Read the full stored bill text
LEGISLATURE OF NEBRASKA
ONE HUNDRED NINTH LEGISLATURE
SECOND SESSION
LEGISLATIVE BILL 1191
Introduced by Hallstrom, 1; Brandt, 32; Dorn, 30.
Read first time January 21, 2026
Committee: Revenue
A BILL FOR AN ACT relating to the Nebraska Advantage Act; to amend1
sections 77-5723 and 77-5735, Revised Statutes Cumulative2
Supplement, 2024; to change the time period in which the required3
levels of employment and investment must be met for certain4
projects; to provide for applicability; to provide for a fee; to5
harmonize provisions; and to repeal the original sections.6
Be it enacted by the people of the State of Nebraska,7
LB1191
2026
LB1191
2026
-1-
Section 1. Section 77-5723, Revised Statutes Cumulative Supplement,1
2024, is amended to read: 2
77-5723 (1) In order to utilize the incentives set forth in the3
Nebraska Advantage Act, the taxpayer shall file an application, on a form4
developed by the Tax Commissioner, requesting an agreement with the Tax5
Commissioner. 6
(2) The application shall contain: 7
(a) A written statement describing the plan of employment and8
investment for a qualified business in this state; 9
(b) Sufficient documents, plans, and specifications as required by10
the Tax Commissioner to support the plan and to define a project;11
(c) If more than one location within this state is involved,12
sufficient documentation to show that the employment and investment at13
different locations are interdependent parts of the plan. A headquarters14
shall be presumed to be interdependent with each other location directly15
controlled by such headquarters. A showing that the parts of the plan16
would be considered parts of a unitary business for corporate income tax17
purposes shall not be sufficient to show interdependence for the purposes18
of this subdivision; 19
(d) A nonrefundable application fee of one thousand dollars for a20
tier 1 project, two thousand five hundred dollars for a tier 2, tier 3,21
or tier 5 project, five thousand dollars for a tier 4 project, and ten22
thousand dollars for a tier 6 project. The fee shall be credited to the23
Nebraska Incentives Fund; and 24
(e) A timetable showing the expected sales tax refunds and what year25
they are expected to be claimed. The timetable shall include both direct26
refunds due to investment and credits taken as sales tax refunds as27
accurately as possible. 28
The application and all supporting information shall be confidential29
except for the name of the taxpayer, the location of the project, the30
amounts of increased employment and investment, and the information31
LB1191
2026
LB1191
2026
-2-
required to be reported by sections 77-5731 and 77-5734.1
(3) An application must be complete to establish the date of the2
application. An application shall be considered complete once it contains3
the items listed in subsection (2) of this section, regardless of the Tax4
Commissioner's additional needs pertaining to information or5
clarification in order to approve or not approve the application.6
(4) Once satisfied that the plan in the application defines a7
project consistent with the purposes stated in the Nebraska Advantage Act8
in one or more qualified business activities within this state, that the9
taxpayer and the plan will qualify for benefits under the act, and that10
the required levels of employment and investment for the project will be11
met within the applicable time period prescribed in this subsection, the12
Tax Commissioner shall approve the application. For a tier 6 project13
submitted and approved by the Tax Commissioner prior to December 1, 2020,14
or for any tier 1 or tier 3 project, the required levels of employment15
and investment shall be met prior to the end of the fourth year after the16
year in which the application was submitted. For a tier 6 project17
submitted and approved by the Tax Commissioner on or after December 1,18
2020, or for any tier 2, tier 4, or tier 5 project, the required levels19
of employment and investment shall be met prior to the end of the ninth20
sixth year after the year in which the application was submitted. For any21
tier 2, tier 4, or tier 5 project, the required levels of employment and22
investment shall be met prior to the end of the sixth year after the year23
in which the application was submitted. For a tier 5 project that is24
sequential to a tier 2 large data center project, the required level of25
investment shall be met prior to the end of the fourth year after the26
expiration of the tier 2 large data center project entitlement period27
relating to sales tax exemptions. 28
