Nebraska lawmakers advance bill allowing for tax credits to pregnancy resource centers

Nebraska lawmakers advanced a slew of tax credits on Thursday, including measures that provide benefits for family caregivers, film production crews and sustainable airline fuel.

The bill (LB937) from Lincoln Sen. Eliot Bostar, which was used by the Legislature's Revenue Committee to package 10 other tax credit bills together, advanced from the first round of debate on a 40-0 vote.

But getting to that point wasn't easy, as senators sought to remove a portion of the package creating a tax credit for donations to centers that provide resources but not medical care to pregnant women.

Originally introduced last year as LB606 by Sen. Joni Albrecht of Thurston, the version included in the Revenue Committee package establishes a dollar-for-dollar tax credit to donors who give to nonprofit organizations that support pregnant and parenting women.

Albrecht's bill, which seeks to incentivize donations to centers she said provide free pregnancy testing and ultrasound services, counseling and basic needs to pregnant women, as well as child care, classes and other services to new mothers, would help those organizations serve more women.

The bill, which Albrecht said will aid centers throughout the state that provide crucial care, was backed by the Nebraska Family Alliance, Nebraska Right to Life and the Nebraska Catholic Conference.

Opponents of Albrecht's portion of the bill called the measure a "poison pill" that threatened to sink legislation the vast majority of senators said they supported.

In a news conference Thursday morning, abortion rights advocates said the tax credit, which is capped at $2 million per year, would not expand access to reproductive care in Nebraska, but would instead proliferate what they described as "predatory centers" that mislead and withhold critical information from pregnant women.

"These fake women's health centers use deceptive tactics on vulnerable pregnant people with one goal: to dissuade them from abortion," said Ruth Richardson, president and CEO of Planned Parenthood North Central States.

Omaha Sen. Megan Hunt, speaking on the floor of the Legislature Thursday morning, said Albrecht's intention "might seem commendable at first glance" but carried the potential for harm, and providing tax incentives meant the state would endorse practices that run counter to evidence-based medical guidance.

"The problem is these clinics do not offer or refer for comprehensive health care services, including prenatal care, contraception or abortion if that's what needed for the patient," Hunt said.

As debate carried on into Thursday afternoon, senators huddled on the sidelines to find a potential path forward, which culminated in Omaha Sen. John Cavanaugh requesting the bill be divided into two parts for consideration — a request that was granted.

The first part contained the version of LB606 advanced to the floor of the Revenue Committee — Albrecht originally sought $10 million in tax credits annually, while the committee reduced that amount to $2 million — while the second part included the remainder of the committee's version of LB937.

Bostar later attempted to amend Albrecht's portion of the bill with a broader definition of the kinds of organizations that donors could give to in order to receive tax credits.

In addition to pregnancy resource centers, Bostar's amendment would have included shelters for victims of domestic violence or human trafficking, but Albrecht announced she was "adamantly opposed" to his proposal.

The Legislature later rejected Bostar's proposal on a 17-24 vote before amending the committee's version of LB606 back into the main bill on a 28-15 vote.

Senators later moved the remainder of the package, including an amendment from Sen. Tom Brandt of Plymouth extending a tax credit for biodiesel purchases, back into LB937 on a 37-0 vote.

With the bill reassembled on the floor, Sen. John Cavanaugh introduced an amendment eliminating the sales tax on diapers.

The vote on Cavanaugh's amendment passed 31-4, with Sens. Rob Clements of Elmwood, Rick Holdcroft of Bellevue, Kathleen Kauth of Omaha, and Loren Lippincott of Central City voting against.

Other provisions of LB937 include:

* A tax credit up to $2,000 for individuals who care for a family member, as proposed by Bostar. If the caregiver’s family member is a veteran or has a diagnosis of dementia, they can be eligible for up to $3,000 in tax credits. A maximum of $2.5 million in credits is available annually.

* A gradual increase (LB1002 from Sen. Tom Brandt of Plymouth) in the yearly tax credits under the Nebraska Biodiesel Tax Credit Act to $5 million starting in 2025.

* Up to $1.5 million in new tax credits for film production companies that complete film, video or digital projects in Nebraska, as proposed by Sen. Rita Sanders of Bellevue in LB1022.

* A $1.50-per-gallon sales and use tax credit for certified air carriers that purchase sustainable aviation fuel, proposed by Lincoln Sen. George Dungan in LB1072.

* An income tax credit (LB1025 from Bostar) for employers who hire individuals with intellectual or developmental disabilities.

While LB937 won unanimous first-round support, several senators warned there might not be money available to support those tax incentives moving forward.

Speaker John Arch, prior to Thursday's debate, said that after the passing of the mid-biennium appropriations bills earlier this week that there was only $20 million remaining for bills on the floor.

And if every bill with spending attached currently on second or third round were to pass, the Legislature would find the state's general fund in a nearly $270 million hole when it meets next week.

That total doesn't include the cost of bills currently on the first round of debate — LB937 included.

Sen. Wendy DeBoer of Bennington said the Legislature was "spending a lot of money on tax credits," particularly on dollar-for-dollar credits, which she said lawmakers rarely review once passed.

"We don't ever have an opportunity, writ large, to look at them and their return on investment and balance them against other things," DeBoer said. "I'm a little concerned about all these tax credits."

Sen. Myron Dorn, a member of the budget-writing Appropriations Committee, also warned senators to be careful in how it reduced revenue flowing into the state's general fund moving forward.

"There are a lot of programs out there we would love to fund. They have a very good purpose and long-term we need to fund some of those," Dorn said. "But I don't think people are really getting the concept that there is no money."