The proposed 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 include thresholds for cumulative investments in qualified property and the hiring of new employees. For instance, taxpayers must make a minimum investment of five million dollars and hire at least thirty new employees, or achieve a cumulative investment of two hundred fifty million dollars with two hundred fifty new hires. The bill also outlines conditions for receiving refunds and exemptions from sales and use taxes for purchases related to qualified locations.

Furthermore, the bill introduces provisions for contractors purchasing materials for qualified projects, allowing tax refunds or exemptions based on prior tax payments. It specifies that taxpayers can earn credits for wages paid to new employees and for new investments, with varying percentages based on investment levels and average wages. The bill also includes incentives for businesses in extremely blighted areas and benefit corporations, while amending existing tax credit provisions to allow credits for wages and investments made during the performance period. Additionally, it establishes a fee structure for taxpayers receiving incentives, contributing to the ImagiNE Nebraska Cash Fund for the act's administration, and repeals the original section 77-6831, indicating a comprehensive update to the legal framework governing these tax incentives.

Statutes affected:
Introduced: 77-6831