LB727 LB727
2023 2023
LEGISLATIVE BILL 727
Approved by the Governor June 6, 2023
Introduced by Linehan, 39.
A BILL FOR AN ACT relating to revenue and taxation; to amend sections 13-2602,
13-2603, 13-2604, 13-2605, 13-2609, 13-2610, 13-2611, 13-2612, 13-2706,
13-3102, 13-3103, 13-3104, 13-3108, 39-2205, 39-2209, 39-2211, 39-2212,
39-2213, 39-2216, 39-2222, 39-2223, 39-2703, 39-2704, 66-4,100, 77-1701,
77-1818, 77-1824, 77-1838, 77-2701.02, 77-2902, 77-2903, 77-2904, 77-2905,
77-2910, 77-2912, 77-3513, 77-3522, 77-4001, 77-4002, 77-4007, 77-4008,
77-4025, 77-5803, 77-5806, and 77-5808, Reissue Revised Statutes of
Nebraska, sections 39-2215, 39-2224, 77-1344, 77-1347, 77-1403, 77-1631,
77-1633, 77-1802, 77-1837, 77-2015, 77-2701, 77-2701.04, 77-2701.41,
77-2704.12, 77-2704.15, 77-2704.36, 77-2711, 77-2713, 77-2715.07, 77-2716,
77-2717, 77-2734.03, 77-27,132, 77-27,187.02, 77-27,188, 77-27,223,
77-3506, 77-3512, 77-6702, 77-6818, 81-1229, 81-12,182, 81-12,245, 82-334,
82-335, 85-1802, 85-2601, 85-2602, 85-2603, and 85-2604, Revised Statutes Cumulative Supplement, 2022, and section 24, Legislative Bill 243, One Hundred Eighth Legislature, First Session, 2023; to adopt the Nebraska Biodiesel Tax Credit Act and the Good Life Transformational Projects Act;
to change provisions relating to the Convention Center Facility Financing Assistance Act, the Civic and Community Center Financing Act, and the Sports Arena Facility Financing Assistance Act; to authorize issuance of
highway bonds under the Nebraska Highway Bond Act; to change provisions relating to the Build Nebraska Act, agricultural or horticultural land receiving special valuation, the achieving a better life experience program, the Property Tax Request Act, enforcement of delinquent taxes on
real property, reports on inheritance taxes, and sales and use tax provisions relating to purchasing agents and exemptions for nonprofit organizations and for purchases by the state, schools, and governmental units; to provide a sales and use tax exemption for baling wire and twine as prescribed; to provide an income tax deduction to retired firefighters for health insurance premiums; to change provisions relating to
distribution of certain sales and use tax revenue and the Nebraska Advantage Rural Development Act; to provide an income tax credit for certain food donations; to change provisions relating to the Nebraska Job Creation and Mainstreet Revitalization Act and homestead exemptions; to impose a tax on electronic nicotine delivery systems; to change provisions relating to the Nebraska Advantage Research and Development Act, the Nebraska Property Tax Incentive Act, and the ImagiNE Nebraska Act; to create a fund; to change provisions relating to a workforce housing grant program, the Nebraska Transformational Projects Act, a grant program of
the Department of Economic Development, a grant program of the Nebraska Arts Council, and the Nebraska educational savings plan trust; to rename the Law Enforcement Education Act and change provisions therein; to change an operative date provision as prescribed; to harmonize provisions; to provide operative dates; to provide severability; to repeal the original sections; and to declare an emergency.
Be it enacted by the people of the State of Nebraska,
Section 1. Sections 1 to 8 of this act shall be known and may be cited as
the Nebraska Biodiesel Tax Credit Act.
Sec. 2. For purposes of the Nebraska Biodiesel Tax Credit Act:
(1) Biodiesel means mono-alkyl esters of long chain fatty acids derived from vegetable oils or animal fats which conform to American Society for Testing and Materials D6751 specifications for use in diesel engines. Biodiesel refers to the pure fuel with less than one percent blended with diesel fuel;
(2) Department means the Department of Revenue;
(3) Motor fuel pump means a meter or similar commercial weighing and measuring device used to measure and dispense motor fuel originating from a motor fuel storage tank;
(4) Retail dealer means a person engaged in the business of storing and dispensing motor fuel from a motor fuel pump for sale on a retail basis;
(5) Retail motor fuel site means a geographic location in this state where
a retail dealer sells and dispenses motor fuel from a motor fuel pump on a retail basis, including a permanent or mobile location; and
(6) Taxpayer means any natural person or any limited liability company,
partnership, private domestic or private foreign corporation, or domestic or
foreign nonprofit corporation certified pursuant to section 501(c)(3) of the Internal Revenue Code of 1986, as amended.
Sec. 3. (1) Any taxpayer who is a retail dealer and who sold and dispensed biodiesel on a retail basis during the prior calendar year through a motor fuel pump located at the taxpayer's retail motor fuel site shall be
eligible to receive tax credits under the Nebraska Biodiesel Tax Credit Act.
