Bills to Grow Lincoln and Nebraska Go Before Committee Hearings

(File photo)

Mega site development, tourism and tax cuts were before various legislative committees at the Unicameral last week with the Lincoln Chamber of Commerce, Visit Lincoln, Lincoln Partnership for Economic Development and other Chamber partners from across the state offering supporting testimony to five bills in particular—LB644, LB709, LB754, LB804 and LB806.

Proposed by Senator Mike McDonnell of Omaha, LB644 would provide the necessary framework for communities throughout the state to develop transformational projects or so-called “mega sites.” The bill would transfer funds to bolster the Site and Building Development Fund, which would include $80 million for 2023-24 and an additional $80 million in 2024-25, with both transfers coming from the state’s $2B Cash Reserve Fund. 

Jason Ball testified on behalf of the Lincoln Chamber, Nebraska Chamber and the Greater Omaha Chamber. His testimony focused on the portions of the bill dealing with investment in a mega site, while several other testifiers from rural areas stressed the importance of the new funds available to them from the Site and Building Development Fund. 

The ability to develop large commercial and industrial sites would help potentially attract incredible investment and employment opportunities in all corners of Nebraska, spanning a variety of industries. With competition for large projects and investment fierce across the globe, the tools required to compete are vital to securing potential projects. Jason Ball relayed to the committee members that, “Site selection is not just a consideration of tax environment. Speed and cost of site access is often the more determinative factor for business. States that have invested in mega site preparation will be much more competitive than those that have not.”

Specifically, Lincoln and Omaha are keen to develop a superfund site in the I-80 corridor, which would take advantage of current existing infrastructure in the corridor and further enhance the ability to compete for transformational projects for our state. Economic development partners from across the state also offered testimony in support of LB644.

Senator Anna Wishart’s proposed LB709 would provide $60 million in one-time spending from the Cash Reserve Fund for a proposed Lincoln Convention Center, in addition to $7 million for existing space improvements at the Lancaster Event Center and $4 million for capital improvements to recreational areas in Lancaster County such as the Branched Oak Observatory and others..

The bill was also co-sponsored by all members of the Lincoln delegation. Supporting testimony included Visit Lincoln’s Executive Director Jeff Maul, Downtown Lincoln Association’s President and CEO Todd Ogden, Randy Bretz from Lincoln Downtown Rotary 14 and others. Visit Lincoln, DLA and Rotary have partnered on a feasibility study to determine the need and desire for a convention center for Lincoln, with Phase II of that study recently released. The Lincoln Young Professionals Group also support the Lincoln Convention and Events Center bill. 

The Convention Center project would continue to be a catalyst for growth in and around Lincoln’s downtown area, providing jobs and additional boosts to local businesses. Jeff Maul told the legislators that,  “Lincoln is currently only meeting about 30 percent of the demand for potential capacity for conferences and a new convention center would help better fill that need from meeting planners and groups that wish to bring their events to the community but currently lack the required space.”

If approved, funding from LB709 would cover a significant portion of the current price tag for a convention center, estimated at between $110 - $120 million according to the Phase II findings from the feasibility study.

A trio of tax cut bills were presented before the Revenue Committee on Thursday, February 2 on behalf of Governor Jim Pillen. The bills would reduce and change individual and corporate income tax rates, continuing the work done with passage of LB873 in the 2022 session that lowered the top corporate and income tax rates to 5.84 percent, phased in by 2027. 

LB754, introduced by Senator Lou Ann Linehan of Elkhorn, would reduce both the state’s top individual and corporate income tax rates to 3.99 percent by 2027. LB804 and LB806 would speed up the tax cuts passed from 2022, employing the 5.84 percent rate beginning in 2023. Those two bills were introduced by Senator Brad von Gillern of Elkhorn.

With states surrounding Nebraska all having lower tax rates, the need exists to remain competitive for businesses and workers. While Nebraska is one of two dozen states to cut their individual tax rates within the last few years, more and more states are making aggressive moves to lower their rates across the board. Nebraska is hopeful to become a top 15 or top 10 state nationally.

“We are Nebraska. We have to get competitive with our tax code and the timing is extremely critical,” noted Governor Pillen during his testimony on Thursday.

Brian Klintworth, local CPA with HBE CPAs and Consultants, testified in support of the governor’s income tax package on behalf of the Lincoln Chamber. 

“Tax rates are really starting to make a difference, especially with the increased mobility that people have to move and work around the country. A bill like this (LB754) would help continue to make positive changes and a more competitive environment for our businesses and our individuals,” Klintworth testified.

All five bills have a common theme; competitiveness. Competitiveness for growing our city and our state through providing individuals and businesses with the means to think big on long-term projects that can have a transformative effect and take advantage of our greatest asset—the people of Nebraska.