LINCOLN — Yahoo is asking the state for a tax cut so it can move a manufacturing facility, and about 15 to 20 jobs, from Oregon to Nebraska.
The plant, which would assemble computer servers for use at other Yahoo facilities, would be an expansion of the 250 employees already working at Yahoo's data center in La Vista.
"Yahoo loves Nebraska," said Chuck Whitney, facilities manager in La Vista.
The company, however, wants the state to amend its tax laws so that equipment shipped to Nebraska for assembly here, and then shipped to other facilities, would be exempt from taxes.
The tax break would amount to $1.7 million in the first year and $3.7 million in the second year.
Whitney said Nebraska's current tax laws were a "disincentive" to move the manufacturing facility from Portland to a more centralized location in La Vista.
State Sen. Abbie Cornett of Bellevue, sponsor of the Yahoo measure, Legislative Bill 1080, said the state would not lose any tax revenue because the Yahoo factory has not been built and is not paying taxes now.
Sen. Galen Hadley of Kearney said it didn't make sense to tax goods that were just "passing through" Nebraska. He said if they were sold in Nebraska, they would be subject to sales tax.
When asked by Sen. Deb Fischer of Valentine if Yahoo was seeking similar tax breaks in other states, Whitney said he did not know.
Yahoo was lured to La Vista in 2010 by a package of tax incentives and officials touting Nebraska's strong work ethic. The $140 million data center is now the state's largest.
The Legislature's Revenue Committee also took testimony Thursday on LB 1118, which would expand the Nebraska Advantage Act to attract larger data centers — those that create at least 30 jobs and require at least $300 million in investment.
Ron Sedlacek of the Nebraska Chamber of Commerce and Industry said there's a boom in data center construction. He said 1,000 new data centers are expected to be built in the next decade around the world.
A handful of Nebraska communities — including Kearney, Aurora, North Platte and South Sioux City — have invested in infrastructure to create ready-made "power parks" for data centers, Sedlacek said.
"If you want to be in the game, we believe that LB 1118 is a step in the right direction," he said.
Contact the writer:
402-473-9584, paul.hammel@owh.com
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