Bill > LB699

This bill modifies the sales and use tax incentives under the ImagiNE Nebraska Act by clarifying tax refund procedures for contractors working on qualified projects. Specifically, the bill addresses how contractors who have elected to be taxed as consumers of building materials can handle sales and use tax payments. If a contractor has already paid sales tax on materials, they must certify the amount paid to the taxpayer, who can then receive a refund as if the taxes were originally incurred by them. If a contractor has not paid sales tax, their purchases will be exempt from taxes as if the purchases were made directly by the taxpayer. The bill maintains the existing framework of the ImagiNE Nebraska Act, which provides tax incentives to businesses that make significant investments in qualified property and create new jobs in Nebraska, with varying levels of benefits based on the amount of investment and number of employees hired. These incentives include sales tax refunds, property tax exemptions, and wage credits that increase with higher levels of investment and employee compensation. The changes aim to streamline the tax refund process for contractors working on qualifying projects and provide additional clarity to businesses seeking to take advantage of the state's economic development incentives.

Budget and Finance

https://nebraskalegislature.gov/bills/view_bill.php?DocumentID=59801