The proposed bill establishes the Urban Development Incentive Act, aimed at promoting economic growth and revitalization in economically distressed areas of Nebraska. It recognizes the challenges faced by these areas, such as disinvestment and lack of affordable commercial space, and emphasizes the importance of small and emerging developers in addressing these issues. The Act defines key terms, including "affordable commercial space," "economically distressed area," and "eligible developer," and outlines the criteria for grant funding to support real estate development projects that contribute to urban redevelopment.

The bill mandates the Department of Economic Development to administer a grant program for eligible developers, providing various types of financial assistance for projects that develop or rehabilitate affordable commercial spaces. The funding includes grants for project costs, job creation, public consultations, sustainability features, and technical assistance, with specific limits on the total amount awarded annually. Additionally, the department is required to submit an annual report detailing the grants awarded and the impact on job creation. The bill also expresses the Legislature's intent to appropriate $46.5 million annually for the program and allows the department to create necessary regulations to implement the Act. An emergency clause is included, allowing the Act to take effect immediately upon passage.