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LINCOLN — After two months of higher-than-expected tax revenues, Nebraska’s monthly general fund receipts fell just before economic forecasters will update the state’s projected budget deficit.
Nebraska’s September tax receipts show a net loss of 6.6% under what Nebraska’s Economic Forecasting Advisory Board predicted in April, according to the state Department of Revenue. That equates to roughly $47 million in less revenue in the state’s coffers.
That followed tax receipts from July and August, which came in modestly above projections and brought in an additional $32 million. Appropriations Chair State Sen. Rob Clements of Elmwood said while September’s drop is “disappointing,” he wasn’t too concerned, because overall net receipts for the current fiscal year remained relatively flat.
Net tax receipts so far for fiscal year 2025-26 are about 0.9% below forecasts — a difference of about $15 million, the Revenue Department noted.
The biggest contributor to the drop was corporate income tax receipts, which came in 31% below projections, a loss of $56 million. Clements said he suspects that this is ImagiNE Act tax credits accelerating in September, based on information he received from a department analyst.
The ImagiNE Act is an economic incentive program for businesses expanding in or relocating to Nebraska.
Clements said the program was expected to dole out about $36 million in credits over 12 months, but it’s distributed roughly $22 million over the last three months alone.
The incentives, within limits under state law, allow businesses to pick which tax year to take the tax credits, which can make predicti ng the timing more difficult.
