NebraskaNebraska law offers large employers credits to retain workers
Approved employers involved in certain large mergers can claim capped wage credits if they keep their headquarters and at least 90 percent of their base-year workers in Nebraska.
What it does
Eligible large employers may claim credits for keeping workers in Nebraska after a qualifying merger or business combination. Approval is required, funding is capped, and employers must keep their headquarters and at least 90 percent of their base-year employees in the state.
Eligible employers may receive grants for site and building improvements tied to keeping or recruiting workers after a qualifying ownership change. Awards are limited to $5 per square foot and $2.5 million in total each fiscal year.
Some smaller cities affected by a sudden company closure or downsizing may receive grants or zero-interest loans to prepare sites and buildings for industrial use. Awards are capped at $2.5 million in total each fiscal year.
Economic development organizations may receive grants to help employers keep workers in Nebraska or move workers to the state after a qualifying ownership change. The program has a $300,000 total limit.
Argument forCredits and grants could help large employers keep workers and help some communities prepare sites after a major company change.
Argument againstEmployers that fall short on job or headquarters promises may have to repay credits with interest, which could make these agreements risky to accept.
More detail
The Director of Economic Development may approve agreements that allow eligible employers to claim wage tax credits. The employer must have at least 3,000 Nebraska employees in the base year and meet the law’s other requirements. The ownership change must involve a merger or combination with an out-of-state company between January 1, 2026, and December 31, 2028. Employers must apply and receive approval, keep their headquarters in Nebraska, and retain at least 90 percent of their base-year employees through the earning and usage periods. Credits equal 5 percent of qualifying pay for retained employees earning at least the statewide average hourly wage for the application year. Credits are subject to a $5 million yearly limit and a $50 million total limit. Applications may be filed from January 1, 2027, through May 31, 2029. Credits are earned during the application year and the next nine years, then claimed during the ten-year period starting January 1, 2031.
The Department of Economic Development may award grants to eligible employers for site and building improvements. The grants support improvements in Nebraska tied to retaining or recruiting employees after a qualifying change in ownership and control. Grants are set at $5 per square foot, with total awards capped at $2.5 million in each fiscal year. The general matching-fund requirement does not apply to these employer grants. The grants cover fiscal years 2027–28 and 2028–29. Eligible improvements may be made during the 24 months before the ownership change through the end of the fiscal year when the grant is received.
The Department of Economic Development may give grants or zero-interest loans to certain cities. A city must be a Nebraska city of the first class with fewer than 50,000 residents and affected by a sudden, significant closure or downsizing of a private-sector entity. Cities may use the help to acquire land, add infrastructure, or prepare large sites and buildings for industrial development. Total grants and loans are capped at $2.5 million in each fiscal year. The general matching-fund requirement does not apply to these awards. The grants and loans cover fiscal years 2026–27 and 2027–28.
The Department of Labor shall establish a grant program for economic development organizations supporting workforce plans. Grants go to economic development organizations that assist employers experiencing a qualifying change in ownership and control. An organization must apply with a plan to help an employer keep employees in Nebraska or move employees to the state. Total grants are capped at $300,000. If funds cannot cover every eligible application, the department must prioritize the plan for the employer with the largest average Nebraska workforce during the ten years before its ownership change. Grants must be awarded within the ten years after the ownership change. Plans cover employee retention or relocation during the seven years after that change.
