ImagiNE Nebraska
The ImagiNE Nebraska tax incentive program is a redesigned incentive portfolio created with small and large businesses in mind. Whether you are expanding your business or relocating to Nebraska, ImagiNE rewards businesses that invest in the state:
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Economic Redevelopment Areas - $250,000 - $1 Million Investment, 5 new jobs, 70% Nebraska Average Wage
Earn a credit of 6% of the average wages paid to the new jobs, and a 4% Credit of investment.
Earn a credit of 6% of the average wages paid to the new jobs, and a 4% credit of investment. If Investment is above $10 Million, a 7% credit
Earn a credit of 4% of the average wages paid to the new jobs, and a 4% credit for investment. If Investment is above $10 Million, a 7% credit
Earn a credit of 4% of the average wages paid to the new jobs, and a 4% credit for investment.
Earn a credit of 5% of the average wages paid to the new jobs. If the average wage is above 150% Nebraska average wage, earn a credit of 7%. If the average wage is above 200% Nebraska average wage, earn a credit of 9%.
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Quality Jobs Investment - $5 Million Investment, 30 new jobs, 100% Nebraska Average Wage
Earn a credit of 5% of the average wages paid to the new jobs, a 7% credit of investment, 100% sales/use tax refund, and personal property tax exemption for ag processing and data center equipment. If the average wage is above 150% Nebraska average wage, earn a credit of 7%. If the average wage is above 200% Nebraska average wage, earn a credit of 9%.
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Mega-Project - $250 Million Investment, 250 new jobs, 150% Nebraska Average Wage
Earn a credit of 7% of the average wages paid to the new jobs, a 7% credit of investment 100% sales/use tax refund, and personal property tax exemption for all personal property. If the average wage is above 200% Nebraska average wage, earn a credit of 9%.
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Modernization - $50 Million Investment, no new jobs required, 150% Nebraska Average wage
Earn 100% Sales/use tax direct refund, and personal property tax exemption for ag processing and data center equipment.
ImagiNE Revolving Loan Fund
The ImagiNE Revolving Loan Fund was created to help businesses and improve the quality of life for workers and communities in Nebraska by addressing the need for workforce training and infrastructure development. Any taxpayer with application under the ImagiNE Nebraska Act is eligible to apply for a loan. Taxpayers may receive up to one workforce training and one infrastructure development loan per ImagiNE agreement.
Renewable Chemical Production Tax Credit Act
Tax credits under the Renewable Chemical Production Tax Credit Act are intended to stimulate the emerging biotechnology and bioproducts sector in Nebraska and incentivize the development of renewable chemicals.
Urban Redevelopment Act
The Urban Redevelopment Act allows businesses to earn tax credits for qualified new investments and new full time equivalent employees within an Economic Redevelopment Area.
Additional incentives available in Lincoln
- Community Improvement Financing
Tax increment financing (TIF) of the cost of public improvements for projects located in blighted and substandard areas. Its purpose is to reduce developer capitalization to a level that makes investment feasible. Public improvements include land purchase, clearance and sale, construction of streets, sidewalks, utilities, parks or other similar public spaces necessary in site preparation.
- New Market Tax Credits (NMTC)
The New Markets program helps revitalize targeted urban and rural geographic areas through the retention and creation of jobs, the renovation and expansion of vacant business properties, community facilities, and the purchase of major equipment for business expansion. Eligible borrowers can obtain loans with lower interest rates and terms up to 25 years, creating a lower monthly payment and allowing borrowers to keep more cash in their businesses. The New Markets loan enables borrowers to expand and renovate their existing properties, buy the properties outright, or purchase additional property for business expansion. For loan information link to:
- Capital Gains Exemption
One-time exemption from state personal income tax on gains realized from selling or exchanging stock of a corporation acquired by an employee with the corporation. The corporation must do business in Nebraska for at least three years and must have a minimum of five shareholders. The provision is an excellent recruitment tool for growth-oriented companies that use company stock options as part of employee compensation or retirement programs.
- Nebraska Worker Training Program
Provides grants to assist firms in the retraining and upgrading of existing employees. Grants are awarded on a quarterly cycle. A match of at least one dollar of employer’s funds (including wages for participating employees) for each dollar of state funds is required. Use of program funds is extremely flexible. The type and length of training programs, training vendors and materials are chosen by the company. Click here to learn more about the Worker Training Program.
- Work Opportunity Tax Credit (WOTC)
Provides a credit against federal income tax liability of up to $2,400 for each qualified hire. Qualified employees include 18 to 24-year-old food stamp recipients, disabled persons, low-income ex-felons, and persons receiving SSI benefits. Here is additional information on this program.
- In addition to specific incentives, the business climate is enhanced by:
- No state-levied property tax.
- ‘Sales-only’ corporate income tax apportionment factor.
- No property tax on business inventories.
- No tax on intangibles.
- Performance-based state and local sales tax credits and refunds for qualifying firms.
- Personal property tax depreciation schedules permitting full 100% depreciation.
- No sales tax on electricity, coal, gas and fuel oils when more than one-half used directly in processing or manufacturing.
- No sales or use tax on ingredients used in manufacturing or processing of a product destined for ultimate retail use.
- No sales tax on most food or prescription drugs.
- No sales tax on common carriers’ vehicles and replacement parts.
Sales tax refund on air and water pollution control equipment.
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