This bill amends section 77-6831 of the Revised Statutes Cumulative Supplement, 2024, to enhance the sales and use tax incentives under the ImagiNE Nebraska Act. It establishes specific criteria for taxpayers to qualify for these incentives, which are based on cumulative investments in qualified property and the hiring of new employees. The bill details various thresholds for investment and employment, outlining the corresponding sales and use tax refunds and exemptions available to qualifying taxpayers. Additionally, it introduces provisions for contractors purchasing materials, allowing for refunds or exemptions based on prior tax payments or elections made by the contractors.

Furthermore, the bill specifies the tax credits available to taxpayers for new employee wages and investments, with varying percentages based on the number of new employees hired and the average wages paid. It includes increased credit percentages for investments in extremely blighted areas and for benefit corporations. A new fee structure is also introduced, requiring taxpayers receiving incentives to pay one-half percent of the incentives received, which will support the administration of the Act and be deposited into the newly created ImagiNE Nebraska Cash Fund. The bill repeals the original section 77-6831, indicating a significant update to the existing legal framework governing these tax incentives.

Statutes affected:
Introduced: 77-6831