Nebraska senators advance LB 1165 after hours of debate over $ incentives and oversight

Lincoln — After several hours of floor debate that split senators along policy and fiscal lines, the Nebraska Legislature voted to advance LB 11-65, a comprehensive package that modifies the Imagine Nebraska and related incentive programs, to E & R Initial.

Senator Ron Von Gilloran, the bill'9s sponsor, told colleagues the measure is designed to "protect and grow our good life" by retaining and attracting large employers. He said the measure ties benefits to multi-year performance: eligible applicants must employ at least 3,000 workers, retain 90% of those employees, hire at least 500 additional full‑time workers and pay an average annual wage of about $100,000 for those hires, with retention requirements lasting 10 years. Von Gilloran also said wage-retention tax credits in the proposal amount to roughly $5 million per year over a 10-year window and that some credits would not be usable until years after they are earned, which he said improves fiscal safeguards.

The bill also expands use of the site-and-building development fund to provide capital-improvement grants at roughly $5 per square foot (sponsors estimate a program cap of about $5 million in certain cases) and directs the Department of Labor to create a workforce grant to support retention and relocation. Von Gilloran said the package includes stronger audit and clawback features than previous incentive laws.

Opponents called the package bad policy and poorly timed. Senator Carol Conrad led a priority motion to indefinitely postpone the bill, arguing the bill "creates a closed class" tailored to a single private firm and violates the state constitution'9s ban on special legislation. Conrad and other opponents pressed the fiscal argument: at a moment when the state is confronting what they described as a near‑billion‑dollar structural shortfall and has made cuts to social services, they said the state should not be authorizing large payouts or transfers to private entities. "This is a $50 million sweetheart deal," Conrad said on the floor, calling for recorded votes on amendments that would strike specific appropriations to relocation or renovation grants.

Supporters replied that the incentives are performance-based and that the bill was built to ensure companies cannot collect credits without meeting strict criteria. Senator John Jacobson called the plan "self-funding," arguing that the state would receive payroll, sales and property tax revenue from the new employment before any credits are applied. Several senators said the bill aims to preserve headquarters and thousands of jobs already at risk in a competitive interstate environment.

Floor action included multiple amendment votes. Senators debated and rejected a proposal to strip a $300,000 grant program designed for relocation/"white‑glove" assistance, and another offered amendment to remove a $5 million site-and-building fund transfer. The committee amendment (AM2504) was adopted by the Legislature (34 ayes, 3 nays).

A separate roll call on Senator Conrad'9s priority motion to indefinitely postpone the bill failed earlier in the day (6 ayes, 27 nays). After final debate, the full chamber voted to advance LB 11-65 to E & R Initial; the clerk recorded the advancement vote as 38 ayes and 3 nays.

Votes at a glance
- LB 11-65 (as amended by AM2504) — committee amendment adopted; advanced to E & R Initial (advancement vote: 38 ayes, 3 nays).
- LB 1029 — advanced to E & R Initial (26 ayes, 2 nays).
- LB 764 — advanced to E & R Initial (34 ayes, 0 nays).
- LB 1057 — advanced to E & R Initial (43 ayes, 0 nays).
- LB 852 — advanced to E & R Initial (44 ayes, 0 nays).

What changed and what'9s next
AM2504 modifies eligibility, clarifies reporting and oversight requirements, and adds workforce-focused grant language; sponsors said the measure tightens utilization and audit rules compared with prior versions of Nebraska'9s incentive statutes. Proponents said the bill will return more in payroll and tax revenue than the state spends over time; opponents said the long-term fiscal exposure and the timing amid cuts to services are unacceptable. The bill now moves to the next procedural stage (E & R Initial and later Select File), where senators said they expect continued technical edits and another fiscal note.

Key quotes
"It's about people, jobs and communities ... it's about being competitive in the 50-state marketplace," Senator Ron Von Gilloran said in his opening remarks in support of LB 11-65.
"We're being asked to authorize a $50 million corporate-welfare sweetheart deal," Senator Conrad said in opposition, citing budget cuts to veterans and disability services.

The Legislature adjourned for the day and will resume the session at its next scheduled time.