Budget proposal could include tax incentive data

The Appropriations Committee heard testimony Feb. 25 on a bill intended to increase transparency regarding tax incentive programs in Nebraska.

LB629, introduced by Lincoln Sen. Danielle Conrad, would require information regarding tax incentive programs to be included as part of the governor’s biennial budget submission to the Legislature.

Required information would include the:
• number and type of jobs created;
• average wage and benefits of those jobs; and
• recommendations on whether to continue, modify or terminate such incentives.

The state Department of Revenue currently is required to submit an annual tax expenditure report to the Legislature, Conrad said, but it is directed to the Revenue Committee and is not a part of the budget process.

“We have some work to do to ensure that we’re being good stewards of taxpayer dollars,” she said.

Renee Fry, executive director of the OpenSky Institute, testified in support of the bill, saying Nebraska currently lacks a functioning process by which to evaluate tax incentive programs and draw clear conclusions about whether they should be continued.

“This [bill] is a great opportunity to make sure that recommendations regarding these programs are being put forward,” she said.

No opposition testimony was given and the committee took no immediate action on the bill.