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Incentives

For comprehensive information on Nebraska’s business incentives, visit imagine.Nebraska.gov

ImagiNE Nebraska is our redesigned incentives portfolio created with small and large businesses in mind.  Whether you are expanding your business or relocating, imagiNE Nebraska is a program that is:

  • Simplified for ease of compliance
  • Scaled for small to large businesses
  • Designed to help train and recruit talent
  • Available statewide and throughout multiple industries
  • Streamlined to help save time and costs

APPLICATION LEVELS

INVESTMENT

JOB CREATION

Economic Redevelopment Areas

$250,000 – $1 million

5 FTE

Rural Manufacturing Growth and Expansion

$1 million

5 FTE

Urban Manufacturing Growth and Expansion

$1 million

10 FTE

Growth and Expansion

$1 million

10 FTE

Quality Jobs

None

20 FTE

Quality Jobs Investment

$5 million

30 FTE

Mega Project

$250 million

250 FTE


Modernization
$50 millionN/A

Businesses are rewarded for investing in Nebraska and hiring Nebraskans in the form of tax benefits such as credits, refunds and exemptions.  These benefits can then be used in many ways, including withholding, sales/use tax, recruitment/retention activities, job training and childcare expenses.  At some application levels, benefits also include Sales/Use Tax Direct Refunds and Personal Property Tax Exemptions.  Some highlights of our new program include:

Wage Credits:

Wage Credits are awarded based on the average wages paid to new, full time equivalent (FTE) employees.  The rate at which wage credits are earned and the required wage of new FTEs varies depending on application levelWage credits are awarded during each year of the Performance Period, as long as qualifying employment and investment levels are maintained.

For example, at the Mega-Project application level, a wage credit of 7% of average wages paid to new FTEs may be earned after qualifying investment and job growth levels are met. 

Investment Credits:

Investment Credits are awarded based on investments in qualified property.  Credits may be earned on investments such as improvements to existing real estate, new real estate purchases, new building construction, equipment and more.   Investment Credits awarded vary depending on application level and in some cases, the amount invested.  Investment credits are awarded during each year of the Performance Period and are retroactive to the Application Date, as long as qualifying employment and investment levels are maintained.

For example, at the Mega-Project application level, an investment credit up to 7% may be earned after qualifying investment and job growth levels are met.

Sales/Use Tax Direct Refunds

*Only available at the Quality Jobs – Investment, Mega-Project, and Modernization application levels* 

A 100% sales/use tax direct refund is available for all purchases, including rentals, of qualified property used at the qualified location(s). This may include sales/use tax refunds on:

  • Tangible property used at the qualified location(s), excluding motor vehicles
  • Improvements to existing real estate and new real estate purchases
  • New building construction

Personal Property Tax Exemption
*Only available at the Quality Jobs – Investment, Mega-Project, and Modernization application levels* 

Depending on application level, a personal property tax exemption may be earned on:

  • Personal Property that constitutes a data center or business equipment that is located at the qualified location(s) and is involved directly in the manufacture or processing of agricultural products (Quality Jobs – Investment & Modernization Application Levels)
  • All Personal Property (Mega-Project Application Level)

Ramp-Up Period

The ramp-up period is the length of time after submitting an application that an applicant has to reach the threshold of investment, wages and employment under each type of investment.  The ramp-up period is defined as: the period of time from the date of the complete application through the end of the fourth year after the year in which the complete application was filed.

For example, if a business submits a complete imagiNE application on March 15, 2021, the end of the ramp-up period would be December 31, 2025

Performance Period

The Performance Period is period of time during which credits and other benefits are awarded and begins when the qualifying job growth and investment requirements are met.  The Performance Period is defined as: the year during which the required increases in employment and investment were met or exceeded and each year thereafter until the end of the sixth year after the year the required increases were met or exceeded.

For example, if a business submits a complete imagiNE application on March 15, 2021 and reaches the job growth and investment requirements for their application level in 2023, the performance period would begin in 2023 and end on December 31, 2029.

Carryover Period

The carryover period is defined as: the period of three years immediately following the end of the performance period.  Any remaining credits that went unused during the Performance Period may be used during the Carryover Period.

Qualified Location Activities

  • Manufacturing – 31, 32, or 33, including pre-production services;
  • Testing Laboratories – 541380;
  • Rail Transportation – 482;
  • Truck Transportation – 484;
  • Insurance Carriers – 5241;
  • Wired Telecommunications Carriers – 517311;
  • Wireless Telecommunications Carriers (except Satellite) – 517312;
  • Telemarketing Bureaus and Other Contact Centers – 561422;
  • Data Processing, Hosting, and Related Services – 518210;
  • Computer Facilities Management Services – 541513;
  • Warehousing and Storage – 4931;
  • The administrative management of the taxpayer’s activities, including headquarter facilities relating to such activities, or the administrative management of any of the activities of any business entity or entities in which the taxpayer or a group of its owners hold any direct or indirect ownership interest of at least ten percent, including headquarter facilities relating to such activities;
  • Logistics Facilities – Portions of NAICS 488210, 488310, and 488490 dealing with independently operated trucking terminals, independently operated railroad and railway terminals, and waterfront terminal and port facility operations;
  • Services provided on aircraft brought into this state by an individual who is a resident of another state or any other person who has a business location in another state when the aircraft is not to be registered or based in this state and will not remain in this state more than ten days after the service is completed;
  • The conducting of research, development, or testing, or any combination thereof, for scientific, agricultural, animal husbandry, food product, industrial, or technology purposes;
  • The production of electricity by using one or more sources of renewable energy to produce electricity for sale. For purposes of this subdivision, sources of renewable energy includes, but is not limited to, wind, solar, energy storage, geothermal, hydroelectric, biomass, and transmutation
    of elements;
  • Computer Systems Design and Related Services – 5415;
  • The performance of financial services. For purposes of this subdivision, financial services includes only financial services provided by any financial institution subject to tax under Chapter 77, article 38, or any person or entity licensed by the Department of Banking and Finance or the federal Securities and Exchange Commission.
  • For more information, please visit our Eligible Activities Page

For questions about qualified location activities or alternative qualification, please contact the Nebraska Department of Economic Development at DED.imagiNE@nebraska.gov

Use of Credits

Credit

Use

Compensation Credit
  • Income Tax
  • Sales Tax
  • Employee Withholding
Investment Credits
  • Income
  • Sales Tax

Customized Job Training Program

Customized Job Training Grants, Per Job,
For New Jobs Created – Greater Omaha
Percent of Average Starting Wage Average Starting Wage Range of Assistance
100% $9.87 $500
125% $12.34 $1,000
150% $14.80 $2,000
175% $17.27 $3,000
200% $19.74 $4,000
Source: Nebraska Department of Labor, Labor Market Information, website, June 2008; DED estimates
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