Ongoing tax incentive evaluations approved

Senators passed a bill May 21 that requires regular evaluation of the state’s tax incentive programs.

LB538, introduced by the Performance Audit Committee, creates an ongoing evaluation process for all current and future tax incentive programs enacted for the purpose of recruiting or retaining businesses in Nebraska.

The Legislature’s Performance Audit Office will develop and publish a schedule for conducting the evaluations, ensuring that each program is reviewed at least once every three years.

Each evaluation of a tax incentive program will analyze program-specific goals and economic and fiscal impacts of the program and recommend changes to evaluation procedures that will allow for easier evaluation in the future.

Eight current programs also will be evaluated under LB538, including the:
• Angel Investment Tax Credit Act;
• Beginning Farmer Tax Credit Act;
• Nebraska Advantage Act;
• Nebraska Advantage Microenterprise Tax Credit Act;
• Nebraska Advantage Research and Development Act;
• Nebraska Advantage Rural Development Act;
• Nebraska Job Creation and Mainstreet Revitalization Act; and
• New Markets Job Growth Investment Act.

The bill establishes a sunset date of Dec. 31, 2019, for certain incentives under the Nebraska Advantage Act, Nebraska Advantage Rural Development Act and the New Markets Job Growth Investment Act.

The bill passed on a 46-0 vote.