LB 355 — Change provisions relating to census data used for certain tax and economic development programs

LB355 LB355 2025 LEGISLATURELEGISLATIVE OFBILL NEBRASKA355 ONEApproved HUNDREDby NINTHthe LEGISLATUREGovernor FIRSTApril SESSION14, LEGISLATIVE2025 BILL 355 FINAL READING   Introduced by Andersen, 49.

Read  firstA timeBILL JanuaryFOR 16,AN 2025ACT Committee:relating to census data;

Revenue A BILL FOR AN ACT relating to census data;

Be it enacted by the people of the State of Nebraska, -1- LB355 LB355 2025 Section 1.

For purposes of this subsection, local dollars received shall mean the total local dues received by a development district from any local government -2- LB355 LB355 2025 as a condition of membership in a development district.

(3)(a) Ten percent of the funds appropriated to a city of the -3- LB355 LB355 2025 metropolitan class under subdivision (2)(a) of this section and all of the funds appropriated to a city of the metropolitan class under subdivision (2)(b) of this section shall be equally distributed to areas with a high concentration of poverty.

Fifty-five percent of such funds shall be used to showcase important historical aspects of such areas or areas within close geographic proximity of -1- LB355 LB355 2025 the area with a high concentration of poverty and to assist with the reduction of street and gang violence in such areas.

(iii) Two residents of the area with a high concentration of -4- LB355 LB355 2025 poverty, appointed by the two members of the committee described in subdivisions (3)(c)(i)(3)(c) (i) and (ii) of this section.

(e) For any committee formed under subdivision (3)(b) of this -5- LB355 LB355 2025 section:

(h) For purposes of this subsection, an area with a high concentration of poverty means an area within the corporate limits of a -6- LB355 LB355 2025 city of the metropolitan class consisting of one or more contiguous census tracts, as determined by the -2- LB355 LB355 2025 most recent American Community Survey 5-Year Estimate federal decennial census, which contain a percentage of persons below the poverty line of greater than thirty percent, and all census tracts contiguous to such tract or tracts , as determined by the most recent federal decennial census.

(5) State assistance to the political subdivision shall no longer be available upon the retirement of the bonds issued to acquire, construct, improve, repair, replace, or equip all of the political subdivision's facilities or any subsequent bonds that refunded the original issue or -7- LB355 LB355 2025 when state assistance reaches the amount determined under subdivision (2)(2)(a) (a) of this section, whichever comes first.

(3) Blighted area means an area (a) which, by reason of the presence of a substantial number of deteriorated or deteriorating structures, -8- LB355 LB355 2025 existence of defective or inadequate street layout, faulty lot layout in relation to size, adequacy, accessibility, or usefulness, insanitary or unsafe conditions, deterioration of site or other improvements, diversity of ownership, tax or special assessment delinquency exceeding the fair value of the land, defective or unusual conditions of title, improper subdivision or obsolete platting, or the existence of conditions which endanger life or property by fire and other causes, or any combination of such factors, substantially impairs or arrests the sound growth of the community, retards the provision of housing accommodations, or constitutes an economic or social liability and is detrimental to the public health, safety, morals, or welfare in its present condition and use and (b) in which there is at least one of the following conditions:

A redevelopment project involving a formerly used defense site as authorized under section 18-2123.01, any area which is located within a good life district established under the Good Life Transformational Projects Act, and any area -3- LB355 LB355 2025 declared to be an extremely blighted area under section 18-2101.02 shall not count towards the percentage limitations contained in this -9- LB355 LB355 2025 subdivision;

and (b) -10- LB355 LB355 2025 the average poverty rate in the area exceeds twenty percent for the total federal census tract or tracts or federal census block group or block groups in the area;

(22) Person means any individual, firm, partnership, limited liability company, corporation, company, association, joint-stock association, or body politic and includes any trustee, receiver, -11- LB355 LB355 2025 assignee, or other similar representative thereof;

