Category: Nebraska

Nebraska Credits and Incentives

As we’ve mentioned before, our Georgia clients frequently ask us to investigate potential credits and incentives in other states where they have operations, potential acquisitions or strong relationships with customers or vendors. In addition, private equity groups ask us about potential $$ for their portfolio companies.
We were recently asked about credits and incentives in Nebraska, and their state economic development professionals gave us some details (Nebraska incentives site click here).
Nebraska offers a small selection of credits and incentives for new and existing businesses.  CNBC ranked Nebraska #11 in their 2016 America’s Top States for Business survey (Georgia was #8 in the same survey).    
Incentives and Credits include:
The Nebraska Advantage Package for new, expanding, or relocating businesses. Six tiers, varying benefits, must be qualifying business projects. Benefits include income tax, withholding tax, and sales tax reductions, depending on levels of investment and jobs created. Pretty complex process. An application must be submitted before the project begins.

Nebraska Advantage Research and Development Credit — Offers a refundable tax credit for qualified research and development activities undertaken by a business entity for 21 years. The credit is equal to 15 percent of the federal credit allowed under Section 41 of the Internal Revenue Code of 1986 for research and development.  Higher percentage for expenditures involving Nebraska colleges and universities.

Other Incentives
— Local tax abatement, workforce training, and several financing programs, depending on the project.

Compared to Georgia, Nebraska has:
  • Slightly lower corporate and comparable personal income tax rates
  • Comparable combined state and local tax burden
  • A narrower range of incentives
  • Pre-approval required for all incentives
To summarize, Nebraska is below average for business tax incentives in a central Midwest location.