Tax incentive program updated

Lawmakers passed a bill May 20 that updates the provisions of a major tax incentive program passed in 2020.

LB18, sponsored by Seward Sen. Mark Kolterman, makes three changes to the ImagiNE Nebraska Act, a business tax incentive program that replaced the Nebraska Advantage Act.

Currently, the act requires that all qualifying new full-time jobs be filled by individuals who reside in Nebraska. The bill removes this provision and instead requires that an individual in a qualifying job be employed in the state and be subject to Nebraska income tax on compensation received.

LB18 also changes the definition of two qualifying business activities under the ImagiNE Act to clarify terms and conform with a recent U.S. Supreme Court decision.

Lawmakers voted 34-10 to pass the bill.