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May 13-16, 2019 UNICAMERAL UPDATE News published daily at Update.Legislature.ne.gov Vol. 42, Issue 19 / May 13 - 16, 2019 New business tax incentive program debated awmakers debated Under the new pro- a bill May 15 that gram, businesses would ap- L would create a new ply to the state Department business tax incentive of Economic Development program to replace the and enter into an agree- Nebraska Advantage Act. ment with the department The application period for if they meet the program’s that program is set to end requirements. next year. Qualifying businesses Sen. Mark Kolterman of would receive a varying Seward, sponsor of LB720, combination of incen- said the new program, tives—wage credits, income called the ImagiNE Ne- tax credits, sales and use tax braska Act, would be sim- refunds and exemptions, pler and more transparent personal property tax ex- than the Nebraska Advan- emptions or real property Sen. Mark Kolterman said businesses would have to maintain required tage Act, focus on high- levels of employment and investment in order to receive incentives under tax refunds—based on their wage jobs and improve the the new program. level of capital investment state’s ability to attract new business climate that helps grow and strengthen and the number of employees they investment. Nebraska’s economy with new jobs hire at a minimum qualifying wage. “The overall tax burden in Ne- and new investment.” The incentives would be limited to braska is too high for citizens, and the A pending Revenue Committee certain business activities, including need to grow our state has never been amendment, which includes provi- manufacturing; certain testing labo- more important,” he said. “In order sions that Kolterman said are meant ratories; rail and truck transportation; to find resources to provide this tax to address concerns about the original relief, we need a competitive business proposal, would replace the bill. (continued page 2) State budget package clears second round awmakers gave second-round approval May 15 to the nical changes to the bill and would add $4 million in mainline budget bill following a successful cloture general funds to the Nebraska secretary of state’s office to L vote. Seven additional bills included in the state’s replace Americans with Disabilities Act compliant voting $9.3 billion budget package advanced to the final round equipment. of consideration May 14. The amendment also would incorporate provisions of LB294, introduced by Speaker Jim Bolz’s LB181, which she said were inadvertently left out Scheer of Norfolk at the request of of the committee amendment adopted during general file the governor, is the mainline budget debate. bill and would fund state government The provisions would use $87,500 from the Nursing for the next two fiscal years. Select Facility Penalty Cash Fund to pay for a study to examine file debate focused on an amendment demographic trends, project current and future service brought by Lincoln Sen. Kate Bolz, vice Sen. Jim Scheer needs and provide recommendations for continued state- chairperson of the Appropriations Committee. The Bolz amendment would make a number of tech- (continued page 3) INSIDE: Tax credits for private school scholarship donations stall • Legalization of medical marijuana stalls May 13 - 16, 2019 New business tax incentive program debated (continued from front page) insurance carriers; wired and wireless an amendment that would include potential loss of tax incentives could telecommunications services; telemar- provisions of her deter companies from locating here. keting bureaus; data processing and LB527, which “If there’s anything that businesses hosting services; computer facilities would create a pro- want, it is certainty,” Williams said. management services; and warehous- gram to provide Omaha Sen. John McCollister also ing and storage. job training grants supported LB720, saying Nebraska is Agriculture, mining, construction, to employers. Bolz engaged in an “incentive arms race” utilities and public administration said any discus- with other states. He said the propos- would not qualify for incentives. sion of business Sen. Kate Bolz al’s projected cost due to lost revenue Under the amendment, Kolterman tax incentives should include workforce does not account for the economic said, businesses would be required to development because a lack of skilled benefits of new jobs. offer health insurance to each new workers is holding back the state’s McCollister said a mechanism he employee. economic growth. proposed to help control the pro- The amendment also includes pro- Bolz also introduced an amend- gram’s cost is included in the com- visions of LB605, ment that she said would cap the pro- mittee amendment. It would require introduced by posed incentives to avoid the volatile the speaker of the Legislature, the Omaha Sen. Brett jumps in lost revenue caused by the chairpersons of the Appropriations, Lindstrom, which state’s current tax incentive programs. Revenue