HEBRON, NEB. (July 14, 2005)-Gov. Dave Heineman lifted a burden from the backs of Nebraska’s manufacturers when he signed into law this legislative session the Nebraska Advantage Act, eliminating the sales tax on manufacturing equipment and machinery. This tax relief, imposed by very few states, helps create the kind of business climate that makes Nebraska the preferred location for starting or growing a business.

“Despite the reliable strength of Nebraska’s workforce, our manufacturers have had to overcome an unfair advantage enjoyed by many of their competitors in neighboring states,” Gov. Heineman said. “It is time we helped our manufacturers compete on more even footing, and the Nebraska Advantage accomplishes that aim.”

Gov. Heineman was at Metalquest Unlimited Inc. in Hebron today as part of his statewide promotional tour to convey the many benefits the new Nebraska Advantage package offers business and industry. 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; to foster the commercialization of new products and ideas; and to recognize the different needs of Nebraska's diverse industries.

“Providing a sales tax exemption on manufacturing equipment is an excellent avenue towards increasing economic development in Nebraska and will free up working capital to allow for increased economic growth,” said Scott Harms, president, of Metalquest Unlimited Inc. “This will help all manufacturers throughout the state.”

One component of the Nebraska Advantage jobs-creation package provides for a statewide exemption of manufacturing machinery, equipment and related services from local or state sales tax assessment. First proposed by Sen. Tom Baker, District 44, the package definition of manufacturing machinery, equipment, and services includes: 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 a 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 of parts, and all installation, repair and maintenance service performed on such equipment.

In addition to the tax exemption on manufacturing equipment and machinery, the overall Nebraska Advantage package targets a wide-ranging list of businesses and industries, and provides tax credits equal to 3% for qualifying businesses conducting R&D activities; tax credits for businesses with five or fewer employees that make up to $10,000 new investment in economically challenged areas; a separate tier for qualified businesses (non-retail/local service businesses) with refundable tax incentives for projects that create two new jobs and invest $125,000 in counties with less than 15,000 residents; and the package classifies tele-workers as new employees.

Gov. Heineman also signed into law $15 million for job training, providing a flexible, discretionary custom job training program to help ensure the state’s workforce is prepared for advances in rapidly changing industries.

Also incorporated into the structure of the Nebraska Advantage package, is the Rural Development package, with the Nebraska Agriculture Innovation Advantage and Building Entrepreneurial Communities.

“Each of these components will help keep Nebraska’s economy strong through greater investment in businesses of all sizes and in the workforce of tomorrow,” Gov. Heineman said.

The Nebraska Department of Economic Development administers the Nebraska Advantage package.

For more info contact:

Richard Baier, 402-471-3747