State Incentives

NEBRASKA ADVANTAGE ACT:

The Nebraska Advantage was designed to create a business climate that makes Nebraska the preferred location for starting and growing a business. The long-term goals of the package are to promote growth of existing companies through job retention and new capital investments; to increase the number of successful startup business ventures in the state; foster the commercialization of new products and ideas; and to recognize the different needs of Nebraska's many industries.

A new component of the incentives package is the Nebraska Small Business Advantage, which is part of a larger program that sets out incentives for companies that impact communities through capital investments ranging from $1 million to $30 million, and job creation ranging from 10 to 100 new jobs. The first of five tiers allows companies making a $1 million investment and creating 10 jobs to qualify for tax credits.

Concepts originally proposed as separate legislative bills also have been incorporated into the structure of LB 312 and LB 90, including state and local sales tax exemptions for the purchase of manufacturing machinery, equipment and related services.

The Nebraska Research and Development Advantage allows qualifying research and development companies to claim a tax credit equal to 3 percent of increased expenses related to research and development.

The Nebraska Micro-Enterprise Tax Credit Program allows a business with five or fewer employees that makes up to $10,000 in new investment in an economically struggling community or area will qualify for a 20 percent refundable investment tax credit.

Originally proposed by the Governor, the Nebraska 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 two new jobs and invest $125,000 in counties with less than 15,000 residents.

LB 90, the second bill making up the Nebraska Advantage, addresses rural development and emphasizes the contributions made by Nebraska's entrepreneurs, as well as agricultural and value-added industries, including alternative fuels such as ethanol.

The Nebraska Agriculture Innovation Advantage reauthorizes a value-added grant program, providing 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.

The Building Entrepreneurial Communities Act provides grants of up to $75,000 to rural communities to implement collaborative projects addressing issues related to chronic economic distress, unemployment, below-average per capita income, and severe population loss.

Each of these components will help keep Grand Island’s economy strong through greater investment in businesses of all sizes and the workforce of tomorrow.