88

According to analysis from the Institute on Taxation and Economic Policy (ITEP), 88 of the nation’s largest and most profitable corporations paid zero federal corporate income taxes for 2025. Collectively, the organizations across a variety of industries made more than $105 billion in taxable income last year. Had they paid the statutory federal income tax rate of 21%, an additional $22.1 billion would have been added to federal coffers. Instead, these 88 companies received $4.7 billion in tax refunds. 

Much of the tax avoidance was made possible by the One Big Beautiful Bill Act (OBBBA), particularly a provision called accelerated depreciation. This allows companies to write off the cost of equipment or other capital immediately, rather than gradually as the item wears out. ITEP’s analysis found that the 88 companies collectively reported reducing their income taxes by $11.4 billion in 2025 through accelerated depreciation. Other provisions of OBBBA, such as a federal research & experimentation credit and an exemption for executive stock option-related expenses, were popular among the 88 companies profiled as well. 

These tax avoidance strategies impact state budgets as well. According to ITEP, the corporations collectively reported an effective state income tax rate of just 1.4%. The nationwide weighted-average state corporate tax rate is closer to 6 percent, which implies that these corporations got an approximately 75% discount on their state income taxes. The Nebraska Department of Revenue estimates that the provision will cost Nebraska $95 million over the next 4 years. Senator George Dungan introduced LB 853, which would have decoupled Nebraska from a provision allowing accelerated depreciation for certain non-residential structures amid significant budget stress. The bill did not advance from the Revenue Committee. 

3.3%

The consumer price index (CPI), a key marker of inflation, rose by a seasonally-adjusted 0.9% in March, putting the annual inflation rate at 3.3%, according to the Bureau of Labor Statistics (BLS). When food and energy prices are removed, core prices had a more modest increase over last month at just 0.2% and 2.6% year-over-year. The surge in the CPI meant that real earnings for workers decreased 0.6% for the month.  

Soaring fuel prices driven by the Iran conflict drove much of the inflation, as gasoline increased 21.2%, accounting for nearly three quarters of the price increase, according to BLS. Average cost per gallon increased to $4.12, as of Monday, according to the U.S. Energy Information Administration’s latest weekly data. This is up from about $2.94 before the war started. Many economic analysts project ongoing stress on fuel prices due to conflict’s impact on the Strait of Hormuz. 

$72 million

The Nebraska Department of Revenue released March tax receipts this week, which missed projections by the Nebraska Economic Forecasting Advisory Board by nearly 15% across all tax types. The Legislature passed mid-biennium budget adjustments this session that left the state with a surplus of $6.2 million, but the March report implies the budget is back to a shortfall of about $72 million.  

Several state leaders indicated that individual tax returns are being processed faster this year, according to reporting by the Nebraska Examiner. While a higher quantity of returns have been processed, the amount of tax refunds issued is lower than last year. Individual income tax receipts came in nearly 57% below forecasts for March, a difference of $121 million. 

With just one day left in the Legislative session, the next opportunity to adjust this biennial budget may not come until the Legislature reconvenes in January, 2027. During that 90-day session, the body will be obligated to pass a balanced budget. Additional tax receipts and another meeting of the Forecasting Board in October may expand or contract the deficit. 

CORRECTION: Last week’s OpenSkyLIGHTS indicated that there were no former senators running to return to the Legislature after term limits. That is incorrect. Senator Patty Pansing Brooks is running in Legislative District 28 after previously serving two terms. We regret this error.