Next week marks the end of the legislative hearing process, and the Legislature will be moving to all-day floor debate starting in April. During the month, the Appropriations Committee will continue to meet privately to complete its work on the budget package, which is scheduled to be placed on General File on April 29th and debated from May 6th through May 15th.
Additionally, last week senators designated their personal priority bills for the year, which you can view here. For the rest of session, these bills will be given a preference in scheduling, which becomes increasingly important in the waning days of legislative calendar.
To stay up to date, we invite you to join us for our In the “LegislativeLoop” biweekly Zoom, a 30-minute briefing on all the most recent happenings from the State Capitol, as well as what to expect in the next week. This members-only opportunity gives you exclusive admission to the Capitol Rotunda and helps you understand the latest from Lincoln and how it affects your business. You can sign up for the call here.
This past Wednesday, the Greater Omaha Chamber testified against LB 650, which sunsets several tax credits and income tax reductions, as well as sales tax exemptions that Nebraska businesses rely on to remain competitive. Among the exemptions that are targeted include the “Convenience Rule,” which places burdens on Nebraska employers with remote workers, and opens these employees up to extra tax liability. Furthermore, LB 650 would eliminate Relocation Incentives and Nebraska Urban Redevelopment Act credits, both of which provide incentives that Nebraska employers utilize, and are important tools that our state uses to remain competitive on the national landscape.
However, we’re encouraged by the Revenue Committee’s openness to reconsidering what items would be counterproductive to cut in LB 650, and we remain committed to working with the committee to find the right solution that’s fiscally pragmatic without undercutting Nebraska’s broader economy.
Among upcoming the bills we’re supporting include LB 649, which will have a hearing on Wednesday, March 26th in the Revenue Committee. As amended by Senator Rita Sanders (Bellevue), LB 649 would provide incentives for the defense industry to locate their workforce in Nebraska. Offutt Air Force Base is already a key driver of our region’s economy, and LB 649 builds on this foundation by offering qualified employers in the defense industry an income tax credit of five percent of total compensation of up to $4 million per year in total credits, for employees that relocate to Nebraska. Outside of the direct job creation that LB 649 would support, investments in Nebraska’s defense, communications and aerospace fields can create the conditions for high-tech clusters of employers, making it more likely that other defense and non-defense employers will consider Omaha when choosing where to start or expand a business.
If you’re interested in these bills, or any other legislative issues, we’d love to hear from you. While your Greater Omaha Chamber Public Policy team is hard at work right now at the State Capitol working to strengthen our business climate, never hesitate to share your insights with us on your state legislative priorities at advocacy@omahachamber.org.