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Web Companies Now Qualify for Incentives Under Nebraska Economic Development Program

LB 895 aids recruitment of high-paying jobs to Nebraska.

Nebraska Gov. Dave Heineman yesterday signed LB 895, the Nebraska Super Advantage, into law. The bill was created to help communities take the next step in advancing economic development and business recruitment efforts throughout the state.

"With today's bill signing, we are taking a quantum leap forward in our efforts to create quality jobs in Nebraska," Heineman said. "By creating a new tier of incentives that encourage companies to bring higher-paying jobs here to our state, 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 Nebraska Super Advantage is focused on attracting companies ready to create higher-paying jobs in the state.

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.

State Tax Commissioner Doug Ewald said, "This proposal provides attractive incentives to help companies do business in our state and gives them greater flexibility to use the incentives contained in the original Nebraska Advantage legislation."

LB 895 includes an emergency clause and takes effect immediately. It was introduced on the governor's behalf by Sen. Ray Janssen of Nickerson, chairman of the Legislature's Revenue Committee, and prioritized by Sen. Tim Gay of Papillion.

Janssen said, "I believe that this legislation provides Nebraska with an opportunity to attract good paying careers that would be a tremendous boost to our economy and the future of our state."

Gay said, "Today we are continuing our progress toward making Nebraska an attractive destination for new companies and current Nebraska employers who will make a long-term commitment to our economy. LB 895 will lead to the opportunities Nebraska needs to keep our best and brightest here."

Passed during the 2005 legislative session, the goal of the Nebraska Advantage was to create a business climate making Nebraska the preferred location for starting or growing a business. Since taking effect in 2006, 148 companies have announced plans to locate or expand in Nebraska. These businesses are expected to invest more than $4.8 billion in the state economy and create more than 13,200 new jobs in the years ahead.

The long-term goals of the package include promoting the growth of existing companies through job retention, expansion and new capital investments, increasing the number of successful new business ventures in the state and fostering the development of new products and ideas.

"This legislation is about the future," said Heineman, "creating higher-paying jobs for the next generation of Nebraskans. By extending the Nebraska Advantage, we are increasing our appeal to businesses interested in the well-educated and highly-trained workforce Nebraska has to offer, while also helping our state compete for twenty-first century jobs."