Bill > LB649

This bill adopts the Defense Efforts Workforce Act, which aims to provide incentives for employers in defense-related industries to locate and expand their workforce in Nebraska. The bill establishes a wage credit program for qualified employers who are defense contractors and meet specific employment and wage requirements. To qualify, employers must hire at least ten full-time employees in Nebraska, pay wages at least 150% of the state's average hourly wage, and exclusively support military defense efforts. The wage credit equals 5% of total compensation paid to qualified employees, with a maximum annual credit of $4 million per employer and a total program cap of $40 million. Employers must apply through the Tax Commissioner, who will review applications and enter into agreements with qualifying companies. The program includes detailed provisions for maintaining employment levels, potential credit recapture if requirements are not met, and rules for credit transferability. The bill also mandates annual reporting to the Legislature about participating companies and credit usage. The act will become operative on July 1, 2027, and is designed to foster growth in defense-related workforce and technologies in Nebraska.

Budget and Finance

Revenue Committee (L)

https://nebraskalegislature.gov/bills/view_bill.php?DocumentID=59698