WHAT IF A STATE GOVERNMENT DID WHAT NO PRIVATE company could legally do—refuse to honor a binding contract after you had fully performed your obligations? That is exactly what Nebraska has now positioned itself to do under LB 644, a new law that adds a new, retroactive, unilateral condition to existing tax incentive contracts between the state and hundreds of Nebraska employers. STATE TAX BRIEFING THE IMPACT OF LB 644 ON EXISTING INCENTIVE CONTRACTS—AND WHAT TO DO NEXT BY NICK NIEMANN & MATT OTTEMANN, MCGRATH NORTH LAW FIRM These incentive contracts—such as under the Nebraska Advantage Act and the Imagine Nebraska Act—promise that if companies invest and/or create jobs, at designated levels, the state will provide very specific, well-defined tax credits, exemptions, and refunds. Many Nebraska employers have already met those commitments or are in the process of meeting these requirements in reliance on the incentives. Yet under LB 644, the Nebraska Department 16 Nebraska CPA
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