(5) The Tax Commissioner shall make his or her determination to29
approve or not approve an application within one hundred eighty days30
after the date of the application. If the Tax Commissioner requests, by31
LB1191
2026
LB1191
2026
-3-
mail or by electronic means, additional information or clarification from1
the taxpayer in order to make his or her determination, such one-hundred-2
eighty-day period shall be tolled from the time the Tax Commissioner3
makes the request to the time he or she receives the requested4
information or clarification from the taxpayer. The taxpayer and the Tax5
Commissioner may also agree to extend the one-hundred-eighty-day period.6
If the Tax Commissioner fails to make his or her determination within the7
prescribed one-hundred-eighty-day period, the application shall be deemed8
approved. 9
(6) Within one hundred eighty days after approval of the10
application, the Tax Commissioner shall prepare and mail a written11
agreement to the taxpayer for the taxpayer's signature. The taxpayer and12
the Tax Commissioner shall enter into a written agreement. The taxpayer13
shall agree to complete the project, and the Tax Commissioner, on behalf14
of the State of Nebraska, shall designate the approved plan of the15
taxpayer as a project and, in consideration of the taxpayer's agreement,16
agree to allow the taxpayer to use the incentives contained in the17
Nebraska Advantage Act. The application, and all supporting18
documentation, to the extent approved, shall be considered a part of the19
agreement. The agreement shall state: 20
(a) The levels of employment and investment required by the act for21
the project; 22
(b) The time period under the act in which the required levels must23
be met; 24
(c) The documentation the taxpayer will need to supply when claiming25
an incentive under the act; 26
(d) The date the application was filed; and 27
(e) A requirement that the company update the Department of Revenue28
annually on any changes in plans or circumstances which affect the29
timetable of sales tax refunds as set out in the application. If the30
company fails to comply with this requirement, the Tax Commissioner may31
LB1191
2026
LB1191
2026
-4-
defer any pending sales tax refunds until the company does comply.1
(7) The incentives contained in section 77-5725 shall be in lieu of2
the tax credits allowed by the Nebraska Advantage Rural Development Act3
for any project. In computing credits under the act, any investment or4
employment which is eligible for benefits or used in determining benefits5
under the Nebraska Advantage Act shall be subtracted from the increases6
computed for determining the credits under section 77-27,188. New7
investment or employment at a project location that results in the8
meeting or maintenance of the employment or investment requirements, the9
creation of credits, or refunds of taxes under the Employment and10
Investment Growth Act shall not be considered new investment or11
employment for purposes of the Nebraska Advantage Act. The use of12
carryover credits under the Employment and Investment Growth Act, the13
Invest Nebraska Act, the Nebraska Advantage Rural Development Act, or the14
Quality Jobs Act shall not preclude investment and employment from being15
considered new investment or employment under the Nebraska Advantage Act.16
The use of property tax exemptions at the project under the Employment17
and Investment Growth Act shall not preclude investment not eligible for18
the property tax exemption from being considered new investment under the19
Nebraska Advantage Act. 20
(8) A taxpayer and the Tax Commissioner may enter into agreements21
for more than one project and may include more than one project in a22
single agreement. The projects may be either sequential or concurrent. A23
project may involve the same location as another project. No new24
employment or new investment shall be included in more than one project25
for either the meeting of the employment or investment requirements or26
the creation of credits. When projects overlap and the plans do not27
clearly specify, then the taxpayer shall specify in which project the28
employment or investment belongs. 29
(9) The taxpayer may request that an agreement be modified if the30
modification is consistent with the purposes of the act and does not31
LB1191
2026
LB1191
2026
-5-
require a change in the description of the project. An agreement may not1
be modified to a tier that would grant a higher level of benefits to the2
taxpayer or to a tier 1 project. Once satisfied that the modification to3
the agreement is consistent with the purposes stated in the act, the Tax4
