LB1356 LB1356
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LEGISLATURE OF NEBRASKA
ONE HUNDRED EIGHTH LEGISLATURE
SECOND SESSION
LEGISLATIVE BILL 1356
Introduced by Wayne, 13.
Read first time January 17, 2024
Committee: Revenue
1 A BILL FOR AN ACT relating to the Community Development Assistance Act;
2 to amend sections 13-203, 13-204, 13-205, 13-206, 13-207, and
3 13-208, Reissue Revised Statutes of Nebraska; to redefine terms; to
4 change provisions relating to program proposals and review, powers
5 and duties of the Director or Economic Development and the
6 Department of Economic Development, and eligibility for and maximum
7 limits on tax credits; to eliminate obsolete provisions; to
8 harmonize provisions; and to repeal the original sections.
9 Be it enacted by the people of the State of Nebraska,
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1 Section 1. Section 13-203, Reissue Revised Statutes of Nebraska, is
2 amended to read:
3 13-203 For purposes of the Community Development Assistance Act,
4 unless the context otherwise requires:
5 (1) Business firm shall mean any business entity, including a
6 corporation, a fiduciary, a sole proprietorship, a partnership, a limited
7 liability company, a corporation having an election in effect under
8 Chapter 1, subchapter S of the Internal Revenue Code, as defined in
9 section 49-801.01, subject to the state income tax imposed by section
10 77-2715 or 77-2734.02, an insurance company paying premium or related
11 retaliatory taxes in this state pursuant to section 44-150 or 77-908, or
12 a financial institution paying the tax imposed pursuant to sections
13 77-3801 to 77-3807;
14 (2) Community services shall mean any type of the following in a
15 community development area: (a) Employment training; (b) human services;
16 (c) medical services; (d) physical facility and neighborhood development
17 services; (e) recreational services or activities; (f) educational
18 services; or (g) crime prevention activities, including, but not limited
19 to, (i) the instruction of any individual in the community development
20 area that enables him or her to acquire vocational skills, (ii)
21 counseling and advice, (iii) emergency services, (iv) community, youth,
22 day care, and senior citizen centers, (v) in-home services, (vi) home
23 improvement services and programs, and (vii) any legal enterprise which
24 aids in the prevention or reduction of crime; (h) operations for a sports
25 complex or sports venue as defined in section 13-3102; or (i) operations
26 of any inland port authority created under the Municipal Inland Port
27 Authority Act;
28 (3) Department shall mean the Department of Economic Development;
29 (4) Director shall mean the Director of Economic Development;
30 (5) Community development area shall mean any village, city, county,
31 unincorporated area of a county, or census tract which has been
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1 designated by the department as an area of chronic economic distress or
2 any inland port district created pursuant to the Municipal Inland Port
3 Authority Act;
4 (6) Community assistance shall mean furnishing financial assistance,
5 labor, material, or technical advice to aid in the physical improvement
6 of any part or all of a community development area;
7 (7) Community betterment organization shall mean (a) any
8 organization performing community services or offering community
9 assistance in a community development area and to which contributions are
10 tax deductible under the provisions of the Internal Revenue Service of
11 the United States Department of the Treasury, and (b) a county, city, or
12 village performing community services or offering community assistance in
13 a community development area, or (c) any inland port authority created
14 under the Municipal Inland Port Authority Act; and
15 (8) Area of chronic economic distress shall mean an area of the
16 state which meets any of the following conditions:
17 (a) An unemployment rate which exceeds the statewide average
18 unemployment rate;
19 (b) A per capita income below the statewide average per capita
20 income; or
21 (c) A population loss between the two most recent federal decennial
22 censuses.