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Where it stands
- Introduced
- Passed 1st Chamber
- Passed 2nd Chamber
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Apr 17Presented to Governor on April 10, 2026To Governor
- Apr 17Approved by Governor Jim Pillen on April 16, 2026Became Law
- Apr 17Provisions/portions of LB806 amended into LB1165 by AM2504
- Apr 17Provisions/portions of LB1191 amended into LB1165 by AM2504
- Apr 17Provisions/portions of LB1192 amended into LB1165 by AM2504
- Apr 10Conrad FA942 withdrawn
- Vote recorded Passed on Final Reading with Emergency Clause 42-7-0. Result: pass.Legislature
- Apr 10Conrad FA943 withdrawn
- Apr 10Dispensing of reading at large approved
- Apr 10Passed on Final Reading with Emergency Clause 42-7-0Passed 2nd Chamber
- Apr 10President/Speaker signedPassed 1st Chamber
- Apr 8Placed on Final Reading with ST97Minor
- Apr 8Enrollment and Review ST97 filedMinor
- Apr 8Enrollment and Review ST97 recorded
- Apr 7Enrollment and Review ER170 adopted
- Vote recorded von Gillern AM3035 adopted. Result: pass.Legislature
- Vote recorded Conrad AM3117 lost. Result: fail.Legislature
- Apr 7Conrad MO382 withdrawn
- Apr 7Conrad MO381 withdrawn
- Apr 7Conrad MO383 withdrawn
- Apr 7No objections to unanimous consent request to withdraw and substitute amendment
- Apr 7Kauth FA825 withdrawn
- Apr 7von Gillern AM3035 filedMinor
- Apr 7von Gillern AM3035 adopted
- Apr 7Conrad FA940 withdrawn
- Apr 7Conrad FA941 withdrawn
- Apr 7Conrad MO384 withdrawn
- Apr 7Conrad AM3117 filedMinor
- Apr 7Conrad AM3117 lost
- Apr 7Advanced to Enrollment and Review for Engrossment
- Mar 30Placed on Select File with ER170Minor
- Mar 30Enrollment and Review ER170 filedMinor
- Mar 24Conrad MO379 pending
- Vote recorded Conrad AM2879 lost. Result: fail.Legislature
- Vote recorded Advanced to Enrollment and Review Initial. Result: pass.Legislature
- Vote recorded Conrad MO379 failed. Result: fail.Legislature
- Vote recorded Conrad AM2881 lost. Result: fail.Legislature
- Vote recorded Conrad MO380 failed. Result: fail.Legislature
- Vote recorded Revenue AM2504 adopted. Result: pass.Legislature
- Mar 24Conrad MO379 failed
- Mar 24Conrad MO380 pending
- Mar 24Revenue AM2504 pending
- Mar 24Conrad MO380 pending
- Mar 24Revenue AM2504 pending
- Mar 24Conrad MO380 failed
- Mar 24von Gillern FA1081 withdrawn
- Mar 24von Gillern FA1082 withdrawn
- Mar 24Conrad AM2881 lost
- Mar 24Revenue AM2504 pending
- Mar 24Conrad AM2879 lost
- Mar 24Revenue AM2504 adopted
- Mar 24von Gillern AM2016 withdrawn
- Mar 24Conrad AM2878 withdrawn
- Mar 24Conrad AM2877 withdrawn
- Mar 24Advanced to Enrollment and Review Initial
- Mar 23Conrad AM2881 to AM2504 filedMinor
- Mar 23Conrad AM2878 to AM2504 filedMinor
- Mar 23Conrad AM2879 to AM2504 filedMinor
- Mar 23Conrad AM2877 filedMinor
- Mar 20von Gillern FA1081 to AM2504 filedMinor
- Mar 20von Gillern FA1082 to AM2504 filedMinor
- Mar 19Placed on General File with AM2504Minor
- Mar 19Revenue AM2504 filedMinor
- Feb 24von Gillern AM2016 filedMinor
- Feb 18von Gillern priority bill
- Feb 12Notice of hearing for February 25, 2026
- Feb 6Ibach name added
- Jan 29Conrad FA940 filedMinor
- Jan 29Conrad FA941 filedMinor
- Jan 29Conrad FA942 filedMinor
- Jan 29Conrad FA943 filedMinor
- Jan 29Conrad MO379 Indefinitely postpone pursuant to Rule 6, Sec. 3(f) filedMinor
- Jan 29Conrad MO380 Bracket until April 17, 2026 filedMinor
- Jan 29Conrad MO381 Recommit to the Revenue Committee filedMinor
- Jan 29Conrad MO382 Bracket until April 17, 2026 filedMinor
- Jan 29Conrad MO383 Recommit to the Revenue Committee filedMinor
- Jan 29Conrad MO384 Indefinitely postpone filedMinor
- Jan 22Referred to Revenue CommitteeMinor
- Jan 21Kauth FA825 filedMinor
- Jan 20Date of introductionIntroduced
Economy & JobsTaxes & Budget