Income tax credit for Nebraska crisis pregnancy center donations survives vote

But it remains to be seen if Legislative Bill 937, the multimillion-dollar tax package introduced by State Sen. Eliot Bostar of Lincoln, can survive the next two rounds of consideration, given the state’s fiscal constraints. The package cleared first-round debate on a 40-0 vote.

“We’re running out of time and we’re running out of money,” warned State Sen. Mike Jacobson of North Platte, who sat out the vote to advance the bill.

Others said they would vote to keep the package alive until the Legislature gets an updated cost estimate for it, then start the process of deciding what measures the state can afford. Lawmakers have room to increase spending or cut taxes by about $20 million per year before sending the budget into the red.

If every bill that has cleared at least one round of debate were to pass, the state general fund would be nearly $370 million in the hole by June 30, 2027, according to the Legislative Fiscal Office. That total does not include the cost of LB 937 or bills awaiting first-round debate.

$2 million in tax credits for pregnancy center donors

While some senators expressed uneasiness about the size of LB 937, which has 12 other bills amended on to it, the biggest controversy concerned a piece of the package that would allocate up to $2 million for tax credits to benefit people who donate to crisis pregnancy centers.

Such centers, called pregnancy help organizations in the bill, help women who carry pregnancies to term. They are typically nonprofits that offer supports and services from an anti-abortion perspective.

The provision was based on LB 606, introduced by Sen. Joni Albrecht of Thurston last year. She also introduced legislation last year aimed at banning abortion after the first six weeks of pregnancy. Lawmakers ultimately passed a bill to ban abortion after 12 weeks gestation.

On Thursday, Albrecht said pregnancy centers are needed more than ever, following the U.S. Supreme Court’s 2022 decision to let states decide whether or when to allow abortion. She introduced the measure to provide support for the centers.

“What these centers are all about is helping women,” she said. “They are helping the state of Nebraska.”

But opponents accused the centers of providing misleading information in their quest to stop women from seeking abortions and said the centers lack the medical expertise of other reproductive health centers.

Sen. Wendy DeBoer of Bennington also argued against providing tax credits for the full value of a person’s donation. She said that amounts to a state appropriation to the centers.

“If you get all your money back for that, it’s not charity,” she said, adding: “We have so many tax credits now and all of these special interests get tax credits, what does the regular guy get?”

Bostar offered an amendment that would have expanded the pregnancy center tax credit to other organizations that help pregnant women. His amendment would have allowed tax credits for donating to organizations that refer for, recommend or promote abortions, while still barring credits for groups that provide, pay for or cover abortions.

But Albrecht admently opposed the change, saying she did not want the credits going to any group that might refer women to abortion providers. Bostar’s amendment failed, with 17 votes in favor and 24 against. Lawmakers then voted 28-15 to include the pregnancy center tax credit in the bill.

Other provisions of LB 937 would provide or expand income tax credits for people who care for elderly or disabled family members, biodiesel producers, making movies or videos in Nebraska, using sustainable aviation fuel, hiring or providing services to people with intellectual or developmental disabilities, donating to food banks, maintaining short-line railroads and installing reverse osmosis systems in homes.

Another provision would benefit organizations that buy up and forgive medical debts for low-income people. Lawmakers also added an amendment to exempt diapers, for people of all ages, from sales taxes.