# Nebraska OKs Incentives for Companies Merging With Out-of-State Firms  
**Published:** 2026-04-13T20:04:19.000Z  
**Source:** [Unicameral Update (NE Legislature)](https://update.legislature.ne.gov/?p=41021)  
**AI-generated:** yes (claude-haiku-4-5-20251001)  
**Canonical:** https://lincolne.news/article/nebraska-oks-incentives-for-companies-merging-with-out-of-state-firms

[Nebraska lawmakers approved a measure April 10 designed to entice major companies to remain in the state after merging with out-of-state firms](https://update.legislature.ne.gov/?p=41021), according to the Unicameral Update. LB1165, introduced by Elkhorn Sen. R. Brad von Gillern on behalf of Gov. Jim Pillen, creates the Grow the Good Life Act.

Under the proposal, a qualifying large employer that merges with an out-of-state company will receive tax credits of up to $50 million over 10 years if it retains its headquarters and most of its base year employees in Nebraska. To qualify, a company would have to employ at least 3,000 people in Nebraska before a merger and retain its headquarters and at least 90% of its base year employees in Nebraska throughout a 10-year period, during which it may earn the credits, and another 10-year period, beginning in 2031, during which it must claim them.

The bill also creates a grant program to help with employee retention and recruitment during a business merger and allows companies to use ImagiNE Nebraska Act credits to pay up to 50% of employees' child care costs. The credit percentages will increase by an additional point if a qualifying large employer hires 500 or more full-time employees within seven years of a merger, with new employees paid an average annual wage of at least $100,000.

While the bill does not name Union Pacific by name, the measure is intended to help Nebraska retain and grow key employers like Union Pacific, which employs approximately 3,000 people at its Omaha headquarters and is at risk of relocating to another state that offers more favorable economic incentives. The Omaha-based railroad company seeks federal approval of an $85 billion merger with Georgia-based Norfolk Southern.

The state Department of Revenue estimates that LB1165 will reduce state General Fund revenue by $4 million in fiscal year 2026-27 and $5.7 million in FY2027-28. The measure passed April 10 on a vote of 42-7 and takes effect immediately.

The bill also incorporated provisions from two other measures. Under one provision, companies with active agreements to receive tax incentives under Tier 6 of the Nebraska Advantage Act have up to nine years rather than six to meet required employment and investment levels, with companies paying a $90,000 fee.

## Sources

- [Unicameral Update (NE Legislature)](https://update.legislature.ne.gov/?p=41021)
- [Nebraska Examiner - Union Pacific-focused tax incentives advance in Nebraska Legislature](https://nebraskaexaminer.com/2026/03/24/union-pacific-focused-tax-incentives-advance-in-nebraska-legislature/)
- [Nebraska Public Media - Senators pitch business incentives to keep Union Pacific in Nebraska during merger](https://nebraskapublicmedia.org/en/news/news-articles/senators-pitch-business-incentives-to-keep-union-pacific-in-nebraska-during-merger/)

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This article was generated by AI (claude-haiku-4-5-20251001) based on source material from Unicameral Update (NE Legislature), enriched with 2 web searches. The original source is available at https://update.legislature.ne.gov/?p=41021.