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Nebraska State Auditor Mike Foley is scrutinizing the Department of Revenue, saying that millions of dollars in state tax credits are being paid to companies that no longer maintain jobs in Nebraska.In a new letter and an accompanying report, Foley said some businesses receiving benefits under the Nebraska Advantage and ImagiNE Nebraska Act programs have gone bankrupt or moved operations out of state while continuing to collect tax credits funded by Nebraska taxpayers.“It’s almost as if we are begging companies to take unfair advantage of us,” Foley said. “In a strange kind of way, we’re almost creating an incentive for companies to leave our state. They get to leave our state, get tax credits in a new state, and then we’re still paying out our tax credits even when they’re gone.”Foley described a lack of enforcement by the Nebraska Department of Revenue, which administers the programs. “The department is not doing a very good job of going back to those companies periodically and just doing a double check. Are those jobs still here?” Foley said.The Department of Revenue declined to provide new statements to the media Tuesday, instead referring to written responses included in the Foley report. In those responses, the agency said it “will develop a written procedure to ensure consistency” and noted that it is currently following existing statutes. The department also said some of Foley’s recommendations would require changes to state law. “I want to have a sincere conversation with the state senators about what can we do to tweak these tax laws so that those tax credits stay here,” Foley said. State Sen. Brad von Gillern, chair of the Legislature’s Revenue Committee, defended the incentive programs, citing a 2025 report that found a tenfold return on investment for state dollars spent.Sen. von Gillern said he supports closing any gaps there are.“Had the auditor approached me or others prior to the start of session with this information, it certainly would have led to a cleanup bill this session,” von Gillern said in a statement. “Unfortunately that did not happen, so the earliest any changes could take effect would be 2027…. Key business and civic leaders have tied lack of job opportunities, brain drain and slow population growth in Nebraska to our incentive programs which are, by comparison, poor in comparison to peer states. Our programs need to be deepened with the goal of improving their effectiveness and the return on invested state dollars.”Make sure you can always see the latest news, weather, sports and more from KETV NewsWatch 7 on Google Search.NAVIGATE: Home | Weather | Local News | National | Sports | Newscasts on demand |
Nebraska State Auditor Mike Foley is scrutinizing the Department of Revenue, saying that millions of dollars in state tax credits are being paid to companies that no longer maintain jobs in Nebraska.
In a new letter and an accompanying report, Foley said some businesses receiving benefits under the Nebraska Advantage and ImagiNE Nebraska Act programs have gone bankrupt or moved operations out of state while continuing to collect tax credits funded by Nebraska taxpayers.
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“It’s almost as if we are begging companies to take unfair advantage of us,” Foley said. “In a strange kind of way, we’re almost creating an incentive for companies to leave our state. They get to leave our state, get tax credits in a new state, and then we’re still paying out our tax credits even when they’re gone.”
Foley described a lack of enforcement by the Nebraska Department of Revenue, which administers the programs.
“The department is not doing a very good job of going back to those companies periodically and just doing a double check. Are those jobs still here?” Foley said.
The Department of Revenue declined to provide new statements to the media Tuesday, instead referring to written responses included in the Foley report. In those responses, the agency said it “will develop a written procedure to ensure consistency” and noted that it is currently following existing statutes. The department also said some of Foley’s recommendations would require changes to state law.
“I want to have a sincere conversation with the state senators about what can we do to tweak these tax laws so that those tax credits stay here,” Foley said.
State Sen. Brad von Gillern, chair of the Legislature’s Revenue Committee, defended the incentive programs, citing a 2025 report that found a tenfold return on investment for state dollars spent.
Sen. von Gillern said he supports closing any gaps there are.
“Had the auditor approached me or others prior to the start of session with this information, it certainly would have led to a cleanup bill this session,” von Gillern said in a statement. “Unfortunately that did not happen, so the earliest any changes could take effect would be 2027…. Key business and civic leaders have tied lack of job opportunities, brain drain and slow population growth in Nebraska to our incentive programs which are, by comparison, poor in comparison to peer states. Our programs need to be deepened with the goal of improving their effectiveness and the return on invested state dollars.”
Make sure you can always see the latest news, weather, sports and more from KETV NewsWatch 7 on Google Search.
NAVIGATE: Home | Weather | Local News | National | Sports | Newscasts on demand |
