The Defense Efforts Workforce Act is designed to encourage employers to establish their workforce in Nebraska to bolster military defense initiatives and improve the state's capabilities in global defense communications and technologies. The bill defines "qualified employers" and "qualified employees," setting requirements such as employing a minimum number of full-time qualified employees and paying wages at least 150% of the Nebraska statewide average hourly wage to qualify for benefits. It also introduces a wage credit system, allowing qualified employers to receive a credit of 5% of total compensation paid to qualified employees, capped at $4 million per year per employer and a total of $40 million for all employers combined.

Additionally, the act mandates new reporting requirements for taxpayer agreements, necessitating an annual report that includes a list of agreements from the previous year, those still active, and the identities of the involved taxpayers. The report must also detail the total credits used for each agreement every two years, with the first year of credit usage combined with the second year's data. Importantly, any information protected by state or federal confidentiality laws will be excluded from the report. The provisions of this bill are set to take effect on July 1, 2027.

Statutes affected:
Introduced: 77-2715.03