The Department of Revenue’s 2019 Tax Incentives Report was released Wednesday. Here are some initial observations from the report:

• Nebraska Advantage and LB 775 combined to reduce state revenue by  about $200 million in calendar year 2019, and the expense to taxpayers is projected to increase significantly in 2020, 2021 and 2022.
• In 2019, Nebraska Advantage’s average wage of $48,054 was lower than the statewide average wage of $50,388 across all industries in the state and was particularly glaring in the manufacturing sector where the average manufacturing wage in the program was $39,082 compared to the statewide average manufacturing wage of $55,900.
• LB 775 paid out over $44 million in benefits in 2019, even though the program technically sunset in 2005. This highlights how incentive programs can impact state revenues for decades after they stop accepting new applications.
• Nebraska Advantage has reduced state revenue by $914 million since its inception, not including local revenue losses from property tax abatements distributed through the program.
• The combined state revenue impact for both programs through 2029 is projected to be $5.6 billion.

“These are expensive programs and we should really be thinking about whether these are a good use of taxpayer dollars, especially considering that we are subsidizing below-average wage jobs,” said Renee Fry, executive director of OpenSky Policy Institute. “There needs to be serious discussion about whether LB 720, the proposed new incentive program, is the best use of taxpayer dollars to move our state forward at this uncertain time.”