Opposed to LB1244
Bill will sunset NHTC 4 years Earlier than planned
On February 2nd 2026, PAL submitted the following comment in opposition of LB1244, particularly the early dismantling of the Nebraska State Historic Tax Credit (NHTC). We encourage our members to also comment in opposition.
Dear Members of the Revenue Committee,
I am writing on behalf of the Preservation Association of Lincoln to express strong opposition to LB1244, specifically the provisions that seek to move the application deadline for the Nebraska State Historic Tax Credit NHTC from December 31, 2030, to June 30, 2026. This accelerated sunset of the Nebraska Job Creation and Mainstreet Revitalization Act would dismantle one of the state's most successful tools for economic development, community revitalization, and heritage preservation.
The NHTC is not a giveaway; it is a proven investment vehicle that yields significant returns for Nebraska’s economy. According to the 2025 NHTC Annual Report from the Nebraska Department of Revenue, the program has demonstrated an incredible ability to leverage private investment. The data shows that since the program’s inception, for every dollar of tax credit issued, multiple dollars of private investment have been injected back into our local economies. Specifically, the report notes that from 2015 through 2020, the expenditures of projects undertaken using the NHTC have totaled $202 million. These projects have had a total economic impact of $226.2 million and have contributed $9.4 million in state and local taxes, fostering growth in both urban centers and rural "Main Street" communities.
Shortening the lifespan of this credit by four years will create immediate market instability. Real estate development, particularly the rehabilitation of historic structures, requires long-term planning and financial certainty. By moving the deadline to mid-2026, the Legislature is effectively ending the program today for any large-scale project currently in the pre-development or financing phase.
The real-world impact of the NHTC is visible across our state, as highlighted by the Nebraska State Historic Tax Credit StoryMap:
Small Town Revitalization: In communities like Fairbury, the NHTC helped breathe life into the Bonham Theater, that stands today as the only operating movie theater in Jefferson County thanks to the efforts of a group of concerned citizens that fundraised donations and secured $142,000 in NHTC to reopen the theater
Housing Solutions: In Omaha, the rehabilitation of numerous buildings including the Colonial Apartments and Dewey Avenue Rowhouses have contributed to addressing our state's critical housing shortage while preserving architectural character. The NHTC has been critical for supporting housing creation in rural communities as well with examples such as the vacant brewery turned apartments at the Hastings Brewery and Bottleworks.
Rural Economic Engines: The Moon Block in Red Cloud demonstrates how the NHTC serves as a catalyst for tourism and local commerce in Greater Nebraska, creating jobs in construction and long-term service sectors.
The 2025 Annual Report confirms that the program is working exactly as intended: it increases local property tax bases, generates temporary and permanent employment, and saves historic assets that would otherwise face the wrecking ball. Eliminating this credit prematurely would leave many planned projects across the state without the gap financing necessary to remain viable.
I urge the Committee to indefinitely postpone LB1244. Let us honor the original 2030 commitment and continue to support the revitalization of Nebraska’s unique historic landscapes.
Sincerely,
Jeff Erb
President, Preservation Association of Lincoln