Nebraska legislation will regulate professional employer organizations in that state, and a Wisconsin bill clarifies that client businesses of PEOs will still be entitled to receive tax credits and other economic incentives, the National Association of Professional Employer Organizations reported.

Nebraska legislators approved the 2010 Professional Employer Organization Registration Act, bill LB 579, last Thursday. The legislation sets standards for PEOs and requires them to register and file annual audited financial statements with the Nebraska Department of Labor, according to NAPEO.

Nebraska has more than 30 PEOs serving several hundred businesses across the state, according to NAPEO. Nebraska will be the 35th state to regulate PEOs.

The Wisconsin bill, Senate Bill 504, clarifies that workers employed through a PEO will be counted as employees of client firms when local governments calculate tax credits and economic development incentives for the client firms, according to an analysis by the Wisconsin Legislative Reference Bureau.

The bill also excludes temporary help agencies from the definition of PEOs, according to the bureau.

The Wisconsin legislation was presented to Gov. Jim Doyle on Thursday.