Open Sky Policy Institute: ‘Circuit breaker’ in LB 186 provides targeted property tax reductions
ITEP Work in ActionProperty tax “circuit breakers” like the one proposed in LB 186 are a way to provide targeted tax reductions to those whose property taxes are high in relation to their incomes.
They are called “circuit breakers” because the tax credits are triggered once property taxes reach a certain percentage of a person’s income, similar to how electrical circuit breakers are triggered when electricity surges. The tax reduction comes in the form of an income tax credit that helps offset the cost of property taxes.