August 20 , 2007
Dear Fellow Nebraskans:
I write this week to share an update on economic development efforts associated with the Nebraska Advantage. I signed the Nebraska Advantage Act into law in 2005 as an update to the state’s business incentive package. Businesses engaging in these incentives will invest more than $4 billion over the next few years and create more than 10,000 jobs.
The goal was to create a business climate that makes Nebraska the preferred location for starting and growing a business, with the end result of creating new jobs in communities across our state. The program took effect at the start of 2006. Since then, 116 businesses have expressed an interest in investing a potential $4 billion in our state over the next several years.
It takes more than the offer of tax credits to stimulate new job creation. Our state continues to attract the attention of businesses looking to expand because of the many wonderful things Nebraska has to offer. The other key component is having a competitive and dynamic business climate. That is the edge the Nebraska Advantage has helped us achieve.
While 55 projects are located in the four-county area of greater Omaha and 18 are in or around Lincoln. The remaining 43 projects will be in communities spread throughout the state.
In small communities, the impact of creating just 10 or 20 jobs can have an enormous impact, but several communities have attracted projects creating jobs comparable to those found in our larger cities. For example, a start-up technology and telecommunications company headquartered in Chadron is creating 77 new jobs. An ethanol plant being built in combination with a larger agri-business development in Aurora will create 100 jobs. And a financial services company located in Scottsbluff is creating another 100 jobs.
In addition to the 116 applications received under the tax credit portion of the Nebraska Advantage, we have received 50 applications from businesses applying to be part of the Rural Advantage. These applications have the potential to add an additional $72 million in investments in rural communities and create 185 new jobs.
Of the more than $4 billion in capital investment, more than half will come in the area of biotechnology. The 26 biotech companies applying for the Nebraska Advantage plan to invest more than $2.67 billion in Nebraska communities and create more than 1,800 jobs. The financial services industry is expected to create the most jobs of any industry so far, with 15 companies responsible for creating more than 3,600 jobs.
The sector with the most projects to date is the manufacturing and processing industry with 51 applications from businesses that hope to create an additional 2,500 jobs in Nebraska. The remaining 24 projects in the telecommunications and other business services category expect to invest more than $844 million in Nebraska and create more than 2,400 jobs.
We are pleased with the progress our state has made recently. Those across the country are thinking about Nebraska in a new light; as a state that’s leading the way in business development. We are committed to continuing efforts to help create an atmosphere that stimulates business and innovation for Nebraska communities.
We know one of the biggest issues for our state and for the young people attending our colleges and universities is the need to create quality jobs here at home. The Nebraska Advantage is a powerful tool that is helping make that a reality.
