Some key tax related items to consider include:
- No state property tax.
- No inventory tax.
- No personal property tax on intangibles.
- No sales tax on:
- Raw materials when used as ingredients or component parts in manufacturing.
- Sales of energy for processing or manufacturing purposes.
- Water used exclusively in manufacturing and processing.
- Qualified agricultural machinery and equipment.
- Manufacturing machinery, equipment and related services.
The Nebraska Advantage Package is Nebraska’s comprehensive economic development program designed to meet the needs of expanding or relocating businesses. Sales and use tax refunds, wage credits, investment credits and personal property tax exemptions are possible benefits that a qualified company can receive depending on the tier in which it qualifies.
The Nebraska Advantage Act multi-tiered benefits include:
Tier 1 – $ 1 million 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 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. Also includes a personal property tax exemption on computer systems for Internet web portal or data center.
Tier 2 – $200,000,000 new investment and 30 new jobs at data center
This new tier qualifies for refund of all sales and use taxes on project’s tangible personal property from the date of acquisition through the entitlement period, the sliding scale wage credit, and a 10% investment credit. Also includes a personal property tax exemption up to 10 years on all project’s personal property.
Tier 3 – 30 new jobs (no investment)
For the creation of 30 new jobs, the company receives the sliding scale wage credit. No capital investment is required.
Tier 4 – $12 million new investment and 100 new jobs
In addition to the sales tax refund, jobs credit, and the investment credit, qualifying businesses under this tier 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 – $37 million new investment and must maintain employment
Companies receive a refund of all sales taxes paid on capital purchases with the project. Also includes a personal property tax exemption on computer systems for Internet web portal or data center.
Super Tier 6 –
$10 million new investment and 75 new jobs OR
$109 million new investment and 50 new jobs
Any business activity other than retail qualifies. Refund of all sales tax on projects capital purchases, 10% job credit on new employee “compensation”—wage thresholds per new position are the greater of 200% of the county average wage OR 150% of the Nebraska average wage, 15% investment credit, and personal property tax exemption for all personal property at the project for up to 10 years.