(Lincoln, Neb.) Gov. Dave Heineman today provided an update on economic development efforts associated with the Nebraska Advantage Act. The Nebraska Advantage Act was signed into law in 2005 to update the state’s business incentive package and stimulate job growth in Nebraska.

The Nebraska Advantage was designed to encourage new capital investment and job creation in communities throughout the state. The program took effect on Jan. 1, 2006. By the end of July, 116 applications had been received from businesses expecting to invest a potential $4.06 billion in the state and create more than 10,400 new jobs during the next several years.

“It takes more than a package of tax credits to stimulate new job creation,” Gov. Dave Heineman said. “Our state continues to attract the attention of businesses looking to expand because of the many wonderful things Nebraska has to offer. However, you also need a competitive and dynamic business climate and that is the edge the Nebraska Advantage has helped provide.”
 
Companies applying for incentives offered through the Nebraska Advantage fall into one of four categories: biotechnology firms, expansions in the telecommunications industry, companies in the financial services sector, and manufacturing or processing operations.

Of the more than $4 billion in capital investment planned to occur during the next several years, more than half will come in the area of biotechnology. Currently, the 26 projects in this industry will invest more than $2.67 billion in Nebraska communities and will be responsible for creating more than 1,860 jobs. With more than 3,650 jobs set to be created in the coming years, the financial services sector is expected to create the most jobs of any industry applying for incentives under the Nebraska Advantage. So far, 15 companies in this industry have applied for benefits, listing a total of $187 million in possible capital investment.

The sector with the most projects to date is the manufacturing and processing industry with 51 applications from companies interested in investing more than $364 million and creating an additional 2,505 jobs. The remaining 24 projects in the telecommunications and other business services category will invest more than $844 million in Nebraska and create more than 2,460 jobs.

Broken down by geographic location, 55 projects are located in the four county area making up greater Omaha, 18 are in or around Lincoln, and the remaining 43 projects will be in communities throughout the state, primarily in greater Nebraska.

A key element in the design of the Nebraska Advantage was to create a business climate that makes Nebraska the preferred location for starting and growing a business. The incentives portion of the package provides tax credits to businesses based on a tiered structure of capital investment and job creation. Businesses creating as few as 10 new jobs and investing $1 million in capital are eligible to receive benefits under the Nebraska Advantage.

In addition to the 116 applications received under the investment tax and wage credit portion of the Nebraska Advantage, the state has received 50 applications from businesses applying for credits under the Rural Advantage portion of the package, with the potential for an additional $72.46 million to be invested in greater Nebraska communities, creating 185 new jobs.

Gov. Heineman added, “We knew one of the most powerful issues for our state and for the young people attending our colleges and universities was to create good quality jobs right here in Nebraska. The Nebraska Advantage is creating real jobs and real results for Nebraska.”

The two remaining portions of the program include the Customized Job Training Advantage, which made $15 million available to be used in training for workers in newly created jobs. The Nebraska Department of Economic Development (DED) has made arrangements for $14.3 million in job training funds to be distributed as businesses complete expansions and look to hire new workers.

Finally, the program aimed at providing support and technical assistance to the smallest companies in the state, the Nebraska Microenterprise Advantage, attracted 859 applications during the past two years. Funding was allocated in both 2006 and 2007 and was distributed almost immediately. DED has responded to the demand for additional programs to support businesses with five or fewer workers this year by increasing funding to the state’s Microenterprise Partnership Fund and exploring opportunities to partner with a private angel investment network to help provide start-up capital many entrepreneurs and small business owners need.

DED Director Richard Baier said, “We are pleased with the progress our state has made recently. People across the country are beginning to think about Nebraska as a leading state in business development, and we are committed to continuing efforts to help create an atmosphere that stimulates business and innovation for Nebraska communities.”

CONTACT
Patty Wood, DED, 402-471-1559