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 outlines definitions for key terms, including "affordable commercial space," "economically distressed area," and "eligible developer," and sets forth the criteria for grant funding to support real estate development projects that enhance affordable commercial space in these areas.

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 meet specific criteria. The funding can cover project costs, job creation, public consultations, sustainability features, and technical assistance, with a total annual cap on grants. Additionally, the department is required to submit an annual report detailing the grants awarded, projects funded, and jobs created. The bill also expresses the Legislature's intent to allocate $46.5 million annually from the General Fund to support the Act's implementation and allows the department to create necessary regulations for its execution. An emergency clause is included, allowing the Act to take effect immediately upon passage.