## Legislative bill overview

LB209 seeks to amend the Nebraska Revised Statutes to include provisions that would allow certain local governments to establish a tax incentive program for the purpose of attracting new businesses and retaining existing ones. The bill outlines criteria for eligibility, the duration of the tax incentives, and the process for local governing bodies to implement these programs.

## Why is this important

The importance of LB209 lies in its potential to stimulate economic growth in Nebraska by providing local governments with tools to create a more favorable business environment. By allowing tax incentives, the bill aims to enhance job creation, incentivize investment, and retain businesses that may otherwise relocate. Moreover, it could help small and medium enterprises compete against larger corporations, thus fostering a diverse economic landscape.

## Potential points of contention

• Concerns over the potential for unequal benefits, where larger companies may disproportionately gain from tax incentives at the expense of smaller businesses.


• Criticism regarding the long-term sustainability of local economies reliant on tax incentives, which may lead to budgetary shortfalls in essential services.


• Debate over the effectiveness of such incentives in actually attracting new businesses versus the cost incurred by local governments.


• Fear of creating a "race to the bottom" among local governments competing for businesses, leading to diminishing returns on tax revenue.