and Legislative Performance would create a tax “I agree that we need a tax incentive Audit committees and the state tax credit for compa- program,” she said. “But I think—just commissioner to meet each fall to nies that produce like any other aspect of our budget— review the most recently available data sustainable mate- Sen. Brett Lindstrom we should establish a priority and a on the program. rials and renewable chemicals using parameter for what that investment Sen. Sue Crawford of Bellevue also agricultural products. looks like.” supported the proposal. The com- Kolterman said the ImagiNE Ne- Sen. Matt Williams of Gothenburg mittee amendment would allow busi- braska Act would reduce state revenue supported the committee amend- nesses to use incentives they earn to by an average of approximately $106 ment. He said the Legislature should repay job training loans, she said, and million per year over 10 years. not wait until next year to replace the Lincoln Sen. Kate Bolz introduced Nebraska Advantage Act because the (continued next page) UNICAMERAL UPDATE The Unicameral Update is a free, weekly newsletter published during the legislative session. It is produced by the Clerk of the Legislature’s Office through the Unicameral Information Office. For print subscriptions, call 402-471-2788 or email [email protected]. Visit us online at Update.Legislature.ne.gov, twitter.com/UnicamUpdate and facebook.com/UnicameralUpdate. Clerk of the Legislature: Patrick J. O’Donnell Editor: Kate Heltzel; Writers: Kyle Harpster, Ami Johnson, Mike Malloy; Photographer: Bess Ghormley Printed copies of bills, resolutions and the Legislative Journal are available at the State Capitol room 1023, or by calling 402-471-2709 or 800-742-7456. Status of bills and resolutions can be requested at that number or can be found on NebraskaLegislature.gov. Live video of hearings and floor debate can be viewed on NET2 and at NetNebraska.org/capitol. Senators may be contacted by mail at this address: Senator Name, District #, State Capitol, P.O. Box 94604, Lincoln, NE 68509-4604 Assistance provided by the Clerk of the Legislature’s Office, the Legislative Technology Center, committee clerks, legal counsels, journal clerks, pages, transcribers, mail room and bill room staff and the State Print Shop. The Unicameral Update is available as an audio recording from the Nebraska Library Commission’s Talking Book and Braille Service. Call (800) 742-7691 for more information. THE NEBRASKA LEGISLATURE’S OFFICIAL NEWS SOURCE SINCE 1977 PAGE 2 • UNICAMERAL UPDATE • 106TH LEGISLATURE May 13 - 16, 2019 it would make tax incentives’ impact and significant” property tax relief forgone approximately $1.5 billion in on sales and use tax collections clearer this session. revenue under existing tax incentive to cities and counties than it is under “Without property tax relief, busi- programs without seeing a commen- the Nebraska Advantage Act. ness incentives need to stall,” he said. surate increase in economic growth. Crawford said capping incentives as “Nebraskans need property tax relief a Friesen supported the Bolz amend- Bolz proposed would be difficult be- whole lot worse than businesses need ment, saying the state should focus on cause the amount a business receives this incentive package.” job training rather than job creation. depends on its performance and is not Sen. Mike Groene of North Platte “Our unemployment is the lowest set in advance. However, the required questioned why the Legislature would it’s been in years,” he said. “For some annual review of program data would approve a new business tax incen- reason, we want to incentivize the make it easier for the Legislature to tive program before addressing high creation of new jobs.” adjust the program’s cost, something property taxes. He said the Nebraska After three hours of debate, the senators have been reluctant to do Advantage Act mainly has helped Legislature recessed before voting on with the Nebraska Advantage Act, Lincoln and Omaha, not the state’s the committee amendment, the Bolz she said. rural areas, where low commodity amendment or LB720. Per a practice “We’re going to have to have a dif- prices, population loss and property implemented by Speaker Jim Scheer, ferent culture with [LB]720—that it’s taxes are the main concerns. the sponsor of a bill that is facing a acceptable and appropriate to change “Quit ignoring the real problem in potential filibuster must demonstrate it year to year,” Crawford said. this state,” Groene said. “It’s property sufficient support for a cloture motion Albion Sen. Tom Briese said he taxes.” before the measure will be scheduled would not support the proposal unless Sen. Curt Friesen of Henderson for additional debate. g the Legislature also passes “substantial opposed the bill. He said the state has State budget package clears second round (continued from front page) wide access to long-term care services, including nursing additional 33 were placed under receivership in 2018.
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