Seventeen Legislative Bills Affecting Development, Energy, and Other Real Estate Matters Passed During the 2025 Nebraska Legislative Session

The First Regular Session of the 109th Nebraska Legislature adjourned sine die on June 9, 2025.  We previously provided updates during bill introduction and throughout the legislative session on various bills of interest.  You can access these prior articles by clicking here.

Throughout this legislative session, we identified and analyzed seventy-two (72) legislative bills of interest.  The Nebraska Legislature passed and Governor Jim Pillen signed twenty-one (21) of those bills into law. 

We analyze these passed legislative bills of interest immediately below.  In the chart following our analysis, we provide the final status of each bill of interest from this Session.

BILLS OF INTEREST THAT BECAME LAW

LB 7 (DeKay) – Passed on April 3, 2025 – Foreign Ownership of Real Estate

LB 7, as amended by AM 77 (Agriculture Committee), AM 310 (DeKay), and ER 22 (Guereca) helps clarify the Foreign Owned Real Estate National Security Act.  In 2024, the Legislature prohibited any “foreign corporation” or “nonresident alien” from owning Nebraska real estate or leasing it for more than five years.  Neb. Rev. Stat. § 76-3703(1)(a).  That language was to protect Nebraska’s land and military installations from “foreign persons,” “foreign adversaries” and “foreign governments.”  That broad language, however, jeopardized American landowners that formed an entity outside of Nebraska.

This bill, as amended, defines “foreign government” as any government other than the United States government or the government of any state, political subdivision, tribe or territory of the United States.  The bill also provides that foreign and restricted entities would need a determination from the Committee on Foreign Investment in the United States showing they pose no national security concerns in a land sale.  Finally, the bill compels foreign and restricted entities to secure a national security agreement with the Committee on Foreign Investment in the United States when transacting a land sale.

The Legislature passed LB 7, as amended, on April 3, 2025.  Governor Pillen signed it into law on April 7, 2025.

LB 20 (Cavanaugh) – Passed on February 21, 2025 – Local Electric Service and On‑Site Renewable Generation

LB 20, as amended by AM 69 (Cavanaugh), bars local electrical distribution facilities from refusing to provide electric service to local customers that generate their own electricity using methane, wind, solar, biomass, hydropower or geothermal resources for agricultural or horticultural purposes.  The bill is limited to facilities with a generating capacity of one-hundred (100) kilowatts or fewer.  Further, the bill requires facility owners to comply with the standard requirements local distribution utilities must currently follow.

The Legislature passed LB 20, as amended, on February 21, 2025.  Governor Pillen signed it into law on February 25, 2025.

LB 43 (DeKay) – Passed on February 21, 2025 – Notice and Certification Requirements for Facilities Near Military Installations

LB 43, as amended by AM 43 (Natural Resources Committee), ER 1 (Guereca), and AM 215 (DeKay), changes provisions and definitions relating to notice and certification requirements for electric generation facilities, transmission lines, and privately developed renewable energy generation facilities near military installations.  It requires entities constructing, expanding, altering or repairing generation facilities within a ten-mile radius of military facilities to provide notice of the work and certify they are not using equipment manufactured by a foreign government or adversary.

The Legislature passed LB 43, as amended, on February 21, 2025.  Governor Pillen officially signed it into law on February 25, 2025.  Because it contained an emergency clause, it took effect immediately on February 25.

LB 50 (DeKay) – Passed on May 30, 2025 – Distribution of the Nameplate Capacity Tax

LB 50 alters the distribution of taxes collected from renewable energy generation facilities under the Nameplate Capacity Tax.  The bill directs county treasurers to now distribute the first five percent (5%) of the generated Nameplate Capacity Tax revenue to the community college in the area in which the renewable energy generation facility is located.  The remaining revenue will go to local taxing entities as previously established.

The Legislature passed LB 50 on May 30, 2025.  Governor Pillen signed it into law on June 4, 2025.

