Local Incentives

CDBG Community Development Block Grants

Conventional Lenders/Local Development Corporations

Industrial Revenue Bonds

LB840 Local Option Municipal Economic Development Act

TIF Community Improvement Financint (Tax Increment Financing)

Other Finance Programs

Other Nebraska Tax Facts

State Incentives

Employment & Investment Growth Act LB775

Employment Expansion & Investment Incentive Act LB1124, LB270

Invest Nebraska Act LB620

Nebraska Redevelopment Act LB830

Rural Economic Opportunity Act LB936

THE NEBRASKA ADVANTAGE PACKAGE - NEW for 2006!

Work Opportunity Tax Credit

 

 

Twin Cities Development Association, Inc., along with Scotts Bluff County, the Cities of Scottsbluff, Gering, Terrytown, Bayard, Bridgeport, Mitchell and other communities throughout the Valley will work closely with you to ensure the best incentives for your needs.

Each project is considered on a case-by-case basis. Incentives vary and are tailored to meet diverse situations.

 

The City of Scottsbluff administers an economic development program under Nebraska's LB 840. 

This program provides a dedicated stream of sales tax revenue to be used for economic development projects which create jobs in and around Scottsbluff.

Eligible businessses are involved in manufacturing, research/development, transporting and warehousing goods for interstate commerce, sales of interstate services, and telecommunications.

Funding possibilities include cash job credits, the purchase of real estate, the funding of technical assistance, grants for public works development, and relocation assistance.

Requests for funding are reviewed by a committee of local business professionals and are ratified by the Scottsbluff City Council.

The program is expected to generate $700,000 per year, to be used for economic development.

In 1999, Scottsbluff voters approved the extension of the program through the year 2005.

The City of Gering administers an economic development program under Nebraska's Local Option Municipal Economic Development Act (LB 840). 

This program provides a dedicated stream of sales tax revenue to be used for economic development projects which create jobs in and around Gering.  The goal of the program is to provide jobs, above minimum wage, to residents of Gering.  The success of the program is to be measured in jobs created, as well as income improvement.

While the primary focus of Gering's program is to expand and retain existing local businesses and to attract new businesses to Gering, the program can also support projects outside of the corporate boundaries of the City of Gering, provided that the benefit to the City of Gering's economy can be demonstrated.

Eligible businesses are set forth in State statutes and include manufacturing, research/development, transporting and warehousing goods for interstate commerce, sales of interstate services, headquarters facilities, telecommunications, tourism-related businesses, and retail businesses (limited funding).

Funding possibilities include cash job credits, the purchase of real estate, the funding of technical assistance, grants for public works development, and relocation assistance.

Requests for funding are reviewed by a committee of local business professionals and are ratified by the Gering City Council.

The program is expected to generate $300,000 per year, to be used for economic development.

LB 840 FACTS:

• Passed by the Nebraska Legislature in 1991.
• Permits Nebraska cities to commit local sales tax proceeds for the benefit of private businesses.
• Businesses must derive principal source of income from:
  • the manufacturing of articles of commerce
  • the processing, storage, transport or sale of goods or commodities sold or traded in interstate commerce
  • headquarters facilities relating to eligible activities as listed above
  • the conduct of research & development
  • the sale of service in interstate commerce
  • tourism related activities
  • telecommunication activities

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• Administered by the Nebraska Department of Economic Development.
• Applies to all communities in the Valley.
• Must support job-creating activities for low- and moderate-income residents.
• Funds are awarded to local governments to finance programs that accomplish these goals.
• Eligible businesses must be “for-profit” (except in tourism attractions) & engaged in one or more of the following activities:

  .

  • Manufacturing, when the majority of the sales are derived from interstate commerce
  • Services, when the majority of the sales are derived from interstate commerce
  • Research & development, including conducting research, development of research, or scientific or industrial testing
  • Warehousing & distribution, when the majority of revenue is derived from interstate commerce
  • Tourism attractions (for-profit, non-profit, public, or private) to annually draw 2,500 or more visitors from outside of a 100-mile radius. Does not include tourism support facilities such as motels, restaurants, gift shops, or service stations
  • Administrative management headquarters
  • Transportation when the majority of revenue is derived from interstate commerce
  • Dairy operations

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• A method of financing public improvements associated with a private development project in a redevelopment area by using the projected increase in the property tax revenue that will result from the private development.

