News Updates

The Legislature has just one constitutionally required job – pass a balanced budget. That job just got exponentially more difficult on Friday when the Nebraska Economic Forecasting Advisory Board met and predicted that the state will be an additional $190 million in the red for our current fiscal year. They also estimate that in fiscal year 2025-2026 revenue will be down by an additional $100 million, and fiscal year 2026-2027 it will drop $90 million more.

Here's what's happening...

The Nebraska Examiner is launching a new resource to break down election margins by legislative and congressional districts for state, federal and ballot measure races in recent years.

In his annual letter to shareholders, JPMorgan Chase chief executive Jamie Dimon has expressed concerns about the impact of U.S. tariffs and the global trade war on economic growth. He said: "The economy is facing considerable turbulence . . . with the potential positives of tax reform and deregulation and the potential negatives of tariffs and 'trade wars.'" Mr. Dimon raised the risk of a U.S. and global recession to 60% following the recent trade barriers introduced by President Donald Trump. He warned that tariffs could undermine economic confidence and investments, commenting: "The quicker this issue is resolved, the better because some of the negative effects increase cumulatively over time." He also highlighted the uncertainty surrounding interest rates and the potential derailment of expectations for modest U.S. growth.

As a much-needed four-day break from the Capitol comes to an end, the Legislature readies itself for more debate on some hot topics.

Last week marked the last week of hearings and half-day floor debate. It also ended a multi-day filibuster against LB415, which makes changes to the Nebraska Healthy Families and Workplaces Act (paid sick leave initiative) passed by voters in November 2024.

"We need to come up with that money for those people that we passed over," says State Sen. Brian Hardin of Gering.

Tax credits to offset property taxes owed to local K-12 school districts are now automatically applied, but Nebraskans still need to file for income tax credits for community colleges for additional relief each year.

Last week was one of those times when we ask ourselves why we live in Nebraska. It was 80 degrees on Monday and Wednesday there was a historic blizzard that knocked out power for thousands that live in the eastern part of the state.

FinCEN has issued an Interim Final Rule (IFR) removing the requirement for U.S. companies and U.S. persons to report beneficial ownership information (BOI). Additionally, the rule updates filing deadlines for foreign entities: • Foreign entities registered before the IFR’s publication must file BOI reports within 30 days of that date. • Foreign entities registered on or after the IFR’s publication must file within 30 calendar days of receiving notice that their registration is effective.

Gov. Jim Pillen issued an emergency declaration for 24 counties because of Wednesday's blizzard. The blizzard brought as much as a foot of snow to some areas and winds gusting over 70 mph, leading numerous highways to shut down and causing extensive damage to trees and power lines.

AICPA has outlined its 2025 tax priorities, urging Congress to raise the reporting threshold for Form 1099-K from $600 to $10,000. In a letter to congressional finance leaders, Melanie Lauridsen, the AICPA's vice president of Tax Policy & Advocacy, said, "Our tax legislation priorities include recommended proposals that would reduce uncertainty and complexity for taxpayers." The AICPA also advocates for permanent tax relief for those affected by natural disasters and the extension of certain provisions from the Tax Cuts and Jobs Act. Other recommendations include maintaining the qualified business income deduction and preserving the cash method of accounting for tax purposes. The IRS has delayed the implementation of the $600 threshold, treating 2024 and 2025 as transition years.

Up-to-date information on state legislation and its status.

Utah lawmakers recently passed legislation eliminating 150- and 120-credit-hour requirements for CPA licensure in state statutes. Utah Gov. Spencer Cox is expected to sign the bill, which will then become law on July 1, 2026, according to the Utah Association of CPAs.

Friday marked the 44th day of the session. If we are lucky, that will have been the half-way point of the session. With 44 days to go (or 46), senators will now turn their focus to priority bills, 81 of which have been selected. The remaining 25 Speaker priority bills will be announced on Monday, March 17.

It’s the week we’ve all been waiting for! No, not Sine Die - priority deadlines.

The bullish pay projections come as finance chiefs’ confidence in economic and business conditions soared to a 10-quarter high.

A federal district court order means that millions of small businesses need to be prepared to file beneficial ownership information reports.

AICPA President and CEO Mark Koziel, CPA, CGMA has released a statement highlighting the need for the IRS to have the ability to meet the needs of taxpayers and tax preparers during this filing season.

The IRS will lay off thousands of probationary workers in the middle of tax season, according to two sources familiar with the agency’s plans, and cuts could happen as soon as next week. However, IRS employees involved in the 2025 tax season were told they will not be allowed to accept a buyout offer from the Trump administration until after the taxpayer filing deadline, according to a letter sent recently to IRS employees.