On August 17, 2020, Governor Ricketts signed into law Legislative Bill 1107 (“LB1107”), which includes a series of initiatives spanning tax relief, renewable energy, higher education, and a tax-break program for businesses that create new jobs. The six (6) main components of LB1107 are highlighted below.
ImagiNE Nebraska Act
- This bill replaces the Nebraska Advantage Act effective January 1, 2021 and provides credits, refunds, and exemptions to Nebraska businesses. According to LB1107, $25 million in credits and refunds are available in 2021 and 2022, increasing to $100 million in 2023 and 2024.
Key Employer and Jobs Retention Act
- This bill provides business incentives to companies with at least one thousand employees that retain at least 90 percent of their base-year employment in the state of Nebraska. Among the incentives are up to $40 million in state tax credits paid out over 10 years.
Renewable Chemical Production Tax Credit Act
- LB1107 states that producers of eligible renewable chemicals can claim a tax credit of 7.5 cents per pound, up to $1.5 million per year, starting in 2022.
Customized Job Training Act
- Under LB1107, employers may apply to the Department of Economic Development for funds in the form of grants that reimburse employers for certain expenses made toward training employees.
Nebraska Transformational Projects Act
- LB1107 provides funding for the Nebraska Transformational Projects Act, also known as the NExT Act, including a pledge to spend $300 million in state funding if the proposed NExT Project at the University of Nebraska Medical Center in Omaha is approved.
Nebraska Property Tax Incentive Act
- LB1107 sets a minimum allocation for Nebraska’s existing Property Tax Credit Cash Fund and establishes a new refundable income tax credit for property taxes paid, such that even property owners who owe no income taxes could receive a check from the state.
Stay tuned for future Client Updates that explain and analyze these six (6) components of LB1107 in greater detail. Click here to read the complete text of this bill.
A printable version of this information can be found by clicking HERE.
Mark L. Brasee
Neil P. Hassler
John J. Waters
This article has been prepared for general information purposes and (1) does not create or constitute an attorney-client relationship, (2) is not intended as a solicitation, (3) is not intended to convey or constitute legal advice, and (4) is not a substitute for obtaining legal advice from a qualified attorney. Always seek professional counsel prior to taking action.