For a privately owned generation facility serving a single-site industrial customer with new load greater than 1,000 MW, the bill’s eminent-domain restriction applies only if the facility is co-located or adjacent, has an electrically equivalent grid interconnection point, and receives Nebraska Power Review Board approval. These are conditions on the eminent-domain protection, not a general approval requirement for data centers. The facility must receive board approval.

For that same eminent-domain protection, the private supplier and specified utilities and transmission owner must execute a long-term commercial agreement, approved by the utility governing body or bodies. The agreement must preserve specified utility service rights, provide acceptable commercial benefits, prohibit the industrial customer from reselling electricity, and waive eminent-domain authority over the generation assets for the contract’s duration. The provision applies to contracts for new industrial loads entered into on or before December 31, 2031. The agreement must include these terms.

An industrial customer in the covered arrangement must pay all costs, fees, congestion fees, and electric-system upgrade costs incurred by Nebraska consumer-owned utilities as a result of the project. The private generation facility must serve only that industrial customer unless the contracting utility or utilities approve a waiver. The customer must pay all project-related utility costs.

A data center could benefit if it qualifies as a single-site industrial customer with new electric load greater than 1,000 MW: a consumer-owned utility may not use eminent domain to acquire its privately owned generation facility, if the facility meets the siting and Nebraska Power Review Board approval requirements and the required utility and transmission contracts are approved and include an eminent-domain waiver. The subsection applies to contracts for new industrial loads entered into on or before December 31, 2031. The restriction on eminent domain

Effective July 1, 2026, the bill repeals the sales and use tax exemption for qualifying tangible personal property acquired by a data center operator for later use outside Nebraska, increasing the tax cost of those purchases. Repeal of the data-center exemption

Effective January 1, 2027, the bill removes the personal property tax exemption for qualifying data-center property assembled or otherwise prepared in Nebraska for subsequent use at a location outside the state. Personal property tax exemption removed

Provides a personal-property-tax exemption for tangible personal property acquired by a person operating a Nebraska data center when the property is assembled, engineered, processed, fabricated, manufactured, attached to, or incorporated into other property for subsequent use at a physical location outside Nebraska. The exemption also covers retaining or exercising control over the property in Nebraska while it awaits transportation out of state. The measure defines a data center to include the computing equipment, supporting infrastructure, and facilities used to store, manage, or disseminate data. data center means computers, supporting equipment, and other organized assembly of hardware or software

Includes data-processing, hosting, and related services (NAICS 518210), computer-facilities-management services (NAICS 541513), and computer-systems-design services (NAICS 5415) among the activities that can qualify a location as a qualified location under the ImagiNE Nebraska Act, subject to the act's eligibility requirements. The majority of the business activities is generally determined by employee counts, although alternative methods may be allowed by rule. Data Processing, Hosting, and Related Services 518210

Temporarily suspends state approvals for new data center projects while the state develops regulatory recommendations.

Temporarily pauses state action on new data center development on state-owned land while the task force conducts its review.

Data centers are ineligible for tax incentives under the ImagiNE Nebraska Act.

The Departments of Economic Development, Revenue, and Water, Energy and Environment must collaborate to review project proposals and assess whether they are in Nebraska’s best interest.

Local entities that develop data centers must follow the executive order’s guidelines.

Data centers must bear the costs of the infrastructure needed to serve them rather than shifting those costs to other ratepayers.

When reviewing a proposed amendment or addition to a Nebraska Advantage Act agreement, the Tax Commissioner must consider the Act’s objectives, which expressly include creating and retaining jobs related to large data centers. This may support incentive consideration for qualifying data-center expansions or project changes, but does not guarantee approval or incentives.

A data center primarily conducting Data Processing, Hosting, and Related Services (NAICS 518210) is expressly included as a qualified location under the ImagiNE Nebraska Act, which can support eligibility for the Act's incentives. The location's majority business activities must fall within the listed category; that determination is generally based on employee counts. This provision is operative July 1, 2026.

A data center primarily conducting Computer Facilities Management Services (NAICS 541513) is expressly included as a qualified location under the ImagiNE Nebraska Act. The location's majority business activities must fall within the listed category, generally measured by the number of employees working in each activity. This provision is operative July 1, 2026.

A data center primarily conducting Computer Systems Design and Related Services (NAICS 5415) is expressly included as a qualified location under the ImagiNE Nebraska Act. The location's majority business activities must fall within the listed category, generally measured by employee counts. This provision is operative July 1, 2026.

LB 901 repeals the sales and use tax exemption for qualifying data-center property assembled or otherwise incorporated for later use outside Nebraska, effective July 1, 2026 (the exemption is repealed).

LB 901 repeals the personal property tax exemption for qualifying data-center property prepared for subsequent use outside Nebraska, effective January 1, 2027 (Repeal of Data Center Personal Property Tax Exemption).

LB1080 exempted certain personal property from Nebraska property tax when a data-center operator acquired it and assembled, processed, manufactured, attached, or incorporated it into other tangible personal property for use outside Nebraska. The exemption was limited to that out-of-state-use purpose; the Department of Revenue says it is repealed effective January 1, 2027. The property-tax exemption · Repeal effective January 1, 2027

LB1080 exempted qualifying sales, leases, rentals, storage, use, or other consumption of tangible personal property and services from sales and use taxes when acquired by a Nebraska data-center operator and incorporated or otherwise processed into tangible personal property for subsequent use outside Nebraska. The exemption was limited to that out-of-state-use purpose; the Department of Revenue says it is repealed effective July 1, 2026. The sales and use tax exemption · Repeal effective July 1, 2026

No new applications for tier 2 benefits, including the large data center tier 2 category, may be filed after December 31, 2020. No new tier 5 applications may be filed after that date, including tier 5 projects sequential to tier 2 large data center projects.

A large data center seeking tier 2 benefits must invest at least $200 million in qualified property and hire at least 30 new employees for the data center.

A tier 2 large data center project must meet its required employment and investment levels by the end of the sixth year after the application year. Failure to meet or maintain the requirements can result in recapture or disallowance of tax benefits.

To claim Nebraska Advantage incentives, a data center must submit an application describing its employment and investment plan, provide supporting documents and specifications, demonstrate interdependence among multiple locations, pay the applicable application fee, and submit a timetable for expected sales-tax refunds.

The Tax Commissioner may take up to 180 days to approve or deny an application, with the period tolled while requested information is outstanding, and must prepare the written agreement within 180 days after approval. An application is deemed approved only if the determination deadline is missed.

A taxpayer receiving large data center sales-tax benefits must comply with specified direct-payment-permit and data-disclosure requirements. Until the required employment and investment levels are met, the taxpayer must pay and remit applicable sales and use taxes.

Personal-property tax exemptions for a large data center require annual claims filed by May 1 for each project and county, with supporting schedules listing the property. The exemption depends on the Tax Commissioner's eligibility determination and certification by August 1.

The Tax Commissioner may not grant Nebraska Advantage incentives to a foreign adversarial company.

Newly hired Nebraska employees must have their work eligibility electronically verified before incentives may be approved or granted. Hours and compensation of employees found ineligible to work in Nebraska are excluded from incentive calculations.

Data-center research, development, and maintenance activities qualify as a qualified business for tier 2, tier 3, tier 4, or tier 5 projects.

A tier 2 large data center project may qualify by investing at least $200 million in qualified data-center property and hiring at least 30 new employees. New applications under tier 2 were limited to complete applications filed by December 31, 2020.

After meeting the required employment and investment levels, a tier 2 large data center project receives an exemption from applicable state and local sales and use taxes on qualifying project purchases and rentals during each qualifying entitlement-period year.

Before a tier 2 large data center project meets its required levels, the taxpayer may receive a direct payment permit and must pay applicable sales and use taxes; after meeting the requirements, the taxpayer may receive the specified refunds or exemptions. The taxpayer must comply with statutory data-disclosure requirements.

A tier 2 large data center project receives a personal-property tax exemption for qualifying property placed in service after the application date, beginning on an applicable January 1 and continuing through the ninth December 31 after the year the first exemption claim is approved.

For a tier 2 large data center project, the personal-property exemption can cover all personal property located at the project, subject to the application, eligibility, and annual claim requirements.

Once a tier 2 large data center project meets its required employment and investment levels, its earned credits may be used to obtain state payments equal to real-property taxes paid on qualifying project real property acquired after the application date. The property taxes must be paid to the county first.

A tier 5 project sequential to a tier 2 large data center project may receive sales and use tax exemptions on qualifying purchases during its entitlement period and personal-property tax exemptions after the tier 2 project's sales-tax entitlement period expires, subject to the tier 5 requirements and statutory timing rules.

For a tier 5 project sequential to a tier 2 large data center project, the base year for measuring employment and investment is the last year of the tier 2 project's sales-tax entitlement period, and the investment deadline is generally four years after that entitlement period expires.

A tier 2 large data center project may receive a nine-year personal-property tax exemption for qualifying property placed in service after the tier 2 entitlement period, with the exemption beginning on an applicable January 1 after placement in service and continuing through the ninth December 31 after the first approved exemption claim.

A taxpayer that fails to meet or maintain the required employment or investment levels may lose benefits and face recapture, but recapture is not required when the failure was caused by an act of God or national emergency.