Commissioner and taxpayer may amend the agreement. For a tier 6 project,5
the taxpayer must agree to limit the project to qualified activities6
allowable under tier 2 and tier 4. 7
Sec. 2. Section 77-5735, Revised Statutes Cumulative Supplement,8
2024, is amended to read: 9
77-5735 (1) The changes made in sections 77-5703, 77-5708, 77-5712,10
77-5714, 77-5715, 77-5723, 77-5725, 77-5726, 77-5727, and 77-5731 by Laws11
2008, LB895, and sections 77-5707.01, 77-5719.01, and 77-5719.02 apply to12
all applications filed on and after April 18, 2008. For all applications13
filed prior to such date, the provisions of the Nebraska Advantage Act as14
they existed immediately prior to such date apply.15
(2) The changes made in sections 77-5725 and 77-5726 by Laws 2010,16
LB879, apply to all applications filed on or after July 15, 2010. For all17
applications filed prior to such date, the taxpayer may make a one-time18
election, within the time period prescribed by the Tax Commissioner, to19
have the changes made in sections 77-5725 and 77-5726 by Laws 2010,20
LB879, apply to such taxpayer's application, or in the absence of such an21
election, the provisions of the Nebraska Advantage Act as they existed22
immediately prior to July 15, 2010, apply to such application.23
(3) The changes made in sections 77-5707, 77-5715, 77-5719, and24
77-5725 by Laws 2010, LB918, apply to all applications filed on or after25
July 15, 2010. For all applications filed prior to such date, the26
provisions of the Nebraska Advantage Act as they existed immediately27
prior to such date apply. 28
(4) The changes made in sections 77-5701, 77-5703, 77-5705, 77-5715,29
77-5723, 77-5725, 77-5726, and 77-5727 by Laws 2012, LB1118, apply to all30
applications filed on or after March 8, 2012. For all applications filed31
LB1191
2026
LB1191
2026
-6-
prior to such date, the provisions of the Nebraska Advantage Act as they1
existed immediately prior to such date apply. 2
(5) The changes made in sections 77-5707.01, 77-5709, 77-5712,3
77-5719, 77-5720, 77-5723, and 77-5726 by Laws 2013, LB34, apply to all4
applications filed on or after September 6, 2013. For all applications5
filed prior to such date, the provisions of the Nebraska Advantage Act as6
they existed immediately prior to such date apply. 7
(6) The changes made in section 77-5726 by Laws 2017, LB161, apply8
to all applications filed before, on, or after August 24, 2017.9
(7) The changes made in sections 77-5705, 77-5723, 77-5725, 77-5726,10
and 77-5727 and in subsections (3), (6), and (7) of section 77-5731 by11
Laws 2022, LB1150, apply to any agreement entered into under the Nebraska12
Advantage Act that is still active on January 1, 2023, if the taxpayer13
makes a one-time election, within the time period prescribed by the Tax14
Commissioner, to have such changes apply to such taxpayer's agreement. In15
the absence of such an election, the provisions of such sections and16
subsections as they existed immediately prior to January 1, 2023, shall17
apply to such agreement. For each election made under this subsection,18
the Tax Commissioner shall disclose such election, the identity of the19
taxpayer, and the location of the taxpayer's project to each municipality20
in which the project is located. The Tax Commissioner shall make such21
disclosures within thirty days after the election.22
(8) The changes made in sections 77-5723 and 77-5727 by Laws 2024,23
LB1088, apply to any agreement entered into under the Nebraska Advantage24
Act that is still active on July 19, 2024, if the taxpayer makes a one-25
time election, within the time period prescribed by the Tax Commissioner,26
to have such changes apply to such taxpayer's agreement. In the absence27
of such an election, the provisions of such sections as they existed28
immediately prior to July 19, 2024, shall apply to such agreement.29
(9) The changes made in section 77-5723 by this legislative bill30
apply to any agreement for a tier 6 project entered into under the31
LB1191
2026
LB1191
2026
-7-
Nebraska Advantage Act that is still active on the effective date of this1
act if a taxpayer makes a one-time election and pays a fee of ninety2
thousand dollars, within the time period prescribed by the Tax3
Commissioner, to have such changes apply to such taxpayer's agreement. In4
the absence of such an election, the provisions of such section as it5
existed immediately prior to the effective date of this act shall apply6
to such agreement. 7
Sec. 3. Original sections 77-5723 and 77-5735, Revised Statutes8
Cumulative Supplement, 2024, are repealed. 9
LB1191
2026
LB1191
2026
-8-