The Nebraska Advantage package was designed to create a business climate that makes Nebraska the preferred location for starting and growing your business. The Nebraska Advantage rewards businesses that invest in the state and hire Nebraskans. In this progressive, pro-business tax climate, corporate income and sales taxes are reduced or virtually eliminated.
The Nebraska Advantage Package Benefits Businesses With:
- Investment credits
- Wage credits
- Sales tax refund
- Customized job training
- State and local sales tax exemptions for purchases of manufacturing machinery, equipment and related services
- Research and development tax credits
- Microenterprise tax credits
- Inventory tax exemptions
Nebraska Advantage Includes
- Nebraska Advantage Act (LB312)
The Nebraska Advantage Act is a new economic development incentive that provides comprehensive assistance to businesses seeking to expand or locate in Nebraska. The initiative includes 5 tiers of benefits based on activity and investment.
- Research and Development Advantage
Provides a tax credit for research and development activities by any business entity. Allows a research tax credit to business firms that increase research expenditures in Nebraska. The credit is equal to 3% of any research and development expenditures that are greater than the average of the previous two years research and development spending. An important feature is that a business with little or no income may take advantage of the income tax credit by receiving a sales tax refund or a refundable income tax credit.
- Microenterprise Tax Credit Advantage
Provides a 20 percent refundable investment tax credit to micro businesses on new investment in targeted communities. Applicants may qualify for a maximum $10,000 throughout the life of the program. The credit is geared to companies with five or fewer employees, including start-ups. The credits would apply to new expenditures for wages, buildings, and non-vehicle depreciable personal property.
- Rural Development Advantage
Amends the Employment Expansion and Investment Incentive Act, formerly LB 608 passed in 2003, to provide qualified businesses with refundable tax incentives for projects that create 2 new jobs and invest $125,000 in counties with less than 15,000 residents. Tele-workers count as new employees. In addition, the $250,000-investment and 5-job thresholds remain in place for counties with populations 15,000-25,000.
- State and local sales tax exemptions of manufacturing machinery, equipment, and related services
Manufacturing machinery and equipment is defined to include: equipment for transporting raw materials or components, molds and dies for forming cast or injected products or its packaging materials, machinery to maintain the integrity of the product or environmental conditions, testing equipment for quality control, computers that control a manufacturing process, machinery used to produce steam, electricity, catalysts, and solutions, repair or replacement parts, and all installation, repair and maintenance service performed on such equipment.
- Agricultural Innovation Advantage (LB90)
The Agriculture Opportunities and Value-Added Partnership Act provides grants up to $75,000 to cooperatives, groups or associations to help offset the costs of research, education, training and market development of value-added products sold by producers.
- Nebraska Customized Job Training Advantage
The Job Training portion of the Nebraska Advantage initiative provides flexible and discretionary custom job training for businesses that maintain, expand and diversify the state’s economic base and, in the process, retain and create quality jobs for Nebraskans