• Nebraska lenders continue to provide a high-quality service.
• Strong mixture of nationally recognized money center banks and committed rural lenders.

• Issued to finance land, buildings, and equipment for industrial projects.
• The rate of interest on the bonds is normally lower than on most loans.
• Can provide assistance for manufacturing projects.
• Can provide financing of up to $10 million.

 

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State of Nebraska
Tax Incentives For New & Expanding Businesses

 

THE NEBRASKA ADVANTAGE PACKAGE
(effective January 1,2006)

The Nebraska Advantage package was designed to create a business climate that makes Nebraska the preferred location for starting and growing your business. The Nebraska Advantage rewards businesses that invest in the state and hire Nebraskans. In this progressive, pro-business tax climate, corporate income and sales taxes are reduced or virtually eliminated.

Expand or grow your business in Nebraska, and see how it will positively impact your bottom line.

“Each of the components of the Nebraska Advantage package will help keep Nebraska’s economy strong through greater investment in businesses of all sizes and the workforce of tomorrow.” - Governor Dave Heineman

For more information, visit the Nebraska Advantage website at http://www.nebraskaadvantage.biz

Download Nebraska Advantage Brochure:

• 11"x17" .pdf
• 8.5"x11" .pdf

 

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Current Incentive Options:

Employment & Investment Growth Act LB775

Eligible Business Activities: Research & Development Data Processing Telecommunications Insurance Services Financial Services Manufacturing, transportation, warehousing & distribution of tangible personal property Retail sale of tangible personal property if more than 20% is at wholesale, manufactured by seller, or sold to others in a qualified activity Administrative Management or Headquarters Farming, ranching, & livestock operations Non-Qualified	Qualified if you are subject to sales & use taxes and either an income tax or franchise tax. Application required.
Required Levels:	Option 1: Invest $3 million & create 30 new full-time jobs. Tax Benefit: 10% Investment Tax Credit, 5% Annual Job Credit (to be used against income and/or sales tax), also refund of sales tax on most capitalized property. Option 2: Invest $10 million & create 100 new full-time jobs. Tax Benefit: 10% Investment Tax Credit, 5% Annual Job Credit (to be used against income and/or sales tax), also refund of sales tax on most capitalized property PLUS 15 Year Property Tax Exemption on: Turbine-Powered Aircraft Business Computers & Peripherals Agricultural Product Processing Equipment Option 3: Invest a net of $20 million. Tax Benefit: Refund of sales tax on most capitalized property.
Earn Investment Tax Credit On Qualified Property:	Yes
Earn Tax Credit On Employment Growth:	Yes
Reduce Income Tax Liability:	Yes
Entitlement Period:	A company has up to 7 years to attain the thresholds. Upon attainment, it has 7 years to earn and use the benefits. After that, unused credits can be carried over and used for 8 more years

 

Invest Nebraska Act LB620

 

Eligible Business Activities: Research & Development Data Processing Telecommunications Insurance Services Financial Services Manufacturing, transportation, warehousing & distribution of tangible personal property Retail sale of tangible personal property if more than 20% is at wholesale, manufactured by seller, or sold to others in a qualified activity Administrative Management Farming, ranching, & livestock operations Non-Qualified	Non-Metro Qualified if you are subject to sales & use taxes and either an income tax or franchise tax. Application required.	Metro Qualified if you are subject to sales & use taxes and either an income tax or franchise tax. Application required.	Alternative Benefit Qualified if you are subject to sales & use taxes and either an income tax or franchise tax. Application required.
Required Levels:	Invest $10 million and create 25 jobs paying 100% NE average wage. Project must be located in county or counties with less than 100,000 population. Tax Benefit: An Annual Wage Benefit Credit of 3%, 4%, or 5% of compensation paid to Qualified New Employees. If average compensation paid at the project is: Over But Not Over Credit % is $0 $20,000 0% $20,000 $30,000 3% $30,000 $40,000 4% $40,000 - 5% The credit can be used against the company’s income tax or its employee income tax withholding obligation.	Invest $50 million and create 500 jobs OR invest $100 million and create 250 jobs, with all jobs paying 110% NE average wage. Tax Benefit: Same as Non-Metro.	Invest $200 million and create 500 jobs paying 120% NE average wage. Tax Benefit: Same as Non-Metro OR 15% Investment Income Tax Credit
Earn Investment Tax Credit On Qualified Property:	N/A	N/A	Yes
Earn Tax Credit On Employment Growth:	Yes	Yes	Yes
Reduce Income Tax Liability:	N/A	N/A	N/A
Entitlement Period:	A company has up to 7 years to attain the thresholds. Upon attainment, it has 10 years to earn and use the credits. After that, unused credits will be carried over and used for 8 more years.

