The proposed bill, known as the Urban Development Incentive Act, aims to address economic challenges in distressed areas of Nebraska by providing targeted incentives for small and emerging developers. The bill outlines the criteria for economically distressed areas, defines key terms such as "affordable commercial space" and "eligible developer," and establishes a grant program administered by the Department of Economic Development. This program will fund real estate development projects that create affordable commercial spaces, with specific grant amounts allocated for various project-related expenses, including job creation, public consultations, sustainability features, and technical assistance.

Additionally, the bill mandates the department to submit an annual report to the Governor and Legislature detailing the grants awarded, the types of projects funded, and the jobs created as a result. It expresses the Legislature's intent to appropriate $46.5 million annually from the General Fund to support the act's implementation. The department is also authorized to adopt rules and regulations necessary for the act's execution. The act is set to take effect immediately upon passage due to the declaration of an emergency.