(2) The tax credit shall be in an amount equal to fourteen cents multiplied by the total number of gallons of biodiesel sold by the taxpayer on
a retail basis during the prior calendar year through a motor fuel pump located
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at the taxpayer's retail motor fuel site.
(3) The tax credit shall be a refundable credit that may be used against the income tax imposed by the Nebraska Revenue Act of 1967.
(4) Tax credits allowed under this section may be claimed for taxable years beginning or deemed to begin on or after January 1, 2024, under the Internal Revenue Code of 1986, as amended.
(5) To receive tax credits, a taxpayer shall submit an application to the department on a form prescribed by the department. Applications may be
submitted from January 1 to April 15 of each calendar year beginning in 2024.
The application shall include the following information:
(a) The name and address of the taxpayer;
(b) The total number of gallons of biodiesel sold by the taxpayer on a retail basis during the prior calendar year through a motor fuel pump located at the taxpayer's retail motor fuel site; and
(c) Any other documentation required by the department.
Sec. 4. (1) If the department determines that an application is complete and that the taxpayer qualifies for tax credits, the department shall approve the application within the limits set forth in this section and shall certify the amount of tax credits approved to the taxpayer.
(2) The department may approve up to one million dollars in tax credits in
any calendar year. If the total amount of tax credits requested in any calendar year exceeds such limit, the department shall allocate the tax credits proportionally based upon amounts requested.
Sec. 5. (1) A taxpayer shall claim the tax credit by attaching the tax credit certification received from the department under section 4 of this act to the taxpayer's tax return.
(2) Any credit in excess of the taxpayer's tax liability shall be refunded to the taxpayer. In lieu of claiming a refund, the taxpayer may elect to have the excess carried forward to subsequent taxable years. A taxpayer may carry forward the excess tax credits until fully utilized.
Sec. 6. Any tax credit allowable to a partnership, a limited liability company, a subchapter S corporation, a cooperative corporation, or an estate or
trust may be distributed to the partners, limited liability company members,
shareholders, cooperative members, or beneficiaries in the same manner as
income is distributed.
Sec. 7. There shall be no new applications filed under the Nebraska Biodiesel Tax Credit Act after December 31, 2028. All applications and all tax credits pending or approved before such date shall continue in full force and effect.
Sec. 8. The department may adopt and promulgate rules and regulations to
carry out the Nebraska Biodiesel Tax Credit Act.
Sec. 9. Sections 9 to 15 of this act shall be known and may be cited as
the Good Life Transformational Projects Act.
Sec. 10. (1) The purpose of the Good Life Transformational Projects Act is to promote and develop the general and economic welfare of this state and its communities by providing support for unique Nebraska projects that will attract new industries and employment opportunities and further grow and strengthen Nebraska's retail, entertainment, and tourism industries.
(2) The Legislature finds that it will be beneficial to the economic well-
being of the people of this state to encourage transformational development projects within the state that create jobs, infrastructure, and other improvements and attract and retain tourists and college graduates from around the state.
(3) The Legislature further finds that such projects will (a) generate new economic activity, as well as additional state and local taxes from persons residing within and outside the state, (b) create new economic opportunities and jobs for residents, and (c) promote new-to-market retail, entertainment,
and dining attractions.
Sec. 11. For purposes of the Good Life Transformational Projects Act:
(1) Department means the Department of Economic Development; and
(2) Good life district means a district established pursuant to section 13
of this act.
Sec. 12. (1) Until December 31, 2024, any person may apply to the department to create a good life district. All applications shall be in writing and shall contain:
(a) A description of the proposed project to be undertaken within the good life district, including a description of any existing development, an estimate of the total new development costs for the project, and an estimate of the number of new jobs to be created as a result of the project;
(b) A map identifying the good life district to be used for purposes of
the project;
(c) A description of the proposed financing of the project;
(d) Documentation of local financial commitment to support the project,
including all public and private resources pledged or committed to the project and including a copy of any operating agreement or lease with substantial users of the project area; and
(e) Sufficient documents, plans, and specifications as required by the department to define the project, including the following:
(i) A statement of how the jobs and taxes obtained from the project will contribute significantly to the economic development of the state and region;
(ii) Visitation expectations and a plan describing how the number of
visitors to the good life district will be tracked and reported on an annual basis;
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(iii) Any unique qualities of the project;
(iv) An economic impact study, including the anticipated effect of the project on the regional and statewide economies;
(v) Project accountability, measured according to best industry practices;
(vi) The expected return on state and local investment the project is
anticipated to produce; and
(vii) A summary of community involvement, participation, and support for the project.
(2) Upon receiving an application, the department shall review the application and notify the applicant of any additional information needed for a proper evaluation of the application.
(3) The application and all supporting information shall be confidential except for the location of the project, the total new development costs estimated for the project, and the number of new jobs estimated to be created as a result of the project.
