The Nebraska Department of Revenue (DOR) issued a report on the effects the federal Coronavirus Aid, Relief, and Economic Security Act (CARES Act)1 will have on the state’s tax revenue. Nebraska statute adopts the provisions of the Internal Revenue Code (IRC) on a rolling basis.2 However, after any changes are made to the IRC, the DOR is required to issue a report within 60 days to evaluate the changes in the IRC and the impact they will have on state revenue.3
The report outlines the changes made by the CARES Act and describes which changes will have a detrimental impact on Nebraska tax revenue if no statutory changes are made. Nebraska used estimates provided by the Joint Committee on Taxation to determine that the CARES Act changes as enacted would decrease revenue collection by $98 million for FY 2020–2021, $71 million for FY 2021–2022, and $61 million for FY 2022–2023.
The Nebraska Legislature suspended session in March prior to the enactment of the CARES Act changes to the IRC. Nebraska intends to resume its session on July 20 and is expected to address several issues relating to the COVID-19 pandemic. At this time, the state has not issued any guidance relating to the CARES Act provisions. On June 10, 2020, the Norfolk Daily News reported that Senator Tom Briese believes the state should decouple from some of the changes made by the CARES Act.
1 Public Law No: 116-136 (March 27, 2020): Coronavirus Aid, Relief, and Economic Security Act.
2 Neb. Rev. Stat. § 77-2714.
3 Neb. Rev. Stat. § 77-27,222.
TECHNICAL INFORMATION CONTACTS:
Mark L. Nachbar
Principal
Ryan
630.515.0477
mark.nachbar@ryan.com
Mary Bernard
Director
Ryan
401.272.3363
mary.bernard@ryan.com
Kevin Zelesky
Senior Consultant
Ryan
401.272.3363
kevin.zelesky@ryan.com
The material presented in this communication is intended to provide general information only and should solely be seen as broad guidance and not directed to the particular facts or circumstances of any individual who may read this publication. No liability is accepted for acts or omissions taken in reliance upon the content of this piece. Before taking (or not taking) any action, readers should seek professional advice specific to their situation from Ryan, LLC or other tax professionals. For additional information about this topic, please contact us at info@ryan.com.
- Sujet
- Mark L. Nachbar