All Roll Calls
Yes: 306 • No: 268
NebraskaLB1165109th Legislature 1st and 2nd SessionslegislatureWALLET
Adopt the Grow the Good Life Act, provide an income tax credit, change provisions relating to the Convention Center Facility Financing Assistance Act, the ImagiNE Nebraska Act, the Nebraska Advantage Act, and the Site and Building Development Act, and create grant programs to help employers retain or attract employees and to assist cities of the first class impacted by private entity closure or downsizing
Sponsored By: R. Brad von Gillern
Signed by Governor
Revenue Committee
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Bill Overview
Analyzed Economic Effects
14 provisions identified: 8 benefits, 2 costs, 4 mixed.
Grants: $5 per square foot after ownership change
For fiscal years 2027–28 and 2028–29, employers can get grants of $5 per square foot for capital improvements tied to keeping or recruiting workers after a change in ownership and control. The Department can award up to $2.5 million total each fiscal year. Eligible improvements include work done in the 24 months before the ownership change through the end of the fiscal year you receive the grant.
5% wage credit with $40M cap
Qualified employers with a state agreement get a wage tax credit equal to 5% of total Nebraska pay to qualified employees each year. The program cap is $4,000,000 per year and $40,000,000 total, and earlier approvals are funded first. Employers can apply the credit to reduce income tax withholding or payor tax liability.
Bigger ImagiNE credits and new uses
The law raises several ImagiNE Nebraska credit rates and lets two one‑point increases stack when you qualify. Credits count for each performance year you meet the job and investment levels, and some pre‑performance investments can count in the first year. You may use credits to cut employer withholding tied to new hires; wages above $1,000,000 per person do not count. You can turn credits into refunds of certain sales and use taxes for qualified‑location purchases, repay approved training or infrastructure loans, and get state payments for eligible training and talent recruitment made after your application is complete. After an ownership change, only the extra employees over the prior year who are offered minimum essential coverage and average at least $100,000 in pay count toward that bump; rural and high‑investment rules can further boost credits.
Higher ImagiNE credits for key projects
ImagiNE credit rates go up by 1 percentage point in areas declared extremely blighted before the ramp‑up ends. Rates also rise by 1 point if you have 3,000 or more Nebraska FTEs and hire at least 500 new employees within seven years after a change in ownership and control. Once you hit 500 new hires, the higher rate applies to all years in the performance period. You may qualify for one or both increases.
Wage retention credit for big mergers
The law creates a wage retention tax credit to keep large corporate headquarters and jobs in Nebraska after a merger between January 1, 2026 and December 31, 2028. Eligible employers have had a Nebraska HQ for 10+ years, had over 3,000 Nebraska FTEs in the base year, and the out‑of‑state acquirer has over $50 billion in value and gets at least 20% ownership. Employers must keep the Nebraska HQ and at least 90% of base‑year Nebraska employment, offer minimum essential coverage, and verify new hires within 90 days. Credits equal 5% of pay for retained Nebraska employees at or above the statewide average wage, with a $5,000,000 annual cap per employer and a $50,000,000 statewide cap; wages above $1,000,000 per employee do not count. Applications run from January 1, 2027 to May 31, 2029; credits are earned during the earning period and can be used during a ten‑year usage period starting January 1, 2031. There is a nonrefundable $5,000 application fee, tight limits on credit transfers, confidentiality for application materials, and a rule that fixes the filing date when a complete application is submitted. If you fail to keep the HQ or 90% of jobs, credits are recaptured and treated as tax due.
Grants for cities after plant closures
For fiscal years 2026–27 and 2027–28, first‑class cities with under 50,000 people hit by a sudden major private closure or downsizing can get grants or zero‑interest loans. Funds can buy land, build infrastructure, or ready big sites and buildings, up to $2,500,000 total per year. The law also waives matching‑fund requirements for inland port authorities and for certain employers and cities named in the statute.
