New Nebraska Law Threatens Tax Incentives for Companies with Chinese Subsidiaries

Pillen-championed legislation cracks down on 'foreign adversarial companies', raising concerns among business community

Published on Feb. 20, 2026

Got story updates? Submit your updates here. ›

A new Nebraska law championed by Governor Jim Pillen aims to crack down on American companies with ties to China, but its broad definition of 'foreign adversarial companies' has been interpreted to include firms with Chinese subsidiaries, threatening to blow a hole in the state's long-standing business incentive programs. The law has set off alarms within the business community and could impact dozens of companies across Nebraska that have active tax incentive agreements.

Why it matters

Nebraska has long relied on tax incentives to attract and retain businesses in the state, but this new law could undermine those efforts by denying incentives to companies with even minor Chinese business ties. This raises concerns about the state's ability to remain competitive in recruiting and retaining companies, as well as the potential impact on jobs and investment across Nebraska.

The details

The new law, LB 644, bars 'foreign adversarial companies' from receiving state tax incentives. While the intent was to target companies directly owned by adversarial nations like China, the Nebraska Department of Revenue has interpreted the law's broad definition to include companies with Chinese subsidiaries. This has led the department to send letters to some companies suggesting they will be unable to collect on their existing tax incentive agreements with the state.

  • LB 644 was passed by the Nebraska Legislature and signed into law by Governor Pillen in 2025.
  • The Nebraska Department of Revenue began sending letters to companies in October 2025 notifying them they may be ineligible for tax incentives due to the new law.

The players

Jim Pillen

The Republican Governor of Nebraska who championed the new law targeting 'foreign adversarial companies'.

Valmont

An 80-year-old Nebraska company that pioneered the center pivot irrigation system and has operations in China, raising concerns it could be impacted by the new law.

Smithfield

A major pork producer owned by a Chinese company that operates a plant in Crete, Nebraska and has active tax incentive agreements with the state.

Syngenta

An agricultural company owned by ChemChina that has two active tax incentive agreements with Nebraska worth nearly $90 million.

Lindsay Corporation

A Nebraska-based irrigation equipment manufacturer that has a subsidiary in China, potentially putting its own tax incentive agreements at risk.

Got photos? Submit your photos here. ›

What they’re saying

“At a minimum, LB 644 sends an unfortunate message to the national and local business communities and to the national site selection community that they cannot rely on the commitment Nebraska has made in its job and investment incentives.”

— Nick Niemann, Omaha tax attorney and tax incentive expert (Flatwater Free Press)

“There are questions about whether or not Nebraska should be giving taxpayer funds to companies for them to then turn around and take those dollars and invest them in adversaries of the United States.”

— Eliot Bostar, Nebraska State Senator (Flatwater Free Press)

What’s next

The Pillen administration has indicated that changes to the law may be forthcoming, with a focus on denying incentives to companies directly owned by China or the Chinese government. However, it remains unclear how the state will address the impact on Nebraska-based companies with Chinese subsidiaries.

The takeaway

This case highlights the delicate balance states must strike between protecting national security interests and maintaining a business-friendly environment that can attract and retain companies. Nebraska's experience underscores the potential unintended consequences of overly broad legislation targeting foreign adversaries, which could end up harming homegrown businesses and the state's economic development efforts.