Nebraska Legislative Update………..
- The 106th Nebraska Legislature’s 90-day session adjourned Sine Die on May 31st, 2019.
- Of the 739 bills introduced, the Legislature passed 294 into law. The legislature passed a $9.3B biennial budget and it did NOT pass the ImagiNE Nebraska/business incentive legislation (LB720).
- The next Nebraska Legislative session, which begins January 2020 and adjourns April 2020. This short session occurs in the middle of a biennial, two-year period, and does not require budget appropriations, therefor it is allotted a ‘short-session’ timetable.
For additional information about the legislative session, please go to the Nebraska Legislature link at http://www.nebraskalegislature.gov/.
ImagiNE Nebraska (LB 720) received first-round approval (37-8), but failed to advance a second time, after an unsuccessful cloture vote 30-18 (33 votes needed to stop filibuster). With both primary property tax bills falling short, the common thread was that, without property tax relief, some in the legislative body would withhold votes for new business incentive legislation. The bill (LB720) will remain on Select File through the 2020 legislative session.
The Business Innovation Act, under LB334, was appropriated an additional $4 million, to further fund programs under the Business Innovation Act. The additional funding was reallocated from the Angel Investment Tax Credit, which was eliminated.
Economic Development around the Country……….
Allstate is continuing its expansion in Texas. Allstate Insurance Co. plans to hire 1,300 new employees and invest $11 million over the next five years, in a major ramp-up at its Irving campus operations. The Company, which has a campus on the northwest side of DFW International Airport, has in excess of 1500 employees. The Company is a recipient of the Texas Enterprise Fund, the state’s primary business incentive fund.
Covance Central Laboratory Services Inc., a subsidiary of Laboratory Corp. of America, is planning a $17.5 million expansion and renovation project at its facilities in Indianapolis that is expected to create 203 jobs. Covance plans to renovate 20,000 square feet of the facility into a state-of-the-art two-story testing laboratory for clinical trials and add a 10,000-square-foot addition for subzero cold storage.
The Michigan Strategic Fund board, in May, approved state incentives including $55 million for land assembly for Fiat Chrysler Automobiles NV’s proposed $2.5-billion plant expansion. Fiat Chrysler’s plans are to invest $1.6 billion in expanding its Mack Avenue facilities with a new plant and investing $900 million to modernize its Jefferson North Assembly Plant. The plant expansion is expected to add 4,950 jobs.
Greenheck announced that it will expand its manufacturing facilities in Shelby, North Carolina. The company will invest $60 million and create 200+ new manufacturing jobs over the next five years. The expansion plans include the purchase of an existing manufacturing facility and construction of a new Architectural Products facility on the Shelby campus.
Merck, a healthcare and pharmaceutical manufacturer, will be investing $1 billion and adding almost 100 jobs over the next three years in Rockingham County, Virginia. The expansion will add approximately 120,000 square feet to its existing 1.1 million-square-foot facility, allowing capacity/production increases of its Human Papillomavirus vaccines.
Prysmian Group announced it would invest $2.8 million and create 12 new jobs to expand its facility in Paragould, Arkansas. The plant is a Tier 2 automotive supplier manufacturing copper wire and cable products.
Texas El Paso’s economic development has had multiple-recent wins with expansions announced by Eaton Corp (manufacturer of electrical, hydraulic and automotive parts and systems), Foster Electric (Japan-based manufacturer of auto accessories) and Technimark. Technimark, a North Carolina company, plans to expand its current medical-device manufacturing plant, already in El Paso, by another 104 jobs.