SPOTLIGHT PROGRAMS

ImagiNE Nebraska Act: The ImagiNE program offers a menu of potential incentives for qualifying projects including wage and investment credits, sales/use tax refunds, and personal property tax exemptions. Wage and investment credits are issued one time and can be used against the company’s state tax liability including corporate income taxes, employee withholdings taxes, and sales and use taxes. Additionally, credits can be used to reimburse costs incurred for job training, recruitment, and childcare expenses. A list of the various program categories is listed below:‍

• ‍Economic Redevelopment Areas: Projects creating at least 5 new jobs paying 70% of the state average wage, investing $250,000 to $1 million, and locating within a qualifying area are eligible to receive a 6% wage credit and a 4% investment credit. ‍
• Manufacturing Growth & Expansion (Rural): Manufacturing projects locating in a qualifying rural county that create at least 5 new jobs paying 70% of the state average wage and investing at least $1 million are eligible to receive a 4% wage credit and a 4% investment credit. Projects are eligible for an additional 3% investment credit bonus for investments greater than $10 million.‍
• Manufacturing Growth & Expansion (Urban): Manufacturing projects locating in a qualifying urban county that create at least 10 new jobs paying 75% of the state average wage and investing at least $1 million are eligible to receive a 4% wage credit and a 4% investment credit. Projects are eligible for an additional 3% investment credit bonus for investments greater than $10 million.‍
• Growth & Expansion: Projects locating anywhere in the state that create at least 10 new jobs paying 90% of the state average wage and investing at least $1 million are eligible to receive a 4% wage credit and a 4% investment credit.‍
• Quality Jobs: Projects locating anywhere in the state that create at least 20 new jobs paying 100% of the state average wage are eligible to receive a 5% wage credit. A 2% wage credit bonus is available for projects paying 150% of the state average wage and an additional 2% wage credit bonus for projects exceeding 200%.‍
• Quality Jobs Investment: Projects locating anywhere in the state that create at least 30 new jobs paying 100% of the state average wage and investing at least $5 million are eligible for the Quality Jobs incentives described above (including bonuses) in addition to a 9% investment credit, 100% sales/use tax refund, and a personal property tax exemption on qualifying ag processing and data center equipment.‍
• Mega-Project: Projects locating anywhere in the state that create at least 250 new jobs paying 150% of the state average wage and investing at least $250 million are eligible to receive a 9% wage credit, a 7% investment credit, 100% sales/use tax refund, and a property tax exemption on all personal property. A 2% wage credit bonus is available for projects paying 200% of the state average wage.‍
• Modernization: Projects locating anywhere in the state that invest at least $50 million and are paying 150% of the state average wage are eligible for a 100% sales/use tax refund and a personal property tax exemption on qualifying ag processing and data center equipment.

An additional 1% bonus may apply to the wage and investment credits if the project either locates in an extremely blighted area or if the company is a benefit corporation.

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TAX EXEMPTIONS

Sales Tax Exemptions: Purchases of manufacturing machinery, equipment, and related services may be entitled to exemptions from state and local sales tax.

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DIRECT FINANCIAL ASSISTANCE

Site & Building Development Fund: Provides funding to enhance site readiness and offset upfront development costs for eligible projects. The fund requires a 50% match and is relatively flexible for uses. Eligible activities may include land and building acquisition, building construction or rehabilitation, infrastructure development and improvements, among other things. Grants are awarded to projects based on need and impact, including jobs and investment.

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‍Economic Opportunity Program: This program provides grant funding for projects with transportation improvement needs, either roads or rail. A matching grant requirement of 25% is required from companies, with applicants being local public entities. Grants are typically below $500,000.‍

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Academic R&D Program: The program offers businesses in Nebraska a matching competitive grant for R&D activities done in conjunction with a Nebraska college or university. Matching requirements are based on industry. Grants are awarded in two phases. Phase I is capped at $100,00 and Phase II at $400,000. Businesses cannot apply for Phase II until Phase I is complete.

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JOB TRAINING

Nebraska Customized Job Training Program: This program provides employee training assistance to businesses that maintain, expand, and diversify the state’s economic base and, in the process, create quality jobs for Nebraska residents. The program provides flexible and discretionary grants ($800-$4,000) per new qualified job, depending upon wage level, and availability of funding. ‍

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Nebraska Worker Training Program: This program supports the training and upgrading of Nebraska’s current workforce. All established, for-profit Nebraska businesses that contribute to the State’s Unemployment Insurance Trust (SUIT) fund are eligible to apply for funding through the program. The participating company must commit to a minimum $1 for $1 match for the funding requested. Total matching requirement is dependent on an economic development impact report.

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Last Updated: May 2023