Economic development disclosure amended, advanced

Businesses would be required to disclose additional information before applying for certain local economic development programs under a bill advanced from select file March 7.

The provisions of LB1059, introduced by Bellevue Sen. Sue Crawford, would apply to businesses seeking economic development incentives under the Local Municipal Economic Development Act or contracts using tax increment financing (TIF).

Crawford said the bill is designed to address the intersection between state incentives and local development incentives. She said state tax credits can include a refund of a municipality’s local option sales tax, which is not always evident to a municipality before awarding local incentives for the same project.

Before applying for special incentives, a business must certify:
• whether it has filed or intends to file an application to receive tax incentives under the Nebraska Advantage Act for the same project;
• whether such application includes or will include a refund of the municipality’s local option sales tax revenue;
• a good faith estimate of the total amount of tax incentives the business expects to receive under the Nebraska Advantage Act for any application; and
• whether such application has been approved.

A Crawford amendment, adopted 30-0, eliminated the good faith estimate requirement for a business applying for special incentives. She said businesses often apply for one tier of incentives but receive a different tier of incentives, making it difficult to provide the estimate in advance.

“It would be difficult for businesses to provide a good faith estimate that is both accurate and helpful to the political subdivision,” Crawford said.

The bill also includes provisions of two related bills.

LB860, originally introduced by Venango Sen. Dan Hughes, would authorize a municipality to use funds from a Local Municipal Economic Development plan for workforce housing. Currently funds from such plans may be used only for low- and moderate-income housing.

Originally introduced by Lincoln Sen. Matt Hansen, LB808 would allow a municipality to amend an existing Local Municipal Economic Development plan to add or remove a qualifying business if recommended by its citizen advisory review committee. The provisions would require a public hearing and a supermajority vote—two-thirds of members—of the municipality’s governing body.

Senators advanced the bill to final reading by voice vote.