Don’t Forget to Claim the Property Tax Credit

Don’t forget to claim the refundable income tax credit for property taxes paid to schools on 2021 income tax filings. The tax credit, created with passage of LB 1107 in 2020, equals 25.3 percent of property taxes paid to schools in 2021. It applies to property taxes paid on real property (land, buildings, residences) excluding taxes levied for bond repayments or taxes levied as a result of voter-approved levy limit overrides. Nebraska Farm Bureau estimates the credit, when combined with the Tier 1 property tax credit program, provides an average property tax reduction of $6,319 per farm or ranch, roughly 24 percent of average property taxes paid in 2021.

Nebraska Farm Bureau prepared a document with information on the credit and steps on how to claim it which can be found at: https://www.nefb.org/refundable-income-tax-credit-for-property-taxes-paid-to-schools-guide/. The guide also contains links to additional information and forms from the Nebraska Department of Revenue.