senator.

I am also pleased to report the advancement of my personal priority bill, LB1069. LB1069 extends the Rural Workforce Housing Program for five years so that rural areas of the State can continue to build on the overwhelming success of the first five years of the program. The bill lowers the match for grants and makes several other technical changes to the program. I am pleased the budget bills this year include an additional $40 million of State funding dedicated to rural workforce housing.

Both LB873 and LB1069 have further steps in the process to become law, but I am confident in their eventual passage this session. The bill allocating over $1.04 billion in federal funds through the American Rescue Plan and corrections reform will continue to take up much of the floor debate as we wind down this session.

As always, feel free to contact me anytime at (402) 471-2642 or mwilliams@leg.ne.gov. Thanks again for your continued support.

Matt