Companies expanding in Nebraska now have more “advantages” to choose from

LB895, passed by the Legislature and signed by Gov. Dave Heineman earlier this year, adds another tier to the successful Nebraska Advantage package of incentives for businesses that relocate to or expand in the state. Businesses will qualify for the Super Advantage if they invest $10 million while creating 75 jobs paying either 200% of a county’s average wage or 150% of the state’s average wage, whichever is greater. Businesses also will qualify if they invest $100 million capital investment while creating 50 jobs at the thresholds stated above.

These wages range from $50,700 (160% of State’s average annual wage) to $91,972 (200% of Stanton County’s average annual wage). In return for a company’s investment and job creation, they would receive a 15% investment credit, 10% wage credit, tangible personal property exemption for 10 years, and a sales tax refund on all capital purchases. In addition, the company may use the credits to offset their real property taxes at the site of the project, as well as apply them to sales and income taxes, and employee withholding. The entitlement period is 10 years for these benefits as opposed to the next highest entitlement period of seven years.

Nebraska gas station owners make little profit from gasoline sales

Patricia Tillotson and her husband own a convenience store in Battle Creek. Tillotson said customers now understand the high pump prices at Tilly’s Gas & Shop and other gas stations around the country aren’t the fault of the station owners. Like most stores of its kind, Tilly’s makes a majority of its profit from grocery and other convenience items.

Tillotson said it’s difficult to keep a small business operating in a small town when the cost of everything is increasing. “I’ve heard a lot of people say, ‘We’re not even bothering to get the camper out,’” she said.

Hal Seeley, who opened Four Seasons Mini Mart in Pierce with his wife, Mary, earlier in the year, said gas station merchants make very little - if anything - on the sale of gas. “Quite often, we’re making only three to five cents a gallon,” he said. But when customers use a credit card to purchase fuel, there are charges and fees that have to be paid that often subtract from what minuscule profit there is, he said.

Petition filed to repeal law moving Nebraska State Fair

Nebraskans may be able to vote on whether to move the state fair from its longtime home in Lincoln to Grand Island. A referendum petition to repeal a new state law authorizing the move was filed Monday with the Secretary of State’s office. The Grand Island Independent reports that seven people from Omaha and Lincoln filed the petition.

To get the referendum on the November ballot, about 60,000 signatures would need to be collected. According to the Secretary of State’s Web site, petitions to repeal a state law are valid if the signatures are received within 90 days of the adjournment of the Legislative session.

Lawmakers finished their work on April 17, which means the signatures are due in mid-July. In April, Gov. Dave Heineman signed legislation that will move the Nebraska State Fair to Grand Island by 2010. The law was the culmination of months of deal-making between parties interested in having the fair, state officials and UNL.

Nebraska’s economy slows in May

Information businesses in Nebraska — such as publishing companies — struggled in May and inflation continued to be a concern. That’s according to a new survey of supply managers and business leaders in the state. Creighton University economics professor Ernie Goss oversees the monthly survey. The problems for information companies in the state offset strong performances other businesses reported.

Durable goods producers in the state — especially ones with strong ties to the farming — reported strong growth for May. The state’s overall economic index slipped in May to 50.3. The rating was 51 in April. Any score greater than 50 on the index indicates an expanding economy over the next three to six months.

Nebraska unemployment rate drops a tenth, to 3.1%

Nebraska officials estimate that the state unemployment rate increased slightly in April, to 3.1%. That’s a tenth of a point higher than the adjusted March figure of 3%. The February figure was 2.8%. The Labor Department says the national figure for April 2008 dropped a tenth of a point to 5%.

Survey: Most Nebraskans support health coverage for all

A survey of Nebraskans’ views on health care says 94% of Nebraskans would like to see affordable health plans available to everyone, regardless of their general health. The survey also says 76% would support a requirement that all Nebraskans must sign up for coverage, should such a plan become available.

The Nebraska Medical Association announced the results Thursday at the conclusion of the Nebraska Health Summit in Omaha. The group is advocating state legislation that would ensure all Nebraskans have health coverage. The survey says 90% of Nebraskans have health insurance.

All contractors in Nebraska must register

An expanded state law that goes into effect July 18 requires contractors and subcontractors doing business in Nebraska to register with the state. The expanded law also increases the registration fee, from $25 to $40, said Bill Hetzler, director of safety and labor standards for Nebraska Workforce Development/Department of Labor in Omaha.

Failure to register can result in a fine up to $500 for a first violation and up to $5,000 for a subsequent violation, Hetzler said. A person who is self-employed and does not pay more than $3,000 annually to employ others in the business is exempt from the $40 fee, but must fill out an affidavit with an application.

Contractors can fill out the registration application under the “labor/safety laws” section at www.nebraskaworkforce.com, but the application must be printed out and mailed in with a check for the $40 fee, Hetzler said. More information is available by calling 402-595-3095.

State warns against Internet loan scheme

The Nebraska Department of Banking and Finance warned Thursday against dealing with a company calling itself Penbrook Financial Group and giving a fictitious Omaha address. The department said Penbrook offers personal loans over the Internet and requires upfront “collateral payments” before making loans, usually $2,460 in four monthly payments.

The company does not have an office at the address it lists, the department said, and Nebraska law prohibits lenders from requiring advance payments. The department said it is trying to shut down the company’s Web site, which does not list a telephone number. The company could not be contacted for comment.

People who have dealt with Penbrook should contact the department at 877-471-3445 or the Federal Trade Commission at 877-382-4357. Department analyst Karen Reynolds said people should be careful about making online loan applications that require personal information. Online lenders may try to bypass state law by claiming residence in a different state or may adopt the name of a legitimate business.

Gov. Heineman declares state of emergency after tornadoes

Gov. Dave Heineman has declared a state of emergency in response to severe weather that unleashed several confirmed tornadoes Thursday in the central Nebraska area of Kearney and Aurora. The Governor is expected to travel to the area on Friday to survey storm damage.

Heineman said last night: “We won’t know the full extent of the damage until tomorrow, however it appears that Kearney was hardest hit and that is where our assistance will be focused overnight. A secondary operations center is being established in the area to coordinate with local emergency management and first responders.” Early reports indicate that there are several dozen homes damaged in and around Kearney, and several more that sustained damage in the Aurora area.

Yankton Bridge load limits concern

A 10-ton limit on the Meridian Bridge over the Missouri River in northeast Nebraska has forced truckers to take long detours, and the entire span will be closed for several weeks so repairs can be finished. A Yankton, SD official says all of this is costing truckers money and hurting business. Acting city manager Al Viereck says it’s costly for truckers to have to go 30 to 40 miles out of their way and double that to come back again.

Last week, the Nebraska Department of Roads said Jensen Construction, contractor for the new bridge that will replace the Meridian Bridge, has declined to do repair work on the older span. The department says a new contractor is being sought for that work.