Nebraska – Nebraska Advantage Act Requirements for 2012

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SALT Report 1279 – The Nebraska Department of Revenue released guidance regarding the Nebraska Advantage Act and the new Super Advantage Tier 6. Beginning January 1, 2012 an applicant must meet the following average annual wage and investment requirements to qualify for benefits.

Tier 1 – $1 million of new investment and 10 new jobs

Qualifying businesses under this tier are eligible for a refund of ½ of the sales tax paid for qualified capital purchases at the project, the full sliding scale wage credit of 3, 4, 5 or 6% depending on wage level, and a 3% investment tax credit.Tier 2 – $3 million of new investment and 30 new jobs

This tier qualifies for refund of all sales taxes for capital purchases at the project, the sliding scale wage credit and a 10% investment credit. Additional benefits include a personal property tax exemption for computer systems for internet web portals or data centers.

Tier 3 – Jobs only tier

For the creation of 30 new jobs, the company receives the sliding scale wage credit. No capital investment is required.

Tier 4 – $10 million in investment and 100 new jobs

In addition to the sales tax refund, jobs credit, and the investment credit, qualifying businesses under receive a personal property tax exemption on turbine-powered aircraft, personal computer systems, agricultural product processing machinery and personal property used in a distribution facility for up to 10 years.

Tier 5 – Investment only

This tier requires $30 million in new investment and no new jobs. Companies receive a refund of all sales taxes paid on capital purchases with the project. Additional benefits include a personal property tax exemption for computer systems for internet web portals or data centers.

Super Tier 6 – $10 million in investment and 75 new jobs or $100 million in investment and 50 new jobs

Any business activity other than retail qualifies and will receive a refund of all sales tax on capital purchases. A 10% job credit on new employee compensation provided that compensation is greater than 200% of the county average wage or 150% of the Nebraska average wage. Additional benefits include a 15% investment credit, and a personal property tax exemption for all personal property at the project for up to 10 years.

For Further Information:

Nebraska Department of Revenue – Revenue Ruling 29-11-2

Nebraska Advantage