Nine-year property tax break at sites
Personal property at a qualified location is exempt if you meet one of three tests before ramp‑up ends: (1) invest at least $5,000,000 and add 30+ new employees; (2) invest at least $50,000,000, pay at least 150% of the statewide average wage, and offer minimum essential health coverage; or (3) invest at least $250,000,000 and add 250+ new employees. Under the $5M or $50M tests, data‑center property and certain ag‑processing equipment can be exempt; under the $250M test, all personal property can be exempt. Only property placed in service after your complete application qualifies. The exemption runs from the first January 1 after you exceed a threshold through the ninth December 31 after the first qualifying year. File an exemption claim each year by May 1 for each agreement and county, give a copy to the county assessor, and the Tax Commissioner certifies by August 1.
Electronic hire checks required for ImagiNE
To get an ImagiNE agreement, your business must electronically verify each new Nebraska hire within 90 days. Pay and hours for unverified or ineligible workers do not count toward incentives. Expect added compliance steps to stay eligible.
Nebraska Advantage fees, deadlines, Tier 6 opt in
Application fees are set by tier: $1,000 (Tier 1); $2,500 (Tiers 2, 3, 5); $5,000 (Tier 4); $10,000 (Tier 6). Your application date is fixed when you submit the listed items. Deadlines to meet goals are: by end of year 4 (Tiers 1 and 3, and Tier 6 approved before December 1, 2020), by end of year 6 (Tiers 2, 4, 5), or by end of year 9 (Tier 6 approved on or after December 1, 2020). Some active Tier 6 projects may opt into the new rules by paying a one‑time $90,000 fee. Companies must send an annual update if their sales tax refund timetable changes, or refunds may be delayed until they do.
New rules for claiming ImagiNE credits
Once you sign an ImagiNE agreement, you may claim allowed incentives right away on signed returns; the state can recover errors found later. Refund claims are allowed only after you meet job and investment levels; claims up to $25,000 may be filed once per quarter, larger claims anytime; no interest is paid and proper refunds are paid within 180 days. The Tax Commissioner can claw back wrong payments within three years; credits carry forward through the carryover period and are used after other nonrefundable credits by age. You receive direct payment permits for each qualified location at signing, but you must pay sales and use tax until you hit your targets. Purchasing agents and owners are jointly liable for sales and use tax on property built into a qualified site. Some changes apply based on when you filed your application; you may protest within 60 days and appeal; a 0.5% administrative fee applies to incentives (excluding personal‑property exemptions).
Faster decisions and more transparency
The Director must mail an approval or denial within 30 days of receiving an application unless both sides agree to extend. Agencies may set rules to run the program. Each year, a joint report is due by October 31, with a hearing by December 15, and added details within 30 days if requested by three or more members. Every two years, reports show credits used by agreement and taxpayer name as two‑year totals. The Director can access needed tax and incentive records through the Tax Commissioner and may contract for services.
Use credits to help with child care
You can use ImagiNE credits to get a state payment for dependent child care costs you paid for employees. You may be reimbursed for up to 50% of those costs. Costs must be incurred during the performance period or the carryover period.
Limits on state help for big arenas
For applications filed on or after February 1, 2008, a publicly owned sports arena with more than 16,000 seats is not eligible for state convention‑center financing unless it is in a city of the primary class. Political subdivisions must exclude large arenas outside such cities.
State economic director approves ImagiNE deals
The economic development director decides if ImagiNE applications are complete, if a site is a qualified location, and approves and signs agreements. The Tax Commissioner keeps other legal interpretations. The Labor Commissioner must share job and wage data with the director on request.