(a) To acquire substandard and blighted areas or portions thereof, including lands, structures, or improvements the acquisition of which is necessary or incidental to the proper clearance, development, or -4- LB355 LB355 2025 redevelopment of such substandard and blighted areas;

(b) to clear any such areas by demolition or removal of existing buildings, structures, streets, utilities, or other improvements -12- LB355 LB355 2025 thereon and to install, construct, or reconstruct streets, utilities, parks, playgrounds, public spaces, public parking facilities, sidewalks or moving sidewalks, convention and civic centers, bus stop shelters, lighting, benches or other similar furniture, trash receptacles, shelters, skywalks and pedestrian and vehicular overpasses and underpasses, enhancements to structures in the redevelopment plan area which exceed minimum building and design standards in the community and prevent the recurrence of substandard and blighted conditions, and any other necessary public improvements essential to the preparation of sites for uses in accordance with a redevelopment plan;

and (g) in a rural community or in an extremely blighted area within a -13- LB355 LB355 2025 municipality that is not a rural community, to carry out construction of workforce housing;

-14- LB355 LB355 2025 (d) Owner-occupied and rental housing units for which the cost to substantially rehabilitate exceeds fifty percent of a unit's assessed value;

(i) The average compensation of the taxpayer's employees at the qualified location or locations for each year of the performance period must equal at least one hundred fifty percent of the Nebraska statewide average hourly wage -5- LB355 LB355 2025 for the year of application;

(ii) The taxpayer must offer to its employees who constitute full-full-time time employees as defined and described in section 4980H of the Internal Revenue Code of 1986, as amended, and the regulations for such section, at the qualified location or locations for each year of the performance period, the opportunity to enroll in minimum essential coverage under an eligible employer-sponsoredemployer- sponsored plan, as those terms are defined and described in section 5000A of the Internal Revenue Code of 1986, as amended, and the regulations for such section;

and -15- LB355 LB355 2025 (iii) The taxpayer must offer a sufficient package of benefits as described in subdivision (1)(j) of section 77-6828.

and (v) Tangible personal property by a contractor or repairperson after appointment as a purchasing agent of the taxpayer when such property is both (A) incorporated into real estate at the qualified location or locations and (B) annexed to, but not incorporated into, real estate at -16- LB355 LB355 2025 the qualified location or locations.

-17- LB355 LB355 2025 (4) The taxpayer shall be entitled to one of the following credits for payment of wages to new employees:

(ii) If the taxpayer attains a cumulative investment in qualified property of at least one million dollars and hires at least ten new employees at the qualified location or locations before the end of the ramp-up period and the number of new employees and investment are at a qualified location in a county in Nebraska with a population of one hundred thousand or greater, and at which -6- LB355 LB355 2025 the majority of the business activities conducted are described in subdivision (1)(a) or (1)(n) of section 77-6818, the taxpayer shall be entitled to a credit equal to four percent times the average wage of new employees times the number of new employees.

or (iii) If the taxpayer attains a cumulative investment in qualified property of at least one million dollars and hires at least ten new employees at the qualified location or locations before the end of the ramp-up period and the number of new employees and investment are at a qualified location or locations within one or more counties in Nebraska that each have a population of less than one hundred thousand, and at which the majority of the business activities conducted are described in subdivision (1)(a) or (1)(n) of section 77-6818, the taxpayer shall be entitled to a credit equal to six percent times the average wage of new -18- LB355 LB355 2025 employees times the number of new employees.

The credit shall equal seven percent times the average wage of new employees times the number of new employees if the average wage of the new employees equals at least one hundred fifty -19- LB355 LB355 2025 percent of the Nebraska statewide average hourly wage for the year of application.

Wages in excess of one million dollars paid -20- LB355 LB355 2025 to any one employee during the year shall be excluded from the calculations under this subdivision.

