On April 17, Governor Dave Heineman signed LB 895, the Nebraska Super Advantage, into law. The bill was created to help communities throughout the state recruit higher paying jobs.
"With today's bill signing, we are taking a quantum leap forward in our efforts to create quality jobs in Nebraska," Governor Heineman said. "By creating a new tier of incentives that encourage companies to bring higher-paying jobs here.we are increasing our competitiveness and increasing opportunities for Nebraskans, especially our young people."
LB 895 modifies the state's existing set of business incentives by adding a new layer of incentives to the five tiers that comprise the current Nebraska Advantage. The new tier provides tax incentives to businesses creating new jobs paying at least 150 percent of the state average wage or 200 percent of the average wage in the county where the business is located, whichever is greatest. The state average wage is $33,800, so a company would have to create jobs paying at least $50,700 to meet the 150 percent threshold.
To qualify, companies will need to create 75 new jobs and make a $10 million capital investment, or create at least 50 new jobs and make a $100 million investment in capital. Qualifying businesses will be eligible to receive a 15 percent investment tax credit and a 10 percent wage credit, in addition to sales tax refunds on purchases associated with expansion and a 10-year exemption on personal property. The program will be administered by the Nebraska Department of Revenue.
LB 895 also updates parts of the original Nebraska Advantage legislation by allowing Internet web portal companies to qualify for incentives. It also expands the Nebraska Rural Advantage to include companies located in any village or small town, regardless of county size and areas of extreme poverty in the Omaha area, and invests an additional $1 million in Rural Advantage funding, bringing the total available beginning in FY 2009-10 to $4 million. LB 895 includes an emergency clause and takes effect immediately.