23 Sec. 2. Section 13-204, Reissue Revised Statutes of Nebraska, is
24 amended to read:
25 13-204 Any community betterment organization which provides
26 community assistance or community services in a community development
27 area may apply any time during the fiscal year to the department to have
28 one or more programs or projects certified for tax credit status as
29 provided in sections 13-205 to 13-208. The proposal shall set forth the
30 program or project to be conducted, the community development area, the
31 estimated amount to be required for completion of the program or project
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1 or the annual estimated amount required for an ongoing program or
2 project, the plans for implementing the program or project, and the
3 amount of contributions committed or anticipated for such activities or
4 services.
5 Sec. 3. Section 13-205, Reissue Revised Statutes of Nebraska, is
6 amended to read:
7 13-205 (1) A proposal submitted to the department shall only
8 include all of the following:
9 (a) A description of the program or project to be conducted,
10 including the community assistance or community services that will be
11 provided as a result of the program or project;
12 (b) A description of the community development area, including the
13 geographical location and boundaries of the community development area;
14 (c) Evidence that the program or project addresses at least one of
15 the following: (i) The program or project will result in the provision of
16 essential services to low-income and moderate-income persons that are not
17 adequately being provided in the affected area and for which there are no
18 other readily available resources; (ii) the program or project tangibly
19 contributes to the development of lasting cooperation and partnership
20 efforts of area organizations and businesses; (iii) the program or
21 project will contribute to the operations of a sports complex or sports
22 venue as defined in section 13-3102; (iv) the program or project will
23 contribute to the operations of any inland port authority; (v) the
24 program or project will result in economic development and job creation;
25 or (vi) the program or project will result in an innovative and resilient
26 community;
27 (d) The estimated amount to be required for completion of the
28 program or project, including (i) a proposed budget for the program or
29 project with information on personnel and administrative overhead costs,
30 (ii) the amount of tax credits requested for the year of application, and
31 (iii) the amount of contributions pledged or anticipated from individuals
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1 or business firms eligible for tax credits as well as other sources of
2 funding for the program or project;
3 (e) The annual estimated amount required for an ongoing program or
4 project, including a proposed annual budget with information on personnel
5 and administrative overhead costs, and the amount of tax credits
6 anticipated to be sought in future years;
7 (f) A description of the community betterment organization's plans
8 and capacity for implementing the program or project and continuing the
9 program or project;
10 (g) Documentation that the proposal was reviewed by the appropriate
11 subdivision of local government, including any letters of support on the
12 proposal provided by such subdivision of local government, and
13 information regarding whether the proposal is consistent with any
14 community development plan that may exist for the area in which the
15 community betterment organization will provide community services or
16 community assistance; and
17 (h) If the community betterment organization is recognized by the
18 Internal Revenue Service of the United States Department of the Treasury
19 as an organization to which contributions are tax deductible,
20 documentation of such recognition.
21 (2) The department will review all proposals based on the following
22 criteria:
23 (a) The extent to which the proposed program or project will reduce
24 chronic economic distress of the area, create or maintain jobs, provide
25 youth sport participation, or stimulate economic development;
26 (b) The extent to which the proposed program or project addresses at
27 least one of the following: (i) The program or project will result in the
28 provision of essential services to low-income and moderate-income persons
29 that are not adequately being provided in the affected area and for which
30 there are no other readily available resources; (ii) the program or
31 project tangibly contributes to the development of lasting cooperation
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1 and partnership efforts of area organizations and businesses; (iii) the
2 program or project will contribute to the operations of a sports complex
3 or sports venue as defined in section 13-3102; (iv) the program or
4 project will contribute to the operations of any inland port authority;
5 (v) the program or project will result in economic development and job
6 creation; or (vi) the program or project will result in an innovative and
7 resilient community;
8 (c) A demonstrated capacity and performance of the community
9 betterment organization to execute the proposed program or project;
10 (d) The involvement of residents and community support of the
11 affected area in the planning of the proposed program or project and the
12 extent to which they will be involved in its implementation; and
13 (e) The extent to which private sector contributions have been
14 committed to the proposed program or project, contingent upon approval of
15 the program or project by the department.