Sec. 13. (1) If the department finds that the project described in the application meets the eligibility requirements of this section, the application shall be approved.
(2) A project is eligible if:
(a) The applicant demonstrates that the total new development costs of the project will exceed:
(i) One billion dollars if the project will be located in a city of the metropolitan class;
(ii) Seven hundred fifty million dollars if the project will be located in
a city of the primary class;
(iii) Five hundred million dollars if the project will be located in a city of the first class, city of the second class, or village within a county with a population of one hundred thousand inhabitants or more; or
(iv) One hundred million dollars if the project will be located in a city of the first class, city of the second class, or village within a county with a population of less than one hundred thousand inhabitants;
(b) The applicant demonstrates that the project will directly or
indirectly result in the creation of:
(i) One thousand new jobs if the project will be located in a city of the metropolitan class;
(ii) Five hundred new jobs if the project will be located in a city of the primary class;
(iii) Two hundred fifty new jobs if the project will be located in a city of the first class, city of the second class, or village within a county with a population of one hundred thousand inhabitants or more; or
(iv) Fifty new jobs if the project will be located in a city of the first class, city of the second class, or village within a county with a population of less than one hundred thousand inhabitants; and
(c)(i) For a project that will be located in a county with a population of
one hundred thousand inhabitants or more, the applicant demonstrates that, upon completion of the project, at least twenty percent of sales at the project will be made to persons residing outside the State of Nebraska or the project will generate a minimum of six hundred thousand visitors per year who reside outside the State of Nebraska and the project will attract new-to-market retail to the state and will generate a minimum of three million visitors per year; or
(ii) For a project that will be located in a county with a population of
less than one hundred thousand inhabitants, the applicant demonstrates that,
upon completion of the project, at least twenty percent of sales at the project will be made to persons residing outside the State of Nebraska.
(3) The applicant must certify that any anticipated diversion of state sales tax revenue will be offset or exceeded by sales tax paid on anticipated development costs, including construction to real property, during the same period.
(4) A project is not eligible if the project includes a licensed racetrack enclosure or an authorized gaming operator as such terms are defined in section
9-1103.
(5) Approval of an application under this section shall establish the good life district as that area depicted in the map accompanying the application as
submitted pursuant to subdivision (1)(b) of section 12 of this act. Such district shall last for twenty-five years and shall not exceed two thousand acres in size.
(6) Upon establishment of a good life district under this section, any transactions occurring within the district shall be subject to a reduced sales tax rate as provided in section 77-2701.02.
Sec. 14. The department shall terminate a good life district established pursuant to section 13 of this act if the applicant has not met seventy-five percent of the investment threshold required under subdivision (2)(a) of section 13 of this act within ten years after establishment of such district.
Sec. 15. No provision in the Good Life Transformational Projects Act shall be construed to limit the existing statutory authority of any political subdivision.
Sec. 16. Section 13-2602, Reissue Revised Statutes of Nebraska, is amended to read:
13-2602 (1) The Legislature finds that it will be beneficial to the economic well-being of the people of this state that there be convention and meeting center facilities and sports arena facilities of appropriate size and quality to host regional, national, or international events. Regional refers to
states that border Nebraska; national refers to states other than those that
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border Nebraska; and international refers to nations other than the United States.
(2) The Legislature further finds that such facilities may (a) generate new economic activity as well as additional state and local taxes from persons residing within and outside the state and (b) create new economic opportunities for residents.
(3) In order that the state may receive any long-term economic and fiscal benefits from such facilities, a need exists to provide some state assistance to political subdivisions endeavoring to construct, acquire, substantially reconstruct, expand, operate, improve, or equip such facilities.
(4) Therefore Therefor, it is deemed to be in the best interest of both the state and its political subdivisions that the state assist political subdivisions in financing the construction, acquisition, substantial reconstruction, expansion, operation, improvement, or equipping of such facilities.
(5) The amount of state assistance provided under the Convention Center Facility Financing Assistance Act shall be limited to a designated portion of
state sales tax revenue collected by retailers and operators doing business at
such facilities on sales at such facilities, state sales tax revenue collected on primary and secondary box office sales of admissions to such facilities, and state sales tax revenue collected by associated hotels and nearby retailers.
Sec. 17. Section 13-2603, Reissue Revised Statutes of Nebraska, is amended to read:
13-2603 For purposes of the Convention Center Facility Financing Assistance Act:
(1) Associated hotel means any publicly or privately owned facility in
which the public may, for a consideration, obtain sleeping accommodations and which is located, in whole or in part, within six hundred yards of an eligible facility, measured from any point of the exterior perimeter of the eligible facility but not from any parking facility or other structure, except that if
the eligible facility is within six hundred yards of the State Capitol, the area used in determining associated hotels shall be one or more areas selected by the applicant which aggregate the same total amount of square footage that such area would have contained had the eligible facility not been within six hundred yards of the State Capitol. The area used in determining associated hotels shall be depic