LINCOLN — Nebraska officials are preparing for the elimination of the state’s alternative minimum tax, a change that takes effect next year.
The Department of Revenue issued a reminder Monday that the law will go into effect in January 2014. The law was one of several small-scale tax measures that lawmakers and Gov. Dave Heineman approved in the legislative session earlier this year.
Nebraska has been one of nine states that still impose an alternative minimum tax, which was created to ensure that residents who use tax shelters pay at least something.
The law’s sponsor, Sen. Paul Schumacher of Columbus, has said many of those tax shelters no longer exist, and the law hurts residents with high medical bills, mortgages and other tax-deductible expenses.
Another new state tax law will allow businesses to spread financial losses over a 20-year period instead of five. Supporters have said the legislation could help high-tech startup companies endure the financial losses they often face in their fledgling years.
Nebraska tax experts say the measure may not be enough by itself to attract new businesses, but it will make it easier for high-tech startups that have large research and programming costs.
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