Sponsors & Cosponsors
Sponsor
R. Brad von Gillern
Senate
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
legislature vote • 4/10/2026
Final Reading
Yes: 42 • No: 7
legislature vote • 4/7/2026
Vote
Yes: 13 • No: 19 • Other: 17
legislature vote • 4/7/2026
Vote
Yes: 33 • No: 0 • Other: 16
legislature vote • 3/24/2026
Vote
Yes: 38 • No: 3 • Other: 8
legislature vote • 3/24/2026
Vote
Yes: 34 • No: 3 • Other: 12
legislature vote • 3/24/2026
Vote
Yes: 11 • No: 26 • Other: 12
legislature vote • 3/24/2026
Vote
Yes: 9 • No: 24 • Other: 16
legislature vote • 3/24/2026
Vote
Yes: 7 • No: 30 • Other: 12
legislature vote • 3/24/2026
Vote
Yes: 6 • No: 27 • Other: 16
legislature vote • Unknown
Vote
Yes: 6 • No: 27 • Other: 16
legislature vote • Unknown
Vote
Yes: 7 • No: 30 • Other: 12
legislature vote • Unknown
Vote
Yes: 34 • No: 3 • Other: 12
legislature vote • Unknown
Vote
Yes: 11 • No: 26 • Other: 12
legislature vote • Unknown
Vote
Yes: 9 • No: 24 • Other: 16
legislature vote • Unknown
Vote
Yes: 33 • No: 0 • Other: 16
legislature vote • Unknown
Vote
Yes: 13 • No: 19 • Other: 17
Actions Timeline
Provisions/portions of LB1192 amended into LB1165 by AM2504
4/17/2026legislatureProvisions/portions of LB1191 amended into LB1165 by AM2504
4/17/2026legislatureProvisions/portions of LB806 amended into LB1165 by AM2504
4/17/2026legislaturePresented to Governor on April 10, 2026
4/17/2026legislatureApproved by Governor on April 16, 2026
4/16/2026legislaturePresident/Speaker signed
4/10/2026legislaturePassed on Final Reading with Emergency Clause 42-7-0
4/10/2026legislatureDispensing of reading at large approved
4/10/2026legislatureConrad FA943 withdrawn
4/10/2026legislatureConrad FA942 withdrawn
4/10/2026legislatureEnrollment and Review ST97 recorded
4/8/2026legislatureEnrollment and Review ST97 filed
4/8/2026legislaturePlaced on Final Reading with ST97
4/8/2026legislatureAdvanced to Enrollment and Review for Engrossment
4/7/2026legislatureConrad AM3117 lost
4/7/2026legislatureConrad AM3117 filed
4/7/2026legislatureConrad MO384 withdrawn
4/7/2026legislatureConrad FA941 withdrawn
4/7/2026legislatureConrad FA940 withdrawn
4/7/2026legislaturevon Gillern AM3035 adopted
4/7/2026legislaturevon Gillern AM3035 filed
4/7/2026legislatureKauth FA825 withdrawn
4/7/2026legislatureNo objections to unanimous consent request to withdraw and substitute amendment
4/7/2026legislatureConrad MO383 withdrawn
4/7/2026legislatureConrad MO381 withdrawn
4/7/2026legislature
Bill Text
Introduced
1/20/2026
Enrolled / Slip Law
Final / Enacted
Related Bills
LB1165A, Appropriation Bill
LB1126A, Appropriation Bill
LB1126, Adopt the Infrastructure Development Investment Program Act and change and eliminate provisions relating to the Rural Road Improvement District Act, the Political Subdivisions Construction Alternatives Act, the Transportation Innovation Act, the Motor Vehicle Safety Responsibility Act, the Nebraska Rules of the Road, intrastate medicaid nonemergency medical transportation services, and wireless service surcharges
LB1135, Adopt the Service Contract Reporting Act, authorize municipalities to contract regarding parking facilities, change provisions of the Community Development Law, the Nebraska Municipal Land Bank Act, and the Property Assessed Clean Energy Act, and provide for the sale of certain waterworks, sewer systems, and water systems to Indian tribes
LB1087, Create the Nebraska-Ireland Commission
LB1114, Adopt the Community Improvement District Act and the New Taxpayer Recruitment Grant Act, authorize community improvement districts to levy property taxes, and change provisions related to the Community Development Law, the Municipal Inland Port Authority Act, extraterritorial jurisdiction, sanitary and improvement districts, housing authorities, housing agencies, the Nebraska Housing Agency Act, and the Local Option Municipal Economic Development Act