Nebraska Advantage Act extensions advanced

Senators gave first-round approval March 20 to a bill that would extend sunset dates for the Nebraska Advantage Act.

LB1067, introduced by Kearney Sen. Galen Hadley, would extend the current application deadline for Tier 1 and Tier 3 projects under the Nebraska Advantage Act from Dec. 31, 2015 to Dec. 31, 2017. The deadline for Tier 6 projects under the Act would be extended from Jan. 1, 2016 to Jan. 1, 2018.

Hadley said there is an immediate need to extend the sunset dates.

“If we do not pass this, these tax incentives will soon disappear forever,” he said.

The bill also would change the year in which a business may first claim a tax credit under the Nebraska Advantage Research and Development Act from tax years beginning Dec. 31, 2015 to tax years beginning Dec. 31, 2017.

The state Department of Revenue’s deadline to approve applications under the Nebraska Advantage Microenterprise Tax Credit Act would be extended from Dec. 31, 2015 to Dec. 31, 2017.

Under an amendment introduced by Hadley, adopted 30-0, cities of the first, second and village classes would have one year before being required to remit sales tax revenue to the state for any exemptions claimed under the Nebraska Advantage Act and could remit them over the course of one year.

Hadley offered an additional amendment that would direct the state Department of Revenue to inform cities of pending sales tax debts only if the debt exceeds $1,500.

After adopting the amendment 28-0, senators advanced the bill to select file on a 34-0 vote.