Senate proposal would bar Imagine Nebraska credits for ICE contractors; sponsor cites program oversight concerns

Summary

Sen. Megan Hunt told the Revenue Committee LB1150 would prevent new Imagine Nebraska tax credits from going to businesses that contract with ICE, arguing eligibility choices should reflect public priorities as the state faces budget shortfalls; testimony was largely introductory and the bill was heard with proponent letters.

Senator Megan Hunt introduced LB1150, a forward‑facing bill that would prohibit new Imagine Nebraska tax incentives from being awarded to businesses that contract with U.S. Immigration and Customs Enforcement (ICE). Hunt said the bill does not attempt to restrict ICE’s presence or activities in Nebraska but is intended to allow lawmakers discretion over which private actors the state subsidizes.

Hunt referenced audit findings from State Auditor Foley that raised concerns about how Imagine Nebraska and Nebraska Advantage incentives have been implemented; she said the two programs contributed to roughly $1.2 billion in lost state and local tax revenue over a recent four‑year period and that some companies have received incentives despite closing or uninvesting in Nebraska operations.

At the hearing there were multiple proponent letters and one opponent letter on record; no in‑person opponents or neutral testifiers appeared. Committee members did not move the bill to a vote at the hearing.

Sponsor closing emphasized the bill’s prospective, limited scope and framed it as a transparency and accountability measure for state subsidies.