Gov. Heineman Announces New
Economic Incentive Proposal for 2008 Session
Nebraska Super Advantage will aid in business recruitment

(Lincoln, NE) Governor Dave Heineman today announced the Nebraska Super Advantage, a new legislative proposal that will help Nebraska take the next step in advancing economic development and business recruitment efforts across the state.

“I’m proposing we take a quantum leap forward in our efforts to create quality jobs in Nebraska by creating a new tier of incentives that encourage companies to bring higher-paying jobs here to our state,” said Gov. Heineman.

The proposal would modify the state’s existing set of business incentives, known as the Nebraska Advantage. The Nebraska Super Advantage is focused on attracting companies capable of creating higher-paying jobs in the state. The Governor’s proposal would add a new tier to the five tiers that comprise the current Nebraska Advantage.

The new tier would provide tax incentives to businesses creating new jobs that pay at least 150 percent of the state average wage or 200 percent of the average wage in the county where the business is located, whichever is greatest. According to the Nebraska Department of Labor, the state average wage is $33,800. A company would have to create jobs paying at least $50,700 to meet the 150 percent threshold.

In addition to creating higher-paying jobs, companies would need to create at least 75 new jobs in an industry other than retail and would be required to make a $10 million investment in capital.

Gov. Heineman said, “The reason the Nebraska Advantage has been so successful in jump-starting new business development is due to the focus we’ve placed on new job creation. Companies creating jobs that encourage young people to remain in our state are key to our future, and this proposal takes that idea one step further. We want to attract businesses that offer dynamic careers for our college graduates.”

Qualifying businesses would be eligible to receive a 15 percent investment tax credit and a 10 percent wage credit, in addition to sales tax refunds on purchases associated with expansion and a 10 year exemption on personal property. The program will be administered by the Nebraska Department of Revenue.

Tax Commissioner Doug Ewald said, “This proposal provides attractive but reasonable incentives to help companies do business in Nebraska. It also gives businesses greater flexibility in utilizing the incentives contained in the Nebraska Super Advantage.”

Senator Ray Janssen of Nickerson, Chairman of the Legislature’s Revenue Com mittee, will introduce the legislation on behalf of the Governor.

Sen. Janssen said, “This legislation will provide us with another tool to increase the number of good paying jobs in Nebraska. Over the next couple of months, I plan to work with my fellow senators to pass this important legislation.”

Passed during the 2005 legislative session, the goal of the Nebraska Advantage was to create a business climate making Nebraska the preferred location for starting or growing a business.

Since taking effect in 2006, 138 companies have planned to locate or expand in Nebraska. These businesses are expected to invest more than $4.6 billion in the state economy and create more than 12,000 new jobs in the years ahead.

The long-term goals of the package include promoting the growth of existing companies through job retention, expansion and new capital investments, increasing the number of successful new business ventures in the state and fostering the development of new products and ideas.

Gov. Heineman said, “We hope expansion of the Nebraska Advantage will appeal to businesses interested in the well-educated and highly-trained workforce Nebraska has to offer, while also helping our state compete for twenty-first century jobs.”

Nebraska Super Advantage Wages (PDF 119k)
Nebraska Super Advantage Breakdown (PDF 132k)
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