 

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Employment Expansion & Investment Incentive Act LB1124, LB270

 

Eligible Business Activities: Research & Development Data Processing Telecommunications Insurance Services Financial Services Manufacturing, transportation, warehousing & distribution of tangible personal property Retail sale of tangible personal property if more than 20% is at wholesale, manufactured by seller, or sold to others in a qualified activity Administrative Management Farming, ranching, & livestock operations - Qualified	Qualified if you are subject to sales & use taxes and either an income tax or franchise tax unless exempt under section 521 of IRC. No application required.
Required Levels:	Invest a net of $75,000 and create 2 full-time jobs. Tax Benefit: $1,500 credit per net new employee; $1,000 credit per $75,000 investment. Credits may be used to reduce a portion of the taxpayer’s income tax liability or to obtain a refund of sales & use taxes paid. Credits are claimed on the income tax return for the taxpayer. No application is required. Credits not used in the first year may be carried over and used against liabilities incurred in the next five taxable years.
Earn Investment Tax Credit On Qualified Property:	Yes
Earn Tax Credit On Employment Growth:	Yes
Reduce Income Tax Liability:	Yes
Entitlement Period:	A single tax year. After that, unused credits can be carried over and used for 5 more years.

 

Rural Economic Opportunity Act LB936

 

Eligible Business Activities: Research & Development Data Processing Telecommunications Insurance Services Financial Services Manufacturing, transportation, warehousing & distribution of tangible personal property Retail sale of tangible personal property if more than 20% is at wholesale, manufactured by seller, or sold to others in a qualified activity Administrative Management Farming, ranching, & livestock operations - Non-Qualified	Qualified if you are subject to sales & use taxes and either an income tax or franchise tax or a subchapter T cooperative. Application required.
Required Levels:	County specific levels, based on increasing full-time equivalent employment, dollar investment or average annual wage. Tax Benefit: Credits may be used after other non-refundable credit to pay up to 100% of Nebraska unitary income tax liability. Dependent upon county location; check with the Department of Economic Development for full details.
Earn Investment Tax Credit On Qualified Property:	Yes
Earn Tax Credit On Employment Growth:	Yes
Reduce Income Tax Liability:	Yes
Entitlement Period:	10 tax years.

 

NEBRASKA REDEVELOPMENT ACT LB830

• No property tax on business inventories including raw materials, goods in process, & finished goods.
• No sales or use tax on energy when more than ½ is used directly in processing or manufacturing.
• Sales tax refund on air & water pollution control equipment.
• No state property tax.
• No tax on intangibles.
• Performance-based state & local sales tax credits & refunds for qualifying firms.

• No sales tax on common carriers’ vehicles & replacement parts.
• No sales or use tax on ingredients used in manufacturing or processing of a product destined for ultimate retail use.
• No sales tax on food, prescription drugs, or services.

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OTHER FINANCE PROGRAMS:

Rural Development (USDA) and U.S. Small Business Administration
Have additional financing programs available for businesses.
www.usda.gov
www.sba.gov

The Small Business Innovation Research Program (SBIR)
Backs research & development projects.
www.sba.gov

The Nebraska Energy Fund
Provides low-interest loans for energy efficiency improvements.
www.nol.org/home/NEO

Local Revolving Loan Funds
Established by many communities to assist with business development.

Nebraska Enterprise Zones
Within Nebraska’s Enterprise Zones, special tax credits are given
for qualifying businesses that increase employment & make investments in the area.

• 3,000 PER EMPLOYEE HIRED   minimum of 5 employees to qualify for incentive