Budget & Taxes (Economic Development)

Nebraska's LB 1156 creates a tax credit program to encourage private investment in economically distressed communities. It allows taxpayers to claim a 50% nonrefundable income tax credit for cash contributions to qualifying organizations (like community development banks or innovation hubs) that fund projects in designated distressed areas. These funds support affordable commercial space, workforce training, site preparation, and small developer projects, with annual limits of $26.5 million for tax credits and $20 million for supplemental grants. The program targets small developers and underrepresented businesses in neighborhoods facing high unemployment and poverty, aiming to expand local economic opportunities without direct public funding.

LB 1167 amends funding for Nebraska's Department of Economic Development's Industrial Recruitment program, specifying how $11 million in General Funds for fiscal year 2026-27 must be used. It directs this funding exclusively for state aid grants under the Business Innovation Act, with $3 million specifically allocated for microenterprise assistance grants. The bill also reappropriates unspent Cash Fund balances from the Site and Building Development Act and states legislative intent to allocate an additional $4.5 million in Cash Funds for future economic development efforts. This bill directly affects the Department of Economic Development and businesses receiving these targeted grants.