Lawmakers approved a measure May 30 intended to encourage certain defense contractors to locate their highly skilled workers in Nebraska. <\/p>\n
The Revenue Committee introduced LB649 as a shell bill. It was amended to include a proposal sponsored by Bellevue Sen. Rita Sanders that creates a wage credit for companies that employ qualifying workers \u201cexclusively dedicated to supporting military defense efforts\u201d in Nebraska.<\/p>\n
To qualify, a company must employ at least 10 qualified workers in Nebraska during the year immediately before the year of application. For the rest of the 10-year performance period, a company must employ at least the same number of workers as in the prior year.<\/p>\n
A company is required to pay wages at a rate equal to at least 150% of the statewide average hourly wage in the base year and then increase wages by at least 2% per year after that. <\/p>\n
If its application is approved by the state tax commissioner, a company will receive a wage credit equal to 5% of the total compensation paid to all qualified employees during the year. The credit may be used to reduce income tax withholding or payor tax liability. <\/p>\n
The incentive is available beginning July 1, 2027. Total credits are capped at $40 million over 10 years.<\/p>\n
If a company fails to maintain the required employment and wage levels, all or a portion of its credits will be recaptured or disallowed.<\/p>\n
The measure requires the state Department of Revenue to submit an annual report on the program to the Legislature. <\/p>\n
LB649 passed on a vote of 44-4.<\/p>\n","protected":false},"excerpt":{"rendered":"
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