Nebraska Government Expands Tax Credit for R&D at Universities, Requests Biotech Plan

During the last week of the legislative session, Nebraska Gov. Dave Heineman signed two bills into law - one dealing with R&D tax credits and the other authorizing the development of a statewide biotechnology strategic plan. The biotech plan, as outlined in LB 246, calls for the creation of a nonprofit corporation to provide research assistance and recommendations to the Legislature's Natural Resources Committee by June 30 of next year. A finalized plan must then be presented by the committee to the Legislature.

LB 555 maintains the state's R&D tax credit for companies at 15 percent of the federal R&D tax credit, but raises the state credit to 35 percent of the federal credit if a company's research activities take place on the campus or any other facility owned by a Nebraska college or university. While the bill as introduced in January doubled the tax credit across the state regardless if a company engaged a postsecondary institution, the amended and signed version did not. The law is designed to improve university-based collaborative research, especially at university owned research parks such as the new Nebraska Innovation Campus (see the April 30, 2008 issue of the Digest).

Details on changes to Nebraska's R&D tax credit, including estimates on the effect to the state's general fund, are available at: http://nebraskalegislature.gov/bills/view_bill.php?DocumentID=6869.