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(developed by the Scottsbluff/Gering Chamber of Commerce, TCD, & the City of Scottsbluff)
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Financing & Incentives
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:
State
of Nebraska
THE NEBRASKA ADVANTAGE PACKAGE 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:
Current Incentive Options: Employment & Investment Growth Act
LB775
Employment Expansion & Investment Incentive Act LB1124, LB270
Rural Economic Opportunity Act LB936
Capital Gains Exemption: Nebraska law provides for a one-time exemption from state income tax of gains realized from selling or exchanging stock of a corporation acquired by an employee who is a Nebraska resident during employment with that corporation. Corporate Income Tax: Corporations doing business both within and outside Nebraska allocate their income in accordance with the provisions of the Uniform Division of Income for Tax Purposes Act. Corporations pay 5.58% on the first $50,000 and 7.81% over $50,000 based on federal taxable income attributable to Nebraska operations. General Tax Incentives:
Personal Income Tax: Personal property tax depreciation schedules permitting full 100% depreciation. Property Tax: Nebraska has NO property tax. Real estate & personal property taxes in Nebraska are levied by county & municipal subdivisions, including school districts. Total levies are determined by the needs of each political entity and generally range from $1.75 to $3.00 per $100 of actual valuation. There is no tax on intangibles. Sales & Use Tax: The present sales & use tax rate is 5% plus an additional
0.5%
Unemployment Compensation: The standard contribution rate for a new Nebraska employer is 3.5% of the first $7,000 of wages paid each person employed during the year. In 2001, the average rate on taxable payroll was 0.7% - one of the lowest in the nation.
Rural
Development (USDA) and U.S. Small Business Administration The
Nebraska Energy Fund Local
Revolving Loan Funds Nebraska
Enterprise Zones
The Work Opportunity Tax Credit (WOTC) is a federal tax credit program available to employers who hire employees from eight “targeted” groups. These are groups that have historically had difficulty finding employment. The credit is used to reduce the federal tax liability of private – for-profit employers. This program covers only new hires, i.e., the person may not have worked for that employer in the past. Under the provisions of the Taxpayer Relief Act of 1997, employers can claim a maximum federal income tax credit of $2,400 per eligible worker. This is the full WOTC tax credit of 40% of the first $6,000 in wages paid within one year of hire. The employee must be employed for 400 hours. A partial WOTC tax credit is available for applicants who work at least 120 hours but less than 400 hours. This credit is 25% of the first $6,000 in wages paid within one year of hire. In the case of the Summer Youth target group, the wages on which the tax credit is calculated are lilmited to $3,000, with the full tax credit maximum being $1,200 and the partial tax credit maximum being $750 for this group. EIGHT WOTC TARGET GROUPS
Copyright © 2002-2003 Twin Cities Development Association, Inc. |
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