Lawmakers hear wide support for strengthening Nebraska's Business Innovation Act

Senator Jason Prokop introduced LB1044, describing the Business Innovation Act as a successful economic development tool that helps early-stage firms move to market. The bill would remove the requirement that the Department of Economic Development's plan be approved by the governor, mandate minimum annual funding for prototype and seed programs (at least $4 million, up to $6 million per program), and include legislative intent for $15 million in annual appropriations beginning in fiscal 2026–27.

Proponents from Invest Nebraska, TechNebraska, chambers, founders and investors described measurable returns from the BIA. Kristen Hassebrooke, an Invest Nebraska board member, cited company outcomes and said predictable funding helps attract private capital. Witnesses repeatedly referenced independent impact analyses (University of Nebraska-Lincoln Bureau of Business Research) and pointed to CompanyCam, which received an early prototype grant and later grew into a company valued at $2 billion, as a case study of program success.

Business groups and startup founders urged stable funding sources and debated the best pay-for mechanism. Senator Prokop said he preferred a dedicated funding source (a 'suit tax' in companion proposals was mentioned elsewhere) and noted that the bill's intent language does not guarantee appropriation but signals legislative priority. Committee members pressed for clarity on fiscal notes and how the proposed funding interacts with related budget and statutory proposals.

Multiple proponents testified to statewide geographic impact across agritech, bioscience, and software sectors, and to job creation and tax revenue return; no neutral or opponent witnesses were present at the hearing, though written opponent submissions were noted. The committee closed the LB1044 hearing and will consider the bill in future committee action.