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LEGISLATURE OF NEBRASKA
ONE HUNDRED NINTH LEGISLATURE
SECOND SESSION
LEGISLATIVE BILL 1044
Introduced by Prokop, 27.
Read first time January 14, 2026
Committee: Banking, Commerce and Insurance
A BILL FOR AN ACT relating to the Business Innovation Act; to amend1
sections 81-12,155, 81-12,158, 81-12,160, and 81-12,163, Reissue2
Revised Statutes of Nebraska; to change provisions relating to a3
qualified action plan, a financial assistance program for creating4
prototypes, a financial assistance program for commercializing5
products and processes, and legislative intent for appropriations;6
to repeal the original sections; and to declare an emergency.7
Be it enacted by the people of the State of Nebraska,8
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Section 1. Section 81-12,155, Reissue Revised Statutes of Nebraska,1
is amended to read: 2
81-12,155 In selecting projects to receive financial assistance3
under the Business Innovation Act, the department shall develop a4
qualified action plan by January 1 of each even-numbered year. The plan5
shall set forth selection criteria to be used to determine priorities6
which are appropriate to local conditions and the state's economy,7
including the state's immediate need for innovation development, proposed8
increases in jobs and investment, private dollars leveraged, industry9
support and participation, and repayment, in part or in whole, of10
financial assistance awarded under the act. The department shall submit11
the plan to the Governor for approval. 12
Sec. 2. Section 81-12,158, Reissue Revised Statutes of Nebraska, is13
amended to read: 14
81-12,158 (1) The department shall establish a financial assistance15
program to provide financial assistance to businesses that employ no more16
than five hundred employees or to individuals for the purposes of17
creating a prototype of a product stemming from research and development18
at a business operating in Nebraska or a public or private college or19
university in Nebraska. 20
(2)(a) Until three months after April 20, 2022, funds shall be21
matched by nonstate funds equivalent in money equal to fifty percent of22
the funds requested; and 23
(b) Beginning three months after April 20, 2022, funds shall be24
matched by nonstate funds equivalent in money equal to:25
(i) Twenty-five percent of the funds requested if the applicant's26
principal residence or principal place of business is located in an27
economic redevelopment area within a city of the metropolitan class; or28
(ii) Fifty percent of the funds requested for any other applicant.29
(3) Matching funds may be from any nonstate source, including30
private foundations, federal or local government sources, quasi-31
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governmental entities, or commercial lending institutions, or any other1
funds whose source does not include funds appropriated by the2
Legislature. 3
(4) The amount the department may provide shall not exceed one4
hundred fifty thousand dollars per project. 5
(5) A business or individual applying for financial assistance under6
this section shall include a business plan that includes a proof-of-7
concept demonstration. 8
(6) Financial assistance under this section shall be expended within9
twenty-four months after the date of the awarding decision.10
(7) The department shall award at least four million dollars per11
year and may award up to six million dollars per year for financial12
assistance under this section. 13
Sec. 3. Section 81-12,160, Reissue Revised Statutes of Nebraska, is14
amended to read: 15
81-12,160 (1) The department shall establish a financial assistance16
program to provide financial assistance to businesses operating in17
Nebraska that employ no more than five hundred employees or to18
individuals that have a prototype of a product or process for the19
purposes of commercializing such product or process. The applicant shall20
submit a feasibility study stating the potential sales and profit21
projections for the product or process. 22
(2) The department shall create a program with the following23
provisions to support commercialization of a product or process:24
(a) Commercialization infrastructure documentation, including market25
assessments and start-up strategic planning; 26
(b) Promotion, marketing, advertising, and consulting;27
(c) Management and business planning support;28
(d) Linking companies and entrepreneurs to mentors;29
(e) Preparing companies and entrepreneurs to acquire venture30
capital; and 31
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(f) Linking companies to sources of capital. 1
(3) Funds shall be matched by nonstate funds equal to fifty percent2
of the funds requested. Matching funds may be from any nonstate source,3
including private foundations, federal or local government sources,4
quasi-governmental entities, or commercial lending institutions, or any5
other funds whose source does not include funds appropriated by the6
Legislature. 7
(4) The department shall not provide more than five hundred thousand8
dollars to any one project. Each year the department shall award at least9
four million dollars and may award up to six million dollars under this10
section. 11
(5) Financial assistance provided under this section shall be12
expended within twenty-four months after the date of the awarding13
decision. 14
(6) To carry out this section, the department shall contract with15
one statewide venture development organization that is incorporated in16
the State of Nebraska and exempt for federal tax purposes under section17
501(c)(3) of the Internal Revenue Code. 18
Sec. 4. Section 81-12,163, Reissue Revised Statutes of Nebraska, is19
amended to read: 20
81-12,163 (1) It is the intent of the Legislature to appropriate21
fifteen million dollars to the department for fiscal year 2026-27 and22
each fiscal year thereafter for purposes of carrying out the Business23
Innovation Act. 24
(2) (1) It is the intent of the Legislature that (a) the four25
million dollars saved due to the elimination of funding for the Angel26
Investment Tax Credit Act be used to increase the appropriation to the27
department for the Business Innovation Act by four million dollars for28
fiscal year 2021-22 and each fiscal year thereafter and (b) the one29
hundred thousand dollars saved due to the reduction in tax credits30
authorized under the Angel Investment Tax Credit Act for calendar year31
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2019 be used to increase the appropriation to the Department of Revenue1
by one hundred thousand dollars for fiscal year 2019-20 to offset the2
costs incurred by the Department of Revenue to implement Laws 2019,3
LB334. 4
(3) (2) Up to five percent of the funds appropriated for the5
Business Innovation Act may be used by the department, or by a nonprofit6
entity with which the department contracts, for administrative expenses.7
Sec. 5. Original sections 81-12,155, 81-12,158, 81-12,160, and8
81-12,163, Reissue Revised Statutes of Nebraska, are repealed.9
Sec. 6. Since an emergency exists, this act takes effect when10
passed and approved according to law. 11
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