Nebraska offers a variety of business incentives to attract investment, stimulate job creation, and promote economic development across the state.  These incentives are designed to support industries like manufacturing, technology, agriculture, energy, and infrastructure development.  Below are some of the key business incentives available in Nebraska.

Nebraska Advantage Act

Overview

The Nebraska Advantage Act provides tax incentives for businesses that create new jobs and make significant investments in Nebraska.  This comprehensive program includes several tiers of incentives based on the size of the project and the number of jobs created.

Eligibility

• The business must meet the minimum requirements for job creation, which vary by tier.

• The business must make a significant capital investment in machinery, equipment, or infrastructure.

• The business must meet specific wage and benefit criteria.

Incentive Value

• The program offers tax credits, including income tax credits, personal property tax exemptions, and sales tax refunds.

• The value of the incentives increases with the scale of the project, with large projects potentially receiving substantial tax relief.

Application Process

Businesses must apply to the Nebraska Department of Economic Development (DED), providing a detailed project plan and outlining their job creation and capital investment projections.

Nebraska Research and Development (R&D) Tax Credit

Overview

The Nebraska R&D Tax Credit is designed to encourage businesses to invest in research and development activities.  The program offers tax incentives for businesses that develop new products, processes, or technologies.

Eligibility

• The business must incur qualified research expenses within Nebraska.

• The research must be related to the development of new or improved products or technologies.

Incentive Value

• The program offers a credit equal to 15% of the qualifying research expenses incurred in Nebraska.

• The credit can be used to offset the business’s income tax liability or may be carried forward to future years.

Application Process

Businesses must file a claim with the Nebraska Department of Revenue (NDR), providing documentation of their R&D expenses and activities.

Nebraska Advantage Microenterprise Tax Credit

Overview

The Nebraska Advantage Microenterprise Tax Credit is designed to support small businesses and entrepreneurs by providing tax credits for certain expenses related to business startup and expansion.  The program is targeted at businesses with fewer than 10 employees.

Eligibility

• The business must have fewer than 10 full-time employees.

• The business must be engaged in activities such as manufacturing, service industries, or retail.

• The business must invest in qualified expenses, such as equipment purchases or facility improvements.

Incentive Value

• The program offers tax credits up to 30% of the qualified expenses, with a maximum credit of $10,000 per year.

• The credit can be applied to offset income tax liability.

Application Process

Small businesses must apply to DED, submitting detailed information on their expenses and business activities.

Nebraska Property Tax Exemption for New or Expanding Businesses

Overview

Nebraska provides property tax exemptions for new or expanding businesses that meet specific investment and job creation requirements.  This incentive is aimed at reducing the financial burden on businesses investing in new property, facilities, or equipment.

Eligibility

• The business must create a minimum number of jobs and make substantial capital investments in new property or equipment.

• The business must be located in a qualified location, such as an opportunity zone or a community development district.

Incentive Value

• The program offers a property tax exemption on new real and personal property used in the expansion or new development.

• The value of the exemption depends on the scale of the investment and the number of jobs created.

Application Process

Businesses must apply through the local county assessor’s office, providing documentation of their investment and job creation plans.

Nebraska Environmental Trust Fund (NETF) Grants

Overview

The NETF program provides grants to businesses and organizations that undertake environmental projects aimed at conserving natural resources, protecting water quality, and reducing environmental pollution.  This program supports a variety of environmental initiatives, including renewable energy, waste reduction, and water conservation.

Eligibility

• The business or organization must be involved in a project that benefits the environment, such as clean energy projects, waste recycling, or water conservation efforts.

• The project must demonstrate measurable environmental benefits and sustainability.

Incentive Value

• The program offers grants for up to 50% of the project cost, with a maximum grant amount of $500,000.

• The funding can be used for a variety of environmental projects, including feasibility studies, construction, and equipment purchases.

Application Process

Businesses must apply through the Nebraska Environmental Trust, providing a detailed project proposal and environmental impact assessment.

Nebraska Job Training Grant Program

Overview

The Nebraska Job Training Grant Program provides funding for businesses that train new or existing employees in skills that are critical to the business’s success.  This program supports workforce development and helps businesses improve their employee productivity and competitiveness.

Eligibility

• The business must be involved in training its employees in specific skill areas.

• The training must be for positions that are directly related to the company’s operations.

Incentive Value

• The program provides grants of up to $5,000 per employee trained.

• The maximum grant amount varies based on the scope and number of employees to be trained.

Application Process

Businesses must apply to the Nebraska Department of Labor, submitting a detailed training plan, including the types of skills being taught and the number of employees involved.

Nebraska Tourism Tax Credit

Overview

Nebraska’s Tourism Tax Credit program is designed to attract tourism-related businesses and activities to the state.  The program provides financial incentives for businesses that develop new tourism attractions, facilities, or events in Nebraska.

Eligibility

• The business must create or expand tourism-related facilities, events, or activities that attract visitors to the state.

• The project must have a measurable impact on the local economy and tourism industry.

Incentive Value

• The program offers a refundable tax credit of up to 20% of eligible project costs.

• Eligible expenses include construction, marketing, and promotional efforts related to tourism development.

Application Process

Businesses must apply to DED, providing a project plan and expected economic impact.

Nebraska Renewable Energy Tax Credit

Overview

The Nebraska Renewable Energy Tax Credit is available to businesses that invest in renewable energy technologies, such as solar, wind, and bioenergy.  This program is designed to encourage the growth of clean energy industries in Nebraska.

Eligibility

• The business must invest in renewable energy systems, such as solar panels, wind turbines, or bioenergy facilities.

• The energy systems must be located in Nebraska and used for business operations.

Incentive Value

• The program provides a tax credit of up to 30% of the cost of qualifying renewable energy systems.

• The credit can be used to offset the business’s state income tax liability.

Application Process

Businesses must apply through the NDR, providing a detailed project proposal and documentation of expenses related to renewable energy investments.

Nebraska Community Development Block Grant Program (CDBG)

Overview

The Nebraska CDBG program provides funding to support community development and economic growth in underserved areas of the state.  This program is available to local governments, businesses, and organizations that undertake development projects in economically distressed communities.

Eligibility

• The project must be located in an eligible area, such as a low-income community.

• The project must benefit the community by creating jobs, improving infrastructure, or addressing other community development needs.

Incentive Value

• The program provides grants for up to 50% of the project cost, with a maximum grant amount of $500,000.

• Funds can be used for a wide range of development activities, including infrastructure improvements, housing construction, and commercial development.

Application Process

Businesses or local governments must apply to DED, providing a project proposal and a detailed budget for the community development activities.