LINCOLN, NEB. (November 9, 2006)—Ten months ago, the Nebraska Advantage Act went into effect and already is proving successful.

Seventy-three applications with a potential $3.33 billion investment and 7,300 jobs were submitted under the investment tax and/or wage credits sections of the Nebraska Advantage Act from the time it took effect January 1 through October 31, 2006.

The Nebraska Advantage package emphasizes capital investment, innovation, the creation of jobs, and provides training for workers who take those jobs.

Of the 73 applications submitted and categorized by broad industry, there were 19 projects, $1.89 billion investment with 1,276 jobs in the Biotechnology industry; 30 projects, $545.5 million investment with 1,572 jobs in Manufacturing/Processing; eight projects, $102.8 million investment with 3,038 jobs in Financial Services; and 16 projects, $792.6 million investment with 1,414 jobs in Telecommunications/Other Services. By location, 36 of those projects were located in the Omaha MSA, 10 in the Lincoln MSA, and 27 throughout Greater Nebraska.

The Customized Job Training Advantage also experienced a flurry of activity. With $15 million available July 1, 2005, $10.41 million has been committed for 56 projects that will create 5,972 jobs for Nebraskans.

“The Nebraska Advantage package improves the state’s tax climate, and rewards those businesses that invest here and hire Nebraska’s high quality workforce. Businesses are using these credits, and investing in our communities and people,” said Richard Baier, director of the Nebraska Department of Economic Development. “Nebraska has so many great things to offer businesses – our business-friendly climate, central location, first-class infrastructure, speed to markets, unmatched work ethic, high ranking quality of life, low overall cost of living, 100% public power system, and exceptional educational system, just to name a few.”

The Nebraska Advantage package expanded “5-Tier” benefits system includes:

Tier 1 – $ 1 million new investment and 10 new jobs – eligible for a refund of one-half the sales tax paid for qualified property purchases at the project, a full sliding scale wage credit of 3, 4, 5 or 6% depending on wage level, and a 3% investment tax credit

Tier 2 - $3 million new investment and 30 new jobs – sales tax refund of capital purchases at the project, the sliding scale wage credit and a 10% investment credit

Tier 3 – Jobs only tier – 30 new jobs, receives the sliding scale wage credit with no capital investment required

Tier 4 - $10 million investment and 100 new jobs – sales tax refund, jobs credit, investment credit, and a personal property tax exemption for turbine-powered aircraft, mainframe computers, agricultural product processing machinery and personal property used in a distribution facility

Tier 5 – Investment only tier – $30 million in new investment and no new jobs

The Nebraska Advantage package also benefits businesses with:

Rural Advantage (Two levels: $125,000 investment and two new jobs; $250,000 investment and five new jobs)—Twelve project applications submitted with a potential $13.62 million in investment and 92 jobs

State and local sales tax exemptions of manufacturing machinery, equipment and related services

Research and development refundable tax credits equal to 3% of research and development expenditures

Microenterprise tax credit

Inventory tax exemptions

For information on the Nebraska Advantage, visit www.NebraskaAdvantage.biz or call 402-471-3747

FOR INFORMATION, CONTACT:

Richard Baier at 402-471-3747, or email: This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

Individuals who are hearing and/or speech impaired and have a TDD, may contact the department through the Statewide Relay System by calling one of the following numbers:
711, (800) 833- 7352 (TDD), or (800) 833-0920 (voice).
The relay operator should be asked to call DED at (800) 426-6505, or (402) 471-3111.