-7- LB355 LB355 2025 (a)(i) If a taxpayer attains a cumulative investment in qualified property of at least one million dollars and hires at least ten new employees at the qualified location or locations before the end of the ramp-up period, the taxpayer shall be entitled to a credit equal to four percent of the investment made in qualified property at the qualified location or locations;

or (iii) If the taxpayer attains a cumulative investment in qualified -21- LB355 LB355 2025 property of at least one million dollars and hires at least ten new employees at the qualified location or locations before the end of the ramp-up period and the number of new employees and investment are at a qualified location or locations within one or more counties in Nebraska that each have a population of less than one hundred thousand, and at which the majority of the business activities conducted are described in subdivision (1)(a) or (1)(n) of section 77-6818, the taxpayer shall be entitled to a credit equal to four percent of the investment made in qualified property at the qualified location or locations unless the cumulative investment exceeds ten million dollars, in which case the taxpayer shall be entitled to a credit equal to seven percent of the investment made in qualified property at the qualified location or locations.

or (d) If a taxpayer attains a cumulative investment in qualified property of at least two hundred fifty thousand dollars but less than one million dollars and hires at least five new employees at the qualified location or locations before the end of the ramp-up period and the number of new employees and investment are at a qualified location within an -22- LB355 LB355 2025 economic redevelopment area, the taxpayer shall be entitled to a credit equal to four percent of the investment made in qualified property at the qualified location or locations.

(b) The credits prescribed in subsection (5) of this section shall -23- LB355 LB355 2025 also be allowable during the first year of the performance period for investment in qualified property at the qualified location or locations after the date of the complete application and before the beginning of the performance period.

(8)(a) Property described in subdivision (8)(c) of this section used at the qualified location or locations, whether purchased or leased, and placed in service by the taxpayer after the date of the complete application, shall -8- LB355 LB355 2025 constitute separate classes of property and are eligible for exemption under the conditions and for the time periods provided in subdivision (8)(b) of this section.

(b) A taxpayer shall receive the exemption of property in subdivision (8)(c)(8) (c) of this section if the taxpayer attains one of the following employment and investment levels:

or (iii) cumulative investment in qualified property of at least two hundred fifty million dollars and the hiring of at least two hundred -24- LB355 LB355 2025 fifty new employees at the qualified location or locations before the end of the ramp-up period.

Such property shall be eligible for the exemption from the first January 1 following the end of the year during which the required levels were exceeded through the ninth December 31 after the first year property included in subdivision (8)(c) of this section qualifies for the exemption, except that for a taxpayer who has filed an application under NAICS code 518210 for Data Processing, Hosting, and Related Services and who files a separate sequential application for the same NAICS code for which the ramp-up period begins with the year immediately after the end of the previous project's performance period or a taxpayer who has a project qualifying under subdivision (1)(b)(ii) of section 77-5725 and who files a separate sequential application for NAICS code 518210 for Data Processing, Hosting, and Related Services for which the ramp-up period begins with the year immediately after the end of the previous project's entitlement period, such property described in subdivision (8)(c)(i) of this section shall be eligible for the exemption from the first January 1 following the placement in service of such property through the ninth December 31 after the year the first claim for exemption is approved.

(ii) Business equipment that is located at a qualified location or locations and that is involved directly in the manufacture or processing of agricultural products, including business equipment used primarily for the capture and compression of carbon dioxide, the manufacturing of liquid fertilizer or any other chemical applied to agricultural crops, or -25- LB355 LB355 2025 the manufacturing of any liquid additive for a farm vehicle fuel if the taxpayer qualifies under subdivision (8)(b)(i) or (8)(b)(ii) of this section;

The fund shall consist of fees credited under this subsection and any other money appropriated to the fund by the -26- LB355 LB355 2025 Legislature.

-9- LB355 LB355 2025 Sec.

77-690677-6906 Economic Economic redevelopment area means an area in the State of Nebraska in which: