Nebraska Economic Development Directory

Nebraska State Incentives

The four-part TALENT & INNOVATION INITIATIVE (TI2) was developed to enhance momentum in Nebraska’s fastest growing industries and others positioned to integrate new technologies:

• Nebraska Internship Program is a partnership with Nebraska businesses to create new, paid internship opportunities for college and university students. The program will create opportunities for 500 to 750 juniors and seniors studying at four-year institutions or students in their second year at a Nebraska community college to gain job experience. Awards will be made on a first-come, first-serve basis to companies creating new internship opportunities, which are capped at 10 per business. Internships will pay at least minimum wage and range from 12 week to year-long programs. Grant amounts are lesser of 40 percent of reimbursable costs or up to $3,500 in non-distressed areas, and lesser of 60 percent of reimbursable costs or up to $5,000 in distressed areas. Nebraska Internship took effect on June 1.
• Business Innovation Act is intended to help businesses develop new technologies to enhance quality job opportunities in the state. It will provide competitive grants for research at Nebraska institutions, new product development and testing, and help expand small business and entrepreneur outreach efforts. It will expand grant opportunities within targeted industries to help businesses providing matching funds with prototype development, commercialization and applied research in the state, and provide assistance for microenterprise projects. The Business Innovation Act takes effect Oct. 1.
• Site & Building Development Fund is intended to help increase industrial and commercial sites available and ready for business development. Communities will provide matching funds toward projects that can involve demolition, new construction and rehabilitation. State funding will be focused on land and infrastructure costs with 40 percent of funding available to non-metro areas.
• Angel Investment Tax Credit encourages investment in high-tech and other startup enterprises in Nebraska by providing refundable state income tax credits to qualified investors investing in qualified early-stage companies. Capped at $3 million annually, the program requires a minimum investment of $25,000 for individuals and $50,000 for investment funds. Eligible small businesses must have fewer than 25 employees, with the majority based in the state.

The NEBRASKA PROGRESS LOAN FUND (NPLF) will be available for permanent loans to qualifying small businesses, generally, representing existing and startup businesses. The minimum loan to any one business will be $50,000, with a maximum of $2 million. NPLF can also be provided for interim loans to qualifying small businesses for a term not to exceed three years. An interim loan maximum amount is $5 million. Loan terms will be negotiated on a case-by-case basis with a typical loan interest rate ranging from 0 percent to 4 percent. More favorable terms for the business will be a consideration for businesses located in census tracts or counties considered severely distressed. Principal and interest payments may be deferred for three years, with periodic interest payments due until loan maturity.

The NEBRASKA PROGRESS SEED FUND (NPSF) is designed to accelerate private investment in Nebraska-based start-up companies and increase overall investment impact. Through NPSF, Invest Nebraska Corporation will award seed capital funds that match private angel fund investments. The seed capital may be used by the start-up company for advanced intellectual property development and evaluation, including in-depth analysis of market potential, conducting competitive analysis, advanced proof of concept work for scientific discovery, advanced prototype design and development, research and development needed to attract venture capital financing, hiring key personnel, and related activities.

The NEBRASKA ADVANTAGE ACT contains five tiers of benefits:

•  Tier 1: Nebraska Small Business Advantage—Businesses that invest $1 million and create 10 new jobs are eligible for a refund of half of the sales tax paid for qualified property purchases at the project, the full sliding scale wage credit of 3 percent to 6 percent depending on wage level, and a 3 percent investment tax credit. This tier is available to manufacturers, research and development or testing businesses, and listed technology related services where at least 75 percent of the sales and licensing are to out-of-state customers or to the federal government.

• Tier 2: Businesses that invest $3 million and create 30 new jobs qualify for sales tax refunds for capital purchases at the project, the sliding scale wage credit, and a 10 percent investment credit.

• Tier 3: Jobs-only tier—Businesses that create 30 new jobs can receive the sliding scale wage credit. No capital investment is required to qualify.

• Tier 4: Businesses that invest $10 million and create 100 new jobs receive a personal property tax exemption for turbine-powered aircraft, mainframe computers, agricultural product processing machinery, and personal property used in a distribution facility for up to 10 years. This is in addition to qualifying for the sales tax refund, jobs credit, and the investment credit.

• Tier 5: Investment-only tier. This requires $30 million in new investment. Companies receive a refund of sales taxes paid on eligible property with the project.

NEBRASKA SUPER ADVANTAGE: Specifically rewards all non-retail companies that create higher-paying jobs. To qualify, the new jobs must pay at least 150 percent of the state average wage, or 200 percent of the county average, whichever is greater. Companies that create 75 new jobs and make a $10-million capital investment—or 50 new jobs and a $100-million investment—can receive a sales and use tax refund on capital purchases; a 10 percent wage credit on new employee compensation; a 15 percent investment tax credit; and a 10-year exemption on all personal property.

The INVEST NEBRASKA ACT allows companies to qualify for wage benefit credits. These credits may be used against withholding tax liability, for funding employee programs and for offsetting a company’s income taxes. A company has up to seven years to earn these credits. Upon attainment, the company has up to 10 years to earn and use the credits. After that period, unused credits can be carried over and used for an additional eight years.

The CUSTOMIZED JOB TRAINING PROGRAM provides training assistance on projects that offer an opportunity for economic development in Nebraska. Use of the funds is limited to eligible companies and eligible training projects.