State Incentives

Nebraska Advantage Act

“Nebraska Advantage is the most aggressive economic development package approved in Nebraska during the last eighteen years, and arguably, during the full history of the state. It not only builds on the incentives already in place, but adds significantly to the types of businesses impacted,” said Richard Baier, director of the Nebraska Department of Economic Development.

Highlights of the Nebraska tax structure

• Sales-only formula used to calculate corporate income tax liability
• No state property tax
• No inventory tax
• No personal property tax on intangibles
• No sales tax on raw materials when used as ingredients or component parts in manufacturing operations
• No sales tax on sales of energy for processing or manufacturing purposes
• No sales tax on water used exclusively in manufacturing and processing
• No sales tax on qualified agricultural machinery and equipment
• No sales tax on manufacturing machinery, equipment, and related services
• Sales and use tax refunds are available on qualified air and water pollution control equipment
• Sales and use tax refunds are available on property qualifying for certain investment incentives

Nebraska's New Generation of Economic Development Incentives

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 also offers

• Employees with an unmatched work ethic
• Central location offering an integrated system of interstates, mainline railroads, and airports
• Industrial sites and buildings ready for immediate occupancy
• A 100% public power system – the only state that offers it – providing customers with electrical power at some of the lowest rates in the nation
• Nebraska Quality of Life Brochure (PDF)

Expand or grow your business in Nebraska, and see how it will positively impact your bottom line.