Tax incentive report hearing set for Thursday
Department of Revenue officials will present at a joint hearing of the Legislature’s Appropriations and Revenue committees this afternoon to discuss a report on the state’s business incentive programs.
The report, which was released in July, shows businesses claimed $156.5 million in tax credits and refunds in 2018 under Nebraska Advantage.
Nebraska Advantage generated about $2.6 billion in new qualifying investment and about 2,500 new full-time equivalent jobs in 2018 with an estimated average wage of $46,874, the report showed. However, the report also estimates that by 2028, which is as far out as the report projects, the cumulative revenue loss from the program, even after accounting for economic growth created by the incentives, will be $1.5 billion.
The report also showed that businesses claimed $46.5 million in tax credits and refunds under LB 775 in 2018 but that no new jobs were created as a result of these incentives. Companies will continue to receive tax credits and refunds under LB 775, which was enacted in 1987, until 2025. The report also projects that the cumulative revenue losses created by the program when factoring in economic growth will be more than $2 billion by 2025.
The Tax Incentive Report hearing starts at 1:30 p.m. in the State Capitol, Room 1507 and will be streamed online by NET Nebraska. OpenSky will provide updates from the hearing on our Twitter page.
