Signed by Governor Pete Ricketts

Vote Smart's Synopsis:

Vote to pass a bill that amends business and property tax credits and incentives.

Highlights:

• Defines “Taxpayer” as any person subject to sales and use taxes under the Nebraska Revenue Act of 1967 and subject to withholding under section 77-2753 and any entity that is or would otherwise be a member of the same unitary group, if incorporated, that is subject to such sales and use taxes and such withholding (Sec. 22).

• Requires the taxpayer to file an application with the Director of Economic Development in order to utilize tax incentives in which the following must be provided (Sec. 27):

• The taxpayer applying for incentives;

• All locations sought to be within the agreement and the reason each such location constitutes or is expected to constitute a qualified location;

• The estimated, projected amount of new investment and the estimated, projected number of new employees;

• The required levels of employment and investment for the various incentives listed within section 31 of this act that will govern the agreement. The taxpayer may identify different levels of employment and investment until the first December 31 following the end of the ramp-up period on a form approved by the director. The identified levels of employment and investment will govern all years covered under the agreement;

• Whether the agreement is for a single qualified location, all qualified locations within a county, all qualified locations in more than one county, or all qualified locations within the state;

• Acknowledgment that the taxpayer understands the requirements for offering health coverage, and for reporting the value of such coverage, as specified in the ImagiNE Nebraska Act;

• Acknowledgment that the taxpayer does not violate any state or federal law against discrimination;

• Acknowledgment that the taxpayer understands the requirements for providing a sufficient package of benefits to its employees as specified in the ImagiNE Nebraska Act; and

• A nonrefundable application fee of $5,000 dollars.

• Requires the director to make his or her determination to approve or not approve an application within 90 days after the date of the application (Sec. 27-5).

• Prohibits interest from being allowable on any refunds paid because of benefits earned under the ImagiNE Nebraska Act (Sec. 35).

• Authorizes a taxpayer with an application under the ImagiNE Nebraska Act to apply for an infrastructure development loan by submitting an application to the Department of Economic Development which includes, but is not limited to (Sec. 43):

• The nature of the business and the type and number of jobs to be created or retained;

• The estimated wage levels of the jobs to be created or retained; and

• A brief description of the infrastructure need that the loan is intended to fill.

Full Bill Text