May 31, 2005

Dear Fellow Nebraskans:

As the end of this year’s legislative session approaches, I was very pleased to sign into law a package designed to enhance Nebraska’s competitive edge by expanding existing businesses, creating new jobs and attracting new opportunities to our state.

Days before the bill signing for LB 312 and LB 90, I had signed a measure allocating $15 million to job training as part of the new two-year budget, which will help ensure our state’s workforce is prepared for advances in rapidly changing industries.

These job-creation bills make up the Nebraska Advantage, and were designed to create a business climate that makes Nebraska the preferred location for starting and growing a business. Two of the long-term goals of the package include promoting the growth of existing companies through job retention and new capital investments in communities across the state, and increasing the number of successful startup business ventures.

A major accomplishment of the Nebraska Advantage is the emphasis placed on the contributions made by small businesses to our state economy. A new classification aimed at small businesses will allow companies that make a $1 million investment and create 10 jobs to qualify for tax credits.

Concepts originally proposed as separate bills were incorporated into LB 312 and LB 90 as part of the collaboration including state and local sales tax exemptions for the purchase of manufacturing machinery, equipment and related services. Also included is an expanded commitment to entrepreneurs and companies involved in research and development.

A program directed at micro-enterprise and community development efforts will allow businesses with five or fewer employees that make up to $10,000 in new capital investment in struggling communities to qualify for a tax credit.

Part of my original budget recommendations was the proposal to extend tax incentives to qualified businesses that create two new jobs and invest $125,000 in counties with less than 15,000 residents. I am very pleased we were able to make rural economic development a priority by extending support to many of the small businesses in our smaller counties. This will help ensure small business owners have an opportunity to play a role in the future growth of their communities through investments made in their own business growth.

LB 90 addresses rural development and emphasizes the contributions made by Nebraska’s entrepreneurs, as well as agricultural and value-added industries, including ethanol. I’m pleased we were able to expand our investment in the many ethanol projects going on around the state, and that we’ve done it in a way that will also help support the efforts of local leaders to encourage rural community development for years to come.

It is gratifying to know that these bills address the needs of businesses and communities of every size, from fledgling entrepreneurs to large corporations and manufacturers looking to expand in Nebraska. They will also provide a more equitable playing field for small businesses trying to compete in the global marketplace.

This package is essential to growing Nebraska’s economy. It’s important that Nebraskans understand the hard work and cooperation that went into this package and I want to commend everyone involved for making the future of our state a priority. Each of the components of the Nebraska Advantage will help strengthen our economy through greater investment in businesses of all sizes and the workforce of tomorrow.