McCOOK, NEB. (July 15, 2005)—Gov. Dave Heineman lifted a burden from the backs of Nebraska’s manufacturers when he signed into law the Nebraska Advantage Act, eliminating the sales tax on manufacturing equipment and machinery. This tax relief, implemented by very few other states, helps create the kind of business climate that makes Nebraska the preferred location for starting or growing a business.

“Despite the reliable strength of Nebraska’s workforce, our manufacturers have had to overcome an unfair advantage enjoyed by many of their competitors in neighboring states,” Gov. Heineman said. “It is time we helped our manufacturers compete on more even footing, and the Nebraska Advantage accomplishes that aim.”

Gov. Heineman was at Parker Hannifin in McCook today as part of his promotional tour to convey the many benefits that the new Nebraska Advantage package offers business and industry. The long-term goals of the package are to promote growth of existing companies through job retention and new capital investments; to increase the number of successful startup business ventures in the state; to foster the commercialization of new products and ideas; and to recognize the different needs of Nebraska's diverse industries.

“Business and industry are keys to the growth of our state. Over the years, Parker, the employees of Parker and our community have benefited from the economic and industrial development initiatives in Nebraska. We appreciate the Governor's and the Legislature’s support of the development of business and industry,” David Lee, Parker Hannifin plant manager, said. “With annual sales approaching $8 billion, Parker Hannifin is the world’s leading diversified manufacturer of motion and control technologies and systems, providing precision-engineered solutions for a wide variety of commercial, mobile, industrial and aerospace markets. The company employs more than 48,000 people in 46 countries around the world.”

One component of the Nebraska Advantage jobs-creation package provides for a statewide exemption of manufacturing machinery, equipment, and related services from local or state sales tax assessment. First proposed by Senator Tom Baker, District 44, the package definition of manufacturing machinery, equipment, and services includes: equipment for transporting raw materials or components, molds and dies for forming cast or injected products or its packaging materials, machinery to maintain the integrity of a product or environmental conditions, testing equipment for quality control, computers that control a manufacturing process, machinery used to produce steam, electricity, catalysts and solutions, repair or replacement of parts, and all installation, repair and maintenance service performed on such equipment.

In addition to the tax exemption on manufacturing equipment and machinery, the overall Nebraska Advantage package targets a wide-ranging list of businesses and industries, and provides tax credits equal to 3% for qualifying businesses conducting R&D activities; tax credits for businesses with five or fewer employees that make up to $10,000 new investment in economically challenged areas; a separate tier for qualified businesses (non-retail/local service businesses) with refundable tax incentives for projects that create two new jobs and invest $125,000 in counties with less than 15,000 residents; and the package classifies tele-workers as new employees.

Gov. Heineman also signed into law $15 million for job training, providing a flexible, discretionary custom job training program to help ensure that the state’s workforce is prepared for advances in rapidly changing industries.

Also incorporated into the structure of the Nebraska Advantage package, is the Rural Development package with the Nebraska Agriculture Innovation Advantage and Building Entrepreneurial Communities.

“Each of these components will help keep Nebraska’s economy strong through greater investment in businesses of all sizes, and in the workforce of tomorrow,” Gov. Heineman said.

The Nebraska Department of Economic Development administers the Nebraska Advantage package.

For more info contact:

Richard Baier, 402-471-3747