Senator pitches plan to offer tax credit to help slow ‘brain drain’ in Nebraska | Regional Government
Day stated her expense “keeps skin in the game for everyone involved.” It does not offer wholesale trainee loan forgiveness, nor does it provide services a 100% tax credit for making trainee loan payments.
The overall credits would be topped at $1.5 million every year, Day stated, with a minimum of 25% of the credits being reserved for small companies with less than 30 staff members.
“Nebraska has some really robust corporate tax incentives for very large businesses, and I have always wished we did better as a state to support … small, locally created and locally owned businesses,” Day stated.
Education groups backed the strategy, stating it offered a reward to both companies and staff members.
If companies paid an overall of $3,600 towards a staff member’s trainee loan financial obligation — the quantity required to get approved for the complete $1,800 tax credit — and if staff members matched that quantity, a lot of college graduates might settle their loans in 4 years, stated Treva Haugaard, executive director of the Council of Independent Nebraska Colleges.
“This type of employer incentive allows a recent graduate to have hope that they will not continue to be in debt for the following 10 years,” Haugaard stated.
Once that financial obligation is settled, those staff members will have more non reusable earnings to assist create financial activity, she included.
Jobber Wiki author Frank Long contributed to this report.