Nebraska Governor Dave Heineman was joined by legislative leaders to sign into law a new generation of benefits designed to enhance Nebraska's competitive edge in expanding existing businesses and attracting new opportunities to the state.

Neb. Gov. Dave Heineman, with legislative leaders, signs Nebraska's new generation of incentives into law.

The Nebraska Advantage, Nebraska's new incentive package, emphasizes capital investment, the creation of jobs, innovation and, in addition, provides for the training of workers who take those jobs.
      "The new Nebraska Advantage package was designed to create a business climate that makes our state a preferred location for starting and growing a business. We've seen businesses and industries develop and evolve to meet the diverse needs of their customers. They represent the cutting edge in their industries and have gained reputations for innovation. That is why it is so important for Nebraska to have taken this action to support the innovation being fostered by these companies. That is what this new package will do," said Gov. Heineman. "This truly is an important moment for pursuing greater economic vitality for Nebraska. It is gratifying to know that this package addresses the needs of businesses and communities of every size, from fledgling entrepreneurs to large corporations in rural villages as well as metropolitan cities. Notably, it will provide a more equitable playing field for our small businesses trying to compete in the global marketplace."
      The long-term goals of the Nebraska Advantage package are to promote growth of existing companies through job retention and new capital investments; increase the number of successful startup business ventures in the state; foster the

The Nebraska Advantage package provides many components, including an expanded "5-Tier" benefits system:

Tier 1 — $ 1 million new investment and 10 new jobs — Qualifying businesses under this tier are eligible for a refund of 1/2 of the sales tax paid for qualified property purchases at the project, a full sliding scale wage credit of 3,4,5 or 6% depending on wage level, and a 3% investment tax credit. This tier is available to manufacturers, research and development or testing businesses, and listed technology-related services where at least 75% of the sales and licensing are to out of state customers or to the federal government.       Tier 2 — $3 million new investment and 30 new jobs — This tier qualifies for sales tax refunds of capital purchases at the project, the sliding scale wage credit and a 10% investment credit.       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 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 for turbine-powered aircraft, mainframe computers, agricultural product processing machinery and personal property used in a distribution facility.       Tier 5 — Investment only tier — Requires $30 million in new investment and no new jobs. Companies receive a refund of sales taxes paid on eligible property with the project.

commercialization of new products and ideas; and recognize the different needs of Nebraska's industries.
      "Nebraska Advantage improves Nebraska's tax climate, and rewards businesses that invest in the state and hire Nebraska's high quality workforce. Through Nebraska's new progressive, pro-business program, companies will receive reduced or virtually eliminated corporate income and sales taxes, and credit for employee withholding," said Richard Baier, director of the Nebraska Department of Economic Development.
      The Nebraska Advantage package contains many other benefits including:

• Nebraska Customized Job Training Advantage ... provides a flexible and discretionary job training program that will provide $15 million in new customized job training assistance.
• Nebraska State and Local Sales Tax Exemptions of Manufacturing Machinery, Equipment and Related Services ... exempts expenditures on manufacturing machinery, equipment, and related services from state and local sales taxes.
• Nebraska Research and Development Advantage ... offers a tax credit for research and development activities undertaken by any business entity. The credit is equal to 3 percent of research and development expenditures that are greater than the average of the previous two years research and development spending. An important feature — businesses with little or no income may take advantage of the tax credit by receiving a sales tax refund or a refundable income tax credit.
• Nebraska Microenterprise Tax Credit Advantage ... provides a 20 percent refundable investment tax credit to micro businesses on new investment in targeted communities. Applicants may qualify for a maximum $10,000 throughout the life of the program. The credit is geared to companies with five or fewer employees, including start-ups. The credits would apply to new expenditures for wages, buildings, and non-vehicle depreciable personal property.
• Inventory Tax Exemptions ... business inventories are exempt from property and inventory taxes.

      "Each of these components will help keep Nebraska's economy strong through greater investment in businesses of all sizes and the workforce of tomorrow," Gov. Heineman said.