Bill would identify goals for tax incentive programs

Senators advanced a bill from general file March 13 that would add basic goal language to certain Nebraska tax incentive programs.

Syracuse Sen. Dan Watermeier, vice chairperson of the Legislative Performance Audit Committee, said the bill would add language to the state’s tax incentive programs indicating legislative intent regarding the type of jobs and industries that the programs are meant to encourage.

A report issued by the committee in 2013 indicated an absence of clear, measurable goals for each program, Watermeier said, which made it difficult to asses whether the programs are accomplishing what the Legislature intends them to do.

“It’s easy to audit something … but the hard work really lies ahead of us in the analysis,” he said.

LB836, introduced by the committee, would specify that the goal of the Nebraska Advantage Rural Development Act is to make tax structure revisions that encourage businesses to locate in rural Nebraska in order to decrease unemployment, create new jobs and increase investment.

The bill also would specify that it is Nebraska state policy to encourage modernization of livestock facilities, increase research and development and create quality jobs – specifically those related to research and development, manufacturing and large data centers.

LB836 also would add language to the Angel Investment Tax Credit Act stating that it is state policy to encourage entrepreneurship and increase investment in high technology industries in underserved areas of Nebraska.

Kearney Sen. Galen Hadley supported the bill, saying concerns are raised every year regarding the state’s tax incentive programs. The Legislature needs a means of answering those questions, he said.

“We have been putting millions and millions of dollars into a program that we have no way to evaluate,” Hadley said.

The bill advanced to select file on a 32-0 vote.