All Roll Calls
Yes: 83 • No: 10
NebraskaLB1165A109th Legislature 1st and 2nd SessionslegislatureWALLET
Appropriation Bill
Sponsored By: R. Brad von Gillern
Signed by Governor
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Bill Overview
Analyzed Economic Effects
14 provisions identified: 5 benefits, 3 costs, 6 mixed.
Defense jobs 5% wage credit
Qualified employers under the Defense Efforts Workforce Act get a credit equal to 5% of pay for qualified Nebraska employees. The statewide cap is $4 million each year, and earlier approvals get priority. Credits can reduce income tax withholding or payor liability, and unused credits may carry over.
More ways to use ImagiNE credits
You can use certain ImagiNE credits to cut payroll withholding tied to new employees; wages over $1,000,000 per employee do not count. You can use credits to get refunds of sales and use taxes not otherwise directly refundable for qualified sites. You can apply credits to repay job training or infrastructure loans. You can also get state payments to reimburse approved job training and recruiting costs for new hires paid at least the statewide average wage, using approved training providers and excluding related persons. The law also clarifies how to count new employees and that offering minimum essential health coverage meets the coverage rule.
Lower ImagiNE credits and new fee
The law cuts some ImagiNE credit rates by one percentage point. It also charges a fee equal to 0.5% of any incentives you receive, due before you receive or use them. This reduces the net benefit of the credits.
Tier 6 opt‑in costs $90,000
If you have an active Tier 6 Nebraska Advantage agreement, you may elect the new terms only by paying a one‑time $90,000 fee within the Tax Commissioner’s deadline. If you do not opt in and pay, your old agreement stays in place.
Wage‑retention credits for large employers
The law creates the Grow the Good Life program. A qualifying employer that kept a Nebraska HQ for 10+ years and had 3,000+ Nebraska employees before a 2026–2028 merger with an out‑of‑state buyer over $50 billion can earn a credit equal to 5% of pay for retained Nebraska workers who earn at least the statewide average wage. Total credits are capped at $5 million per year and $50 million overall. Employers must apply between Jan 1, 2027 and May 31, 2029, pay a $5,000 fee, keep at least 90% of base‑year jobs, offer health coverage and required benefits, verify new hires, and sign an agreement. Credits are earned over 10 years and may be used during a 10‑year window starting Jan 1, 2031 to cut income tax and some withholding; transfers are limited. If jobs or the HQ are not kept, the state recaptures 10% of prior‑used credits for each year missed; agencies set rules and file annual reports.
Use credits for employee child care
Businesses with ImagiNE Nebraska credits can get a state payment for dependent child care they pay for employees at qualified sites. Credits can cover up to 50% of these costs. Costs must be incurred during the performance and carryover periods.
Post‑merger grants: $5 per square foot
In fiscal years 2027–28 and 2028–29, employers with a change in ownership and control can get a grant of $5 for each square foot of eligible capital improvements. The program is capped at $2.5 million in grants per fiscal year. Eligible work can date back 24 months before the ownership change through the fiscal year the grant is paid.
E‑Verify required for ImagiNE Nebraska
To enter an ImagiNE Nebraska agreement, a business must use E‑Verify for all new Nebraska hires within 90 days of hire. Hours worked and pay for workers not verified or not eligible are left out of incentive calculations. This can lower the credits a business earns.
ImagiNE refunds: timing and appeals
Allowed refunds are paid within 180 days, but no interest is paid. You may file only one refund claim per calendar quarter unless a single claim is over $25,000, and large claims follow a set November 15 payment schedule based on a June 15 filing cutoff. Unused ImagiNE credits carry forward through the carryover period. The Tax Commissioner can recover erroneous refunds within three years. You can protest a decision within 60 days and then appeal to Lancaster County district court within 30 days of the order; an independent hearing officer is available. New and old rules apply based on when you filed your application.
New rules for contractor purchasing agents
When a purchasing agent is appointed for an ImagiNE project, the agent and the property owner are jointly liable for sales and use tax on materials bought after the appointment and incorporated into the site. Refund claims must include the appointment, the contract price, and contractor certifications showing the share of taxed materials used. These rules change who owes the tax and add paperwork for refunds.
Site development grants and rural share
In fiscal years 2026–27 and 2027–28, the state can give grants or zero‑interest loans to first‑class cities under 50,000 that were hit by a major private‑sector closure, with a yearly cap of $2.5 million. Recipients must provide at least a 100% match, unless a DoD or DoD‑contractor letter for certain projects shows key utilities are outside the project scope; some recipients are exempt from matching and application rules. At least 40% of available funds go to nonmetropolitan counties, and the state funds projects in priority order while reserving money already committed to employer and city awards. A public‑private facility near U.S. Strategic Command needs a support letter and proof of $20 million in private or other funds before any grant is awarded. The law aligns who counts as an “employer” for these programs.
Small grants to keep jobs after ownership changes
The Department of Labor runs small grants to carry out workforce retention or attraction plans after a qualifying ownership change. Economic development groups may apply on behalf of affected employers. Total grants statewide cannot exceed $300,000 and must be awarded within 10 years after the change. If money is short, priority goes to the employer with the largest ten‑year average Nebraska workforce.
Takes effect now; old laws repealed
Because the act declares an emergency, it takes effect as soon as it is passed and approved. The law also repeals several listed sections of Nebraska statutes tied to earlier incentive laws. Those prior rules end.
Tax code references and start dates
Nebraska uses the Internal Revenue Code of 1986 as it existed on April 12, 2018, unless the act says otherwise. Sections 13, 15, 16, and 32 take effect three months after the Legislature adjourns; other sections follow their stated effective dates.
Sponsors & Cosponsors
Sponsor
R. Brad von Gillern
legislature
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
legislature vote • 4/10/2026
Final Reading
Yes: 43 • No: 6
legislature vote • 3/30/2026
Vote
Yes: 40 • No: 4 • Other: 5
Actions Timeline
Presented to Governor on April 10, 2026
4/17/2026legislatureApproved by Governor on April 16, 2026
4/17/2026legislaturePassed on Final Reading with Emergency Clause 43-6*-0
4/10/2026legislaturePresident/Speaker signed
4/10/2026legislaturePlaced on Final Reading
4/8/2026legislatureAdvanced to Enrollment and Review for Engrossment
4/7/2026legislaturePlaced on Select File
3/31/2026legislatureAdvanced to Enrollment and Review Initial
3/30/2026legislatureDate of introduction
3/24/2026legislaturePlaced on General File
3/24/2026legislature
Bill Text
Introduced
4/17/2026
Enrolled / Slip Law
Final / Enacted