Business Facilities - August 2008 - (Page 34)

FEATURE STORY By Brian Donahue Building an Economic Force on the Great Plains Governor Dave Heineman takes a hands-on approach to economic development as the biggest booster for the Nebraska Advantage. “Nebraska is open forbusiness,” says Gov. Dave Heineman. T hey call it the Nebraska Advantage. And if there is any question whether the label fits this multi-incentive program, consider this: since January 2006, more than 150 companies building new facilities or expanding in the state have applied for these tax credits and exemptions, investing $4.86 billion and creating 13,541 jobs. The Advantage program includes tiers of performance-based tax breaks, job training programs and research grants for companies seeking to build in Nebraska; it also facilitates international investment. The program stands at the center of Governor Dave Heineman’s efforts to grow the state’s economy, built largely around agriculture, insurance and biotechnology. Since taking office in 2005, Gov. Heineman has made economic vitality a top priority in Nebraska. In an interview with Business Facilities, he discussed his initiatives, which have enabled the state to thrive in the midst AUGUST 2008 of a national economic downturn. Heineman says the state’s economic development program complements two of Nebraska’s biggest assets: a great quality of life and a dedicated workforce. The governor, known for his hands-on approach to ushering in new business, has made it a priority to get his message out to CEOs. “Our people are our greatest asset in terms of their work ethic, their dedication and their commitment to the company they work for,” Heineman says. “We combine that with an increasingly competitive tax environment, lower tax rates and expanding economic incentives. We also [focus] on low energy costs and an ability to move quickly to help [companies] locate here. We continue to grow every single day.” When he put his signature on the Nebraska Advantage, the governor sought, in part, to promote the growth of existing companies through new capital investments and to increase the number of successful start-up business ventures. The incentives portion of the package provides performance-based tax breaks to businesses, based on six tiers that relate to capital investment and job creation. On the lowest tier, businesses creating 10 new jobs and investing $1 million in capital are eligible for a refund of half the sales tax paid for qualified capital purchases on the project; a full sliding-scale wage credit of up to six percent (depending on wage level); and a three percent investment tax credit. More jobs and higher capital investments qualify companies for higher tiers, which can result in full sales tax refunds on capital purchases and higher investment tax credits. Paypal, Kawasaki and Verizon were among the early entrants into the program. More recent examples are Assurity Life Insurance Co., which is planning to build a $32million headquarters in Lincoln’s Antelope Valley, and Novozymes, which will build a $100-million 34 PHOTO CREDIT: NEBRASKA ADVANTAGE

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Business Facilities - August 2008 Contents First Word Snapshots Corporate Moves: Florida Economic Development 2.0 Everything's Big in Texas Aerospace Sites: Poised for Takeoff The Nebraska Advantage Metro Spotlight: Cullman, Alabama Special Focus: Louisiana Industry Focus: Financial Centers Advertiser Index Inside LiveXChange

Business Facilities - August 2008

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