This past week, the Legislature’s budget work continued to dominate the broader policy environment, but attention is also turning to several economic competitiveness measures that could shape Nebraska’s long-term growth trajectory. As lawmakers work to close the current budget gap, it remains important that the state not lose sight of policies that influence business investment, talent attraction, and Nebraska’s ability to compete for high-impact opportunities. That is especially true with LB1165, which is expected to be taken up on General File in the coming week. For the Greater Omaha Chamber, the bill remains the most significant economic development proposal of the session because it is aimed at giving Nebraska more flexibility to retain major employers, compete for transformational job growth, and strengthen the tools used to attract both investment and workforce talent.
LB1165 – Grow the Good Life Act General File Consideration
LB1165 advanced from the Revenue Committee on a 7-0 vote, with one senator absent, and is expected to be considered on General File first round debate this upcoming week. At its core, LB1165 is about giving Nebraska a stronger set of tools to compete for major economic opportunities at a time when other states are moving aggressively. As discussed in our economic growth agenda, Omaha COMPETES, Nebraska is not just competing for routine growth; it is competing for the kind of large-scale, high-wage, primary job opportunities that can reshape a regional economy and generate long-term ripple effects across housing, retail, services, suppliers, and the broader tax base. The Greater Omaha Chamber continues to view this bill as a strategic response to that reality and as an important part of maintaining Nebraska’s competitiveness for major employers, capital investment, and talent.
As amended, LB1165 uses several tools to strengthen Nebraska’s economic competitiveness. It creates a targeted wage retention credit for qualifying employers undergoing a change in ownership or control, structured at 5% of compensation paid and capped at $5 million annually and $50 million overall. The bill also includes application, reporting, and recapture provisions to ensure accountability. In practical terms, that gives Nebraska another tool to help retain major in-state employment during large corporate transitions.
The bill also updates the ImagiNE Nebraska Act by increasing certain wage and investment credit levels and refining eligibility tied to major post-merger job growth. It further expands the child care credit so support can apply more broadly to employee child care costs, rather than only child care located at a project site. Together, those changes are intended to make Nebraska’s incentive structure more competitive while better reflecting workforce needs.
In addition, LB1165 includes provisions focused on site readiness and workforce recruitment, including greater flexibility for qualifying capital improvement grants under the Site and Building Development Act and a Department of Labor grant program for qualifying employers. Taken together, the bill reflects a broader view of competitiveness: retaining and attracting major employers depends not only on tax policy, but also on whether Nebraska has the tools to support project readiness, workforce growth, and business retention.
From the Greater Omaha Chamber’s perspective, that broader framework is why LB1165 continues to the top priority of this session. This is not simply a technical incentives bill. It is a bill about whether Nebraska is prepared to compete for rare, high-density job opportunities and whether the state is willing to act with the kind of urgency those opportunities require. As debate moves to General File, the Chamber will continue to support LB1165 as a strategic investment in job creation, economic competitiveness, and long-term prosperity for Nebraska.
Just as important, strengthening Nebraska’s competitiveness is also part of strengthening the state’s long-term fiscal position; an Aksarben Foundation analysis from last fall found that if Omaha and Lincoln had kept pace with peer metros on job growth over the last five years, Nebraska could have generated between $600 million and $800 million in additional state tax revenue.
Budget Process
The Legislature’s budget work continued this week, though not without some procedural complications as senators worked through the next phase of debate. On Thursday, lawmakers advanced LB1072, the cash funds transfer bill, on a 35-12 vote after adopting an amendment that reduced the remaining budget shortfall by an additional $83.2 million. That action brought the projected deficit down from roughly $125 million to about $41.8 million, reflecting continued progress as senators work toward a constitutionally required balanced budget.
At the same time, the Legislature was unable to advance LB1071, the main budget adjustment bill, during second-round debate. Senators fell short of the votes needed to cease debate and move the bill forward, leaving LB1071 temporarily stalled as lawmakers continue discussions on unresolved issues within the package. Speaker John Arch indicated the bill will return to the agenda Monday, underscoring that while this year’s process has been more difficult and at times more procedural than usual, the Legislature’s work on the budget is continuing and further negotiations are expected in the days ahead.
Much of Thursday’s discussion centered on the challenge of assembling enough support for the full budget package while also making progress on individual components. LB1072 moved forward with additional cash fund transfers and other adjustments designed to further narrow the shortfall.
As the Legislature continues this process, the Greater Omaha Chamber remains focused on the importance of resolving the state’s budget challenge in a way that maintains confidence in Nebraska’s long-term economic outlook. The Chamber continues to believe Nebraska should not balance its budget by stepping away from the income tax reforms enacted under LB754. For employers, investors, and growing businesses, that multi-year tax policy is already part of long-term planning. Preserving a predictable and competitive tax environment remains important to business confidence, capital investment, and Nebraska’s ability to compete for jobs and growth in the years ahead.
You’re Invited – Upcoming Events
If you’d like to hear more about these bills, and other legislation we are monitoring, our next In the Legislative Loop series of Zoom briefings is Monday, March 23rd at 11:30 a.m. This members-only, biweekly Zoom call provides a 30-minute update on the latest developments from the State Capitol. It will include behind-the-scenes insights from the session as well as a look ahead at key issues coming before the Legislature. You can sign up for the biweekly series here.
While your Greater Omaha Chamber Public Policy team continues its work at the State Capitol advocating for a stronger business climate and advancing the Omaha COMPETES agenda, we encourage you to share your insights on state legislative priorities at advocacy@omahachamber.org.
Jennifer Creager
Senior Vice President, Public Policy
808 Conagra Dr., Ste. 400, Omaha, NE 68102
Lincoln Office: 402-474-4960
For more information, visit our Public Policy page or contact Jennifer Creager at 402.474.4960.
You can read the Legislature’s Update to learn more about the happenings in Lincoln.