LB 90 (Clouse) – Passed on May 9, 2025 – Changes to Omaha Improvement Districts

LB 90 empowers cities of the first class to now create improvement districts for sidewalks, public ways, and other public spaces, in addition to streets, avenues, and alleys.  Municipalities must still fund improvements in these districts through a levy of special assessments on the properties that especially benefit from the improvements.  Owners of properties abutting the district no longer need to have been an owner at the time the municipality published the ordinance establishing the district to file a written objection to the creation of said district. 

The Legislature passed LB 90 May 9, 2025.  Governor Pillen signed it into law on May 13, 2025.

LB 91 (DeKay) – Passed on February 21, 2025 – Conveyance of Electric Distribution Systems to Cities and Villages

LB 91 makes small changes to Nebraska Revised Statutes section 70-650.01.  With the changes, any public power district or public power and irrigation district that requires an electric distribution system within any city or village must transfer its interest in the system, with cost, to the city or village.  However, the bill does not include express language requiring districts to charge cities or villages for acquiring electric distribution systems.

The Legislature passed LB 90 on February 21, 2025.  Governor Pillen signed it into law on February 26, 2025.

LB 105 (Hughes) – Passed on April 3, 2025 – Voting and Election Procedures for Public Power Districts

LB 105 modifies the election procedures for public power districts.  It allows the operating area boundary lines to coincide with whole or divided voting precincts.  The bill allows greater flexibility in establishing subdivisions and boards of directors when the operating area contains multiple counties.  Finally, the bill allows entities to now avoid Nebraska Secretary of State approval when proposing boundary line changes.

The Legislature passed LB 105 on April 3, 2025.  Governor Pillen signed it into law on April 7, 2025.

LB 240 (Jacobson) – Passed on March 6, 2025 – Notice Provisions Under the Community Development Law

LB 240 makes small adjustments to notice provisions under the Community Development Law.  It requires communities to submit notice of plans to divide ad valorem taxes under a redevelopment plan to the respective county assessor by July 1st of the affected year, rather than August 1st.  Failure to provide proper notice to the county assessor will result in the ad valorem taxes remaining undivided. 

The Legislature passed LB 240 on March 6, 2025.  Governor Pill signed it into law on March 11, 2025.  Because it contained an emergency clause, it took effect immediately on March 11.

LB 266 (Dover) – Passed April 3, 2025 – Prohibiting Ordinances That Create Rent Controls on Private Property

LB 266 prohibits any local government from enacting or enforcing an ordinance that imposes rent controls on private property.  This prohibition does not apply to an ordinance that aims to increase the supply of affordable housing, nor does it prohibit an ordinance that would provide a program that restricts rent and rent increases that a private property owner could voluntarily participate in.

The Legislature passed LB 266 on April 3, 2025.  Governor Pillen signed it into law on April 7, 2025.

LB 288 (Urban Affairs Committee) – Passed on May 28, 2025 – Adjustments to the Property Assessed Clean Energy Act, the Nebraska Affordable Housing Act, and the Middle Income Workforce Housing Investment Act

LB 288, as amended by AM 733 (Urban Affairs), AM 1074 (McKinney), AM 968 (Dover), ER 55 (Guereca), and AM 1181 (Kauth), redefines terms and change provisions related to grant funding considerations under the Middle Income Workforce Housing Investment Act.  It also adds new legislative findings regarding blighted areas, adding “lack of affordable housing” as a factor in assessing blight.  Further, it adds new ways of assessing blighted areas and providing for more affordable housing in those areas.  Finally, it adds “grid resiliency” as a legislative renewable energy goal to the Property Assessed Clean Energy Act, and provides several key definitions to recognize grid resiliency as a greater goal.

The Legislature passed LB 288, as amended, on May 28, 2025.  Governor Pillen signed it into law on May 30, 2025.

LB 289 (Urban Affairs Committee) – Passed on March 13, 2025 – Election Procedures for Cities, Villages, and Boards of Adjustment

LB 289, as amended by ER 12 (Guereca), and AM 309 (McKinney), provides rules for how many trustees must sit on a newly incorporated village board, including how the village will elect those trustees.  Under the election rules, the two highest vote receivers will serve four (4) year terms, while the third highest vote receiver will serve a two (2) year term.  The village may also determine whether the new board should include three (3) or five (5) members.  The bill also removes percentage cut offs from qualifying business definitions under the Local Option Municipal Economic Development Act.

The Legislature passed LB 289 on March 13, 2025.  Governor Pillen signed it into law on March 17, 2025.

LB 290 (Urban Affairs Committee) – Passed on May 28, 2025 – Grant Funding for Business Parks

LB 290 changes provisions related to grant funding for a business park under the Economic Recovery Act.  The bill limits grant funds to ninety-million dollars ($90,000,000) for a nonprofit economic development organization constructing a business park within the boundaries of an inland port district within Omaha.  The bill also prohibits entities from using grant funds in the downtown or northern downtown areas of Omaha.

The Legislature passed LB 290 on May 28, 2025.  Governor Pillen signed it into law on May 30, 2025.

LB 317 (Brandt) – Passed on May 1, 2025 – Merger of the Department of Natural Resources and the Department of Environment and Energy

LB 317, as amended by ER 36 (Guereca), AM 1084, AM 1124, FA 116, and most crucially, AM 711, first merges the Department of Natural Resources into the Department of Environment and Energy, creating the Department of Water, Energy, and Environment.  As part of the merge, the Director of Environment and Energy will now be named and act as the Director of Water, Energy, Environment.  The Director of Natural Resources will now be named and act as the Chief Water Officer.  Those positions will retain many or all of their previous duties.

The bill also resolves several administrative issues as they pertain to the departmental transition.  It resolves issues such as salaries and other financial concerns, transfer of property, changing of statutory references regarding both the department names and director positions, and other such administrative issues.

The Legislature passed LB 317 on May 1, 2025.  Governor Pillen signed it into law on May 6, 2025.  Because the bill contained an emergency clause, it took effect immediately on May 6.

LB 355 (Andersen) – Passed on April 10, 2025 – Census Data Provisions Regarding Tax and Economic Development Programs

LB 355 makes small adjustments to provisions regarding census data used for tax and economic development programs.  The bill provides for more accurate data for distributions by the Department of Economic Development by removing mentions of the federal decennial census to more narrowly focus on the American Community Survey 5-Year Estimate by the United States Bureau of the Census.

The Legislature passed LB 355 on April 10, 2025.  Governor Pillen signed it into law on April 14, 2025.

LB 373 (Hansen) – Passed on March 20, 2025 – Alterations to Section Lines and the Vacation or Abandonment of Public Roads

LB 373 changes provisions relating to section lines, and the vacation and abandonment of public roads.  The bill specifies that current section lines are declared, but not required to be, public roads in each county.  The bill allows county boards of supervisors to pass resolutions to open such public roads on section lines when needed and remove study requirements when recommending to the county highway superintendent that a road be vacated or abandoned.

The Legislature passed LB 373 on March 20, 2025.  Governor Pillen signed it into law on March 25, 2025.

LB 501 (Meyer) – Passed on April 3, 2025 – Assessment of Damaged Real Property

LB 501 adjusts the standards for assessing damaged real property for tax purposes.  Previously, property assessors could adjust the value of real property for tax purposes when the property was “destroyed.”  Now, assessors can adjust the value if the property is merely “damaged,” providing a lower standard for tax adjustments.  Before, events such as fires, earthquakes, floods and tornadoes could give rise to tax adjustments.  The bill added “other events causing significant property damage” to widen the base of applicable events that may give rise to tax adjustments.  Finally, county assessors must now submit a comprehensive report of all damaged properties to the county board of equalization for assessment purposes, strengthening the assessment process.

The Legislature passed LB 501 on April 3, 2025.  Governor Pillen signed it into law on April 7, 2025.

LB 521 (Sanders) – Passed on May 28, 2025 – Elections of Elective Officers and Alterations to the Open Meetings Act

LB 521, as amended by AM 1152 (Government, Military and Veterans Affairs Committee), ER 75 (Guereca), AM 1333 (Sanders), and FA 190 (Bosn), provides new standards for electing various elective office positions within Omaha.  The bill provides standards regarding city council members to the Mayor of Omaha.  It also provides forms and standards for nominating individuals to various elective office positions.

