AUBURN, NEB. (July 14, 2005)-Nebraska’s smaller businesses got a boost this legislative session when Gov. Dave Heineman signed the Nebraska Advantage Act into law, providing a new generation of benefits for a competitive edge in expanding and attracting businesses. Priorities include job creation and the enhancement of skills for Nebraska’s employees.

Gov. Heineman was at Auburn Consolidated Industries in Auburn today to convey the many benefits that the new Nebraska Advantage package offers business and industry, particularly the package’s increased emphasis on small- to medium-sized businesses.

“One of the traits that makes Nebraska unique is the way our rural communities unite around smaller businesses to help them grow and prosper,” Gov. Heineman said. “The Nebraska Advantage is one way we at the state level can help boost our rural economies and communities by supporting the work of a new generation of innovative entrepreneurs.”

Companies that sell at least 75% of products or services to out-of-state entities or the federal government may be eligible for a refund of half the sales tax paid for capital purchases, a sliding scale job credit, and a 3% investment tax credit. This tier is available to manufacturers, research and development or testing businesses, and certain technology-related services.

“We’re so pleased that Governor Heineman and the Legislature have gone the extra mile to support manufacturing in the state,” said Steve Skaggs, materials manager with Auburn Consolidated Industries. “We are happy to be located in a state with the quality workforce Nebraska offers. We look forward to growing our business in Nebraska, and creating new jobs in Southeast Nebraska.”

The Nebraska Advantage was designed to create a business climate that makes Nebraska the preferred location for starting or growing a business. The long-term goals of the package are to promote the growth of existing companies through job retention, expansion and new capital investments; to increase the number of successful new 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.

New to the Nebraska Advantage package are tax benefits created for qualifying manufacturers, research and development (R&D) or testing businesses, and technology-related services that invest at least $1 million and create a minimum 10 new jobs.

The Nebraska Advantage package also provides sales tax exemptions for designated manufacturing machinery, equipment and related services; the Nebraska Research and Development Advantage-tax credits equal to 3% for qualifying businesses conducting R&D activities; the Micro-Enterprise Tax Credit Program-tax credits for businesses with five or fewer employees that make up to $10,000 new investment in economically challenged areas; the Nebraska Rural Development Advantage refundable tax incentives for projects that create two new jobs and invest $125,000 in counties with fewer than 15,000 residents; and the classification of 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