The proposed legislation, known as the Business Innovation and Startup Act, aims to enhance economic development in Nebraska by establishing the Office of Business, Entrepreneurship, and Innovation within the Department of Economic Development. This office will focus on creating and strengthening policies and programs that support innovation and entrepreneurship, particularly in underserved demographic segments and geographic areas. It will also serve as a resource for businesses in operation for five years or less, providing technical support and facilitating access to resources and capital. The office is required to prepare annual reports detailing the impact of state legislation on business and entrepreneurship, as well as its own efforts and strategic goals.

Additionally, the bill encourages state agencies and workforce development boards to allocate a percentage of contracts and funding to new businesses and those providing services to them. Starting July 1, 2026, state agencies are encouraged to award five percent of state contracts and economic development funds to businesses that have been operating for less than five years. The legislation also promotes the elimination of business license and registration fees for new businesses and mandates that a portion of state investment funds be directed towards venture capital funds that invest in these emerging businesses. Overall, the act seeks to foster a supportive environment for new businesses in Nebraska, enhancing their growth and sustainability.