The bill also provides updates to the Nebraska Open Meetings Act.  Now, public bodies must request that a newspaper of general circulation post notice of a meeting on a statewide website, if available, if the newspaper is otherwise unable to properly publish notice.  Public bodies must also create written records of requests for notice publication.  Further, public bodies may now designate new, appropriate methods of notice to comply with the Open Meetings Act.  Finally, public notices must now contain an agenda of the subjects the public body plans to discuss at each meeting.  Public bodies may not amend these agendas later than twenty-four (24) hours before the start of the respective meeting, unless under emergency circumstances.

The Legislature passed LB 521, as amended, on May 28, 2025.  Governor Pillen signed it into law on May 30, 2025.  Because the bill contained an emergency clause, it took effect immediately on May 30.

LB 613 (Andersen) – Passed on May 30, 2025 – Disclosure of Tax Information to Nebraska Municipalities

LB 613 provides new standards for requesting and disseminating information pursuant to the Nebraska Revenue Act of 1967.  This includes the Tax Commissioner’s ability to request additional information pertaining to the collection of local option sales taxes and a person’s ability to disclose copies of returns and return information to other municipal employees for verification purposes.  Additionally, the bill allows a municipality to request a list from the Department of Revenue of businesses that filed an application to receive tax incentives under the Employment and Investment Growth Act, the Nebraska Advantage Act, the ImagiNE Nebraska Act, or the Urban Redevelopment Act. 

The Legislature passed LB 613 on May 30, 2025.  Governor Pillen signed it into law on June 4, 2025.

LB 614 (Andersen) – Passed on May 15, 2025 – Exemptions from Regulatory Authority Regarding Certain Farm Buildings

LB 614, as amended by ER 71 (Guereca), allows any city of the first class to exempt certain farm buildings from zoning and property use regulations and building, electrical, plumbing and other ordinances within said city’s extraterritorial zoning jurisdiction.  The bill also allows any city of the second class or village to do the same.

The Legislature passed LB 614, as amended, on May 15, 2025.  Governor Pillen signed it into law on May 21, 2025.

LB 696 (Raybould) – Passed on May 14, 2025 – Alter Provisions Related to the Professional Landscape Architects Act

LB 696, as amended by AM 499 (Government, Military and Veterans Affairs Committee), revises the Professional Landscape Architects Act by altering the application process for accreditation.  The bill allows the Canadian Society of Landscape Architects to accredit a landscape architecture degree, in addition to the Landscape Architectural Accreditation Board, for purposes of sitting for the Landscape Architect Registration Examination.  Further, it provides that examination materials shall not be public records subject to disclosure under the Act.

The Legislature passed LB 696, as amended, on May 14, 2025.  Governor Pillen signed it into law on May 15, 2025.

LB 707 (von Gillern) – Passed on June 2, 2025 – Altering the Sales Tax Rate and Provisions Related to Good Life Districts

LB 707, as amended by AM 1336 (Revenue Committee), ER 87 (Guereca), AM 1560 (von Gillern), AM 1573 (Bostar), FA 287 (von Gillern), AM 1581 (Quick), FA 286 (von Gillern), AM 1599 (Holdcroft), and AM 1642 (von Gillern), provides new standards for the establishment, funding, and operation of good life districts.  This includes provisions for utilizing tax funds, the creation and termination of programs, and the disbursement of funds to develop certain projects under these districts.  Further, starting October 1, 2025, the bill establishes the sales tax rate at five and one-half percent (5.5%).

The Legislature passed LB 707, as amended, on June 2, 2025.  Governor Pillen signed it into law on June 4, 2025.  Because it contained an emergency clause, it took effect immediately on June 4.

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Attorneys at Baird Holm LLP specialize in real estate development, government relations, renewable energy, and other general real estate matters.  If you have any questions or would like to discuss one or more of the legislative bills above, please do not hesitate to reach out.  Thank you.

Jack R. Schelhaas
Joel R.J. Myers, Summer Associate