Members of the Revenue Committee heard testimony Feb. 25 on a bill that would require regular evaluation of the state\u2019s tax incentive programs.<\/p>\n
LB538, introduced by the Performance Audit Committee, would create an ongoing evaluation process for all current and future tax incentive programs enacted for the purpose of recruiting or retaining businesses in Nebraska.<\/p>\n
Syracuse Sen. Dan Watermeier, chairperson of the committee, said it found that many of the performance audit goals were too broad to achieve meaningful audits of tax incentive programs.<\/p>\n
\u201cOver the interim, we worked with citizens, stakeholders and the Pew Charitable Trusts to craft recommendations for the tax audit process,\u201d he said. \u201c[LB538] will help us draw clear conclusions about how well tax incentives are benefitting Nebraska\u2019s economy and meeting its goals.\u201d<\/p>\n
The Legislature\u2019s Performance Audit Office would develop and publish a schedule for conducting the evaluations, ensuring that each program is reviewed at least once every three years.<\/p>\n
Each evaluation of a tax incentive program would include analyzing program-specific goals, economic and fiscal impacts of the program and recommendations for changes to evaluation procedures that would allow for easier evaluation in the future.<\/p>\n
In addition to future tax incentive programs, eight current programs would be evaluated under LB538, including the:
\n\u2022 Angel Investment Tax Credit Act;
\n\u2022 Beginning Farmer Tax Credit Act;
\n\u2022 Nebraska Advantage Act;
\n\u2022 Nebraska Advantage Microenterprise Tax Credit Act;
\n\u2022 Nebraska Advantage Research and Development Act;
\n\u2022 Nebraska Advantage Rural Development Act;
\n\u2022 Nebraska Job Creation and Mainstreet Revitalization Act; and
\n\u2022 New Markets Job Growth Investment Act.<\/p>\n
Robert Zahradnik, representing the Pew Charitable Trusts, spoke in favor of the bill, saying that states need to regularly review tax incentive programs and make adjustments as needed.<\/p>\n
\u201cDespite the importance of tax incentive programs, they have rarely been studied on a continual basis [in most states],\u201d he said. \u201cIncentive program evaluation can help support economic development for the state and also point out ways that incentives can work better.\u201d<\/p>\n
Platte Institute Director of Research Dick Clark also supported the bill.<\/p>\n
\u201cThis bill would help policymakers and the public understand the return on investment Nebraska gets from these incentive programs,\u2019 he said.<\/p>\n
No one testified in opposition to the bill and the committee took no immediate action on it.<\/p>\n","protected":false},"excerpt":{"rendered":"
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