16 (3) Proposals submitted subsequent to the first year shall be
17 evaluated on performance of the prior year's program or project, other
18 resources developed, and continued need.
19 If the subdivision of local government has adopted a community
20 development plan for an area which includes the area in which the
21 community betterment organization is providing community assistance or
22 community services, the organization shall submit a copy of the program
23 proposal to the chief executive officer of such subdivision. If the
24 program proposal is consistent with the adopted community development
25 plan, the chief executive officer shall so certify to the department for
26 the department's approval or disapproval. If the program proposal is not
27 consistent with the adopted community development plan of the local
28 subdivision, the chief executive officer shall so indicate and the
29 proposal shall not be approved by the department. If the proposed
30 activities are consistent with the adopted community development plan,
31 but for other reasons they are not viewed as appropriate by the local
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1 subdivision, the chief executive officer shall so indicate and the
2 department shall review the program proposal and approve or disapprove
3 it. The local subdivision shall review the proposal within forty-five
4 days from the date of receipt for review. If the subdivision does not
5 issue its finding concerning the proposal within forty-five days after
6 receipt, the proposal shall be deemed approved. The department shall
7 approve or disapprove a program proposal submitted pursuant to section
8 13-204 within forty-five days of receipt by the department.
9 Sec. 4. Section 13-206, Reissue Revised Statutes of Nebraska, is
10 amended to read:
11 13-206 (1) The director shall adopt and promulgate rules and
12 regulations for the approval or disapproval of the program proposals
13 submitted pursuant to section 13-205 taking into account the economic
14 need level and the geographic distribution of the population of the
15 community development area. The director shall also adopt and promulgate
16 rules and regulations concerning the amount of the tax credit for which a
17 program shall be certified. The tax credits provided for in sections
18 13-205 to 13-208 shall be available for contributions to a certified
19 program or project which may qualify as a charitable contribution
20 deduction on the federal income tax return filed by the business firm or
21 individual making such contribution. The decision of the department to
22 approve or disapprove all or any portion of a proposal shall be in
23 writing. If the proposal is approved, the maximum tax credit allowance
24 for the certified program shall be stated along with the approval. The
25 maximum tax credit allowance approved by the department shall be final
26 for the fiscal year in which the program or project is certified. A copy
27 of all decisions shall be transmitted to the Tax Commissioner. A copy of
28 all credits allowed to business firms under sections 44-150 and 77-908
29 shall be transmitted to the Director of Insurance.
30 (2) For all business firms and individuals eligible for the credit
31 allowed by section 13-207, except for insurance companies paying premium
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1 and related retaliatory taxes in this state pursuant to section 44-150 or
2 77-908, the Tax Commissioner shall provide for the manner in which the
3 credit allowed by section 13-207 shall be taken and the forms on which
4 such credit shall be allowed. The Tax Commissioner shall adopt and
5 promulgate rules and regulations for the method of providing tax credits.
6 The Director of Insurance shall provide for the manner in which the
7 credit allowed by section 13-207 to insurance companies paying premium
8 and related retaliatory taxes in this state pursuant to sections 44-150
9 and 77-908 shall be taken and the forms on which such credit shall be
10 allowed. The Director of Insurance may adopt and promulgate rules and
11 regulations for the method of providing the tax credit. The Tax
12 Commissioner shall allow against any income tax due from the insurance
13 companies paying premium and related retaliatory taxes in this state
14 pursuant to section 44-150 or 77-908 a credit for the credit provided by
15 section 13-207 and allowed by the Director of Insurance.
16 (3) The decision of the department to approve or disapprove all or
17 any portion of a proposal or certify a program or project for a
18 designated amount of tax credits shall be provided in writing within
19 forty-five days after receipt of a complete application. If the program
20 or project is approved or certified for a designated amount of tax
21 credits, the department shall prepare and transmit a written agreement to
22 the community betterment organization. The date the written agreement is
23 fully executed by the community betterment organization and the
24 departme