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 The Nebraska Advantage Act , LB 312, is a new economic development incentive that makes Nebraska more competitive for business expansions or locations, and strengthens Nebraska’s economy. The Nebraska Advantage Act, which replaces legislation that was passed nearly 20 years ago, is more comprehensive to meet the needs of your expanding or relocating business.
The Nebraska Advantage Act contains 5 tiers of benefits:
Tier 1 – Nebraska Small Business Advantage – $ 1 million of new investment and 10 new jobs – Qualifying businesses under this tier are eligible for a refund of ½ of the sales tax paid for qualified property purchases at the project, the full sliding scale wage credit of 3,4,5 or 6% depending on wage level, and a 3% investment tax credit. This tier is available to manufacturers, research and development or testing businesses, and listed technology-related services where at least 75% of the sales and licensing are to out of state customers or to the federal government.
Tier 2 - $3 million of new investment and 30 new jobs – This tier qualifies for sales tax refunds for capital purchases at the project, the sliding scale wage credit and a 10% investment credit.
Tier 3 – Jobs only tier – For the creation of 30 new jobs, the company receives the sliding scale wage credit. No capital investment is required.
Tier 4 - $10 million in investment and 100 new jobs – In addition to the sales tax refund, jobs credit, and the investment credit, qualifying businesses under this tier 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.
Tier 5 – Investment only tier – Requires $30 million in new investment and no new jobs. Companies receive a refund of sales taxes paid on eligible property with the project.
INSERT INCENTIVES CALCULATOR
WAIVER of LIABILITY: Officials representing the Nebraska Department of Economic Development have prepared the enclosed estimates to determine the amount of any benefits that might become available for this project under the Nebraska Advantage tax incentive program. Be advised that these represent projected benefits. The Nebraska Department of Revenue will make a final determination of any tax incentives complimenting this project. The Nebraska Department of Economic Development and its representatives waive any financial responsibility for the accuracy of these numbers should they be relied upon by anyone outside this State agency.
Current Sales Tax Rates from NE Department of Revenue
For computing Personal Property Tax Exemption amounts in Tier 4, you can use the individual County and Local Subdivision tax rates found here
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.
Manufacturing Machinery and Equipment Sales Tax Exemption
MANUFACTURING MACHINERY & EQUIPMENT (Excerpt from LB312) Statute
* Explanatory Notice from Nebraska Department of Revenue
Download Nebraska Advantage Brochure
Nebraska Department of Economic Development
As the state’s lead economic development agency, the Nebraska Department of Economic Development (DED) is dedicated to helping businesses locate the information and resources they need to succeed, grow, and prosper.
The major responsibility of the Nebraska Department of Economic Development is to use the tools and resources provided by the Nebraska Legislature, under the leadership of the governor to grow, diversify and develop the capability of Nebraska’s economy to grow at a pace that enhances the lives of its residents.
More specifically, the mission of the Nebraska Department of Economic Development is to provide quality leadership and services that enable Nebraska communities, businesses, and people to succeed in a global economy. We are here, equipped and ready, to assist you and your community in developing and capitalizing on economic development opportunities.
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Incentives & Financing 
