Senate revenue committee hears bill to allow recalculation of Nebraska Advantage base-year employees
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Summary
Senators heard testimony on LB 954, which would let the Department of Revenue recalculate base-year employees for Tier 6 Nebraska Advantage participants after a partial sale of operations if the jobs remain in Nebraska for at least two years; BD and local economic development representatives supported the change.
Senator Brad Von Gilling, chair of the Revenue Committee, introduced LB 954, saying it would allow the Department of Revenue to recalculate the number of base-year employees for Tier 6 Nebraska Advantage participants when a portion of operations is sold to a separate entity and the jobs remain in Nebraska for at least two years. "LB-954 would allow recalculation of the number of base year employees, though only under very narrow and reasonable circumstances," Von Gilling told the committee.
The primary proponent, Lori Reagan, plant manager for BD's North American Molding Center in Columbus, testified that BD spun off its diabetes care business in 2022, transferring roughly 500 associates while keeping operations and related jobs in Nebraska. Reagan said the company initially applied for Tier 6 incentives in 2018 as part of a $200,000,000 investment and later announced about a $150,000,000 investment. "LB 954 makes common sense technical updates to the Nebraska Advantage Act to account for exactly this type of situation where a corporate transaction changes the structure on paper, but not the real economic activity," Reagan said.
Senator Dave Mermin asked about employee counts since 2016. Reagan answered that excluding the spun-off Holdridge facility of roughly 500 employees, BD's Nebraska workforce rose by about 300 since 2018, from roughly 2,300 to about 2,600. Committee members also discussed the fiscal-note language; one member noted a $20,000,000 figure in fiscal-note notes as a long-term payout. Senator Von Gilling clarified that the incentives in question were already budgeted and awarded and said the Advantage program already contains clawback provisions if operations cease within 24 months of a sale.
Supporters characterized LB 954 as a narrow, technical fix to avoid penalizing companies that preserve jobs in Nebraska through corporate reorganizations. No opponents testified at the hearing, and Senator Von Gilling closed the session without a committee vote recorded in the hearing.
