New Statute May Bar Non Nebraska Entities from Acquiring Most Nebraska Land

Broad language in the Foreign-Owned Real Estate National Security Act may jeopardize American landowners that formed an entity outside of Nebraska.

A new statute limits foreign acquisition of Nebraska land.  The Foreign-Owned Real Estate National Security Act (the “Act”) prohibits 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).

The Nebraska Legislature adopted the Act in 2024.  The Act’s purpose was to protect Nebraska’s land and military installations from “foreign persons,” “foreign adversaries” and “foreign governments.”[1]

However, the statutory terms “foreign corporation” and “nonresident alien” may extend the Act’s prohibition to any non‑Nebraska entity.  That includes entities formed within the United States.  Nebraska farmers, for instance, commonly use Delaware limited liability companies to hold their cropland.  

The Act does not define “foreign corporation.”  Other statutes define it to include American entities formed outside of Nebraska.  See e.g. § 21-214(21).  “Nonresident alien” means any “person,” potentially including an American entity, who is not a United States citizen, national or lawful permanent resident.  § 76‑3702(1).

The Act has exceptions for incorporated areas, industrial and manufacturing operations and hydrocarbon development.  See e.g. §§ 76-3704 – 76-3710.  Two current bills would clarify these exceptions.  See Legislative Bills 9 and 476 (2025).  But without further legislative action, the Act potentially prohibits non-Nebraska entities from acquiring most Nebraska land.

Attorneys at Baird Holm specialize in various subject matter areas including land use, corporate structuring and government relations.  Please contact us with any questions.