In May, Governor Jim Pillen signed LB754 into law which created a Pass-Through Entity Tax (PTET) for the state of Nebraska, for tax years 2023 and beyond, and retroactive for 2018-2022. This new law allows a pass-through entity (S-Corporation or Partnership) to pay the state income tax liability on behalf of its shareholders or partners and deduct those payments in full at the entity level.

As of this summer, 36 states have passed PTET legislation with four others pending legislation. Nebraska’s legislation directed the state department of revenue to develop forms and the necessary rules and instructions for the PTET. Nebraska taxpayers will have until December 31, 2025, to claim retroactive credits for 2018-2022.

The SP Group team ( has been proactively identifying their business clients that could benefit from this new law and assisting them with year-end planning related to this tax change. For many S-Corporation shareholders and partnership partners, these changes could result in tax savings.

If you have any questions regarding the Pass-Through Entity Tax (PTET), please contact your trusted advisor to see if PTET is relevant to your tax situation and how to take advantage of it.

SP Group, P.C. is a growing entrepreneurial accounting firm that serves growth-oriented companies and talented individuals in the Midwest. They value the relationships they have developed with their clients over the years. For more information, follow SP Group on Facebook (@SP Group, P.C.) and Twitter (@SPGroupPC) ), call them at (402) 420-7758 or visit