{"id":21505,"date":"2017-03-28T15:50:06","date_gmt":"2017-03-28T21:50:06","guid":{"rendered":"http:\/\/update.legislature.ne.gov\/?p=21505"},"modified":"2017-03-28T15:50:06","modified_gmt":"2017-03-28T21:50:06","slug":"tax-credit-carry-over-extension-advanced","status":"publish","type":"post","link":"https:\/\/update.legislature.ne.gov\/?p=21505","title":{"rendered":"Tax credit carry-over extension advanced"},"content":{"rendered":"

Businesses that make large capital investments in Nebraska could carry over unused tax credits for a much longer period under a bill advanced by the Legislature March 28.<\/p>\n

\"Sen.
Sen. Curt Friesen<\/figcaption><\/figure>\n

LB161, introduced by Sen. Curt Friesen of Henderson, would extend the income tax credit carryover period for companies that file a Tier 6 application under the Nebraska Advantage Act from one year to 20 years after the end of the entitlement period. The change would apply to all Tier 6 project applications filed before, on or after the bill\u2019s effective date.<\/p>\n

The state Department of Revenue estimates that the bill would reduce state tax revenue by $1.8 million in fiscal year 2023-24 and another $1.89 million in FY2024-25.<\/p>\n

The act, which provides tax incentives for businesses to relocate or expand in Nebraska, allows companies to carry over unused credits for a limited number of years depending on which of the act\u2019s six tiers the project falls under.<\/p>\n

Tier 6 is meant to encourage companies to make significant capital investments and bring high-paying jobs to the state. To qualify for Tier 6 benefits, companies must invest $10 million and create 75 new jobs or invest $109 million and create 50 new jobs.<\/p>\n

Friesen said the current carry-over period of one year is too short for Tier 6 companies to use the credits they earn. In comparison, firms may carry forward credits for no more than nine years after application for a Tier 1 or Tier 3 project and for no more than 14 years after application for a Tier 2 or Tier 4 program.<\/p>\n

Extending the carry-over period for Tier 6 companies would attract a wider range of businesses to the state, Friesen said, helping to diversify Nebraska\u2019s economy at a time when the agricultural sector is struggling.<\/p>\n

\u201cThis does not involve any new incentives, it simply allows a company that\u2019s met the threshold to utilize the credits it\u2019s earned,\u201d he said.<\/p>\n

Kiewit, a large construction firm with headquarters in Omaha, is the only company to have qualified for Tier 6 benefits so far, Friesen said.<\/p>\n

A Revenue Committee amendment, adopted 37-0, reduced the proposed carryover period from 20 to 16 years.<\/p>\n

Omaha Sen. Bob Krist supported the bill, saying it is needed to make sure the Nebraska Advantage Act is working as it should.<\/p>\n

\u201cThese are not start-up companies. These are 100-year-old businesses that have been here, done the job and attracted good business [to the state],\u201d he said.<\/p>\n

Senators advanced the bill on a 37-0 vote.<\/p>\n","protected":false},"excerpt":{"rendered":"

Businesses that make large capital investments in Nebraska could carry over unused tax credits for a much longer period under a bill advanced by the Legislature March 28.<\/p>\n","protected":false},"author":1,"featured_media":21486,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"colormag_page_container_layout":"default_layout","colormag_page_sidebar_layout":"default_layout","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[17],"tags":[145],"class_list":["post-21505","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-revenue","tag-sen-curt-friesen"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/update.legislature.ne.gov\/wp-content\/uploads\/2017\/03\/LB339Friesen3-28-17a.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/update.legislature.ne.gov\/index.php?rest_route=\/wp\/v2\/posts\/21505","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/update.legislature.ne.gov\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/update.legislature.ne.gov\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/update.legislature.ne.gov\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/update.legislature.ne.gov\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=21505"}],"version-history":[{"count":1,"href":"https:\/\/update.legislature.ne.gov\/index.php?rest_route=\/wp\/v2\/posts\/21505\/revisions"}],"predecessor-version":[{"id":21506,"href":"https:\/\/update.legislature.ne.gov\/index.php?rest_route=\/wp\/v2\/posts\/21505\/revisions\/21506"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/update.legislature.ne.gov\/index.php?rest_route=\/wp\/v2\/media\/21486"}],"wp:attachment":[{"href":"https:\/\/update.legislature.ne.gov\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=21505"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/update.legislature.ne.gov\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=21505"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/update.legislature.ne.gov\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=21505"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}