Nebraska State Tax Credits

More ways to save your hard-earned money from the tax man!

Nebraska has some great State Tax Credits for you....

Thank you so much for checking our resource out here for your state and congratulations for taking a proactive step to paying less in taxes. For your state, we have identified the tax credits that are currently being offered to help you pay less in state taxes.

We hope this resource is helpful to you, and if there is something you feel we have missed, please let us know!

It would be completely arrogant of us to think that we know all things and if we missed something we want to know so we can vet that and help you and our other friends in the entrepreneurial community pay less in taxes! And if you found this helpful, you should check out our DIY resources inside of our Tax Savings Communities (found at www.MakeTaxesFair.com/Our-Communities).

We're also ready to help you if you want to skip the line of the DIY process and get help directly from us. To learn more about how we help our clients check out www.MakeTaxesFair.com/Get-My-Roadmap

 
Nebraska

ImagiNE Nebraska Act

Overview:
The ImagiNE Nebraska Act offers performance-based tax incentives to businesses that invest in Nebraska by adding full-time employees and capital investment at qualified locations. Benefits include tax credits, sales tax refunds, and wage reimbursements that support job growth, infrastructure, and workforce development.

Who It’s For:
Businesses looking to expand, relocate, or invest in Nebraska and meet thresholds for new full-time equivalent (FTE) hires and qualified capital investments within four years of application.

Four Key Highlights:

  1. Tiered Incentive Structure
    – Eight application levels with different thresholds allow small startups to large corporations to qualify based on FTEs, wage levels, and investment size.

  2. Wide Range of Credit Uses
    – Credits can be used to offset income and withholding tax, reimburse training, relocation, or student loan assistance, and support childcare or down-payment aid.

  3. Export-Oriented Business Advantage
    – Companies generating 75%+ of their revenue from out-of-state sales may qualify under the 75% Export Exception rule, broadening eligibility.

  4. Bonus Credits for Strategic Initiatives
    – Earn an additional 1% in credits if the project is in an extremely blighted area or operated by a benefit corporation, rewarding socially focused and high-need area growth.

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Nebraska New Markets Job Growth Investment Tax Credit

Overview:
This credit supports economic development in low-income areas by offering nonrefundable tax credits to investors who make qualified equity investments (QEIs) in certified Community Development Entities (CDEs) that fund businesses in Nebraska’s underserved communities.

Who It’s For:
Nebraska-based investors—including individuals, corporations, trusts, financial institutions, and insurance companies—who invest in federally recognized CDEs targeting low-income business growth in the state.

Four Key Highlights:

  1. Credit Timeline and Structure
    – No credits in the first two years; then 7% in Year 3 and 8% annually in Years 4 through 7, totaling 39% of the original investment over seven years.

  2. Strict Investment Conditions
    – Investments must be cash-only, held for the full 7-year term, and made through a certified CDE actively investing in Nebraska’s low-income communities.

  3. Annual Reporting and Recapture Risk
    – CDEs must file annual reports from Years 2–7; noncompliance, premature redemptions, or federal NMTC recapture triggers state-level credit clawbacks.

  4. Nonrefundable and Nontransferable Credit
    – Credits can’t be sold or refunded but may be carried forward for up to five years if not fully used in the year earned.

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Nebraska Advantage Research and Development Act

Overview:
This program offers Nebraska businesses a tax credit for qualified research and experimental (R&D) expenditures made within the state. Credits are based on a percentage of the federal R&D tax credit and can be significantly higher for research conducted on college or university campuses.

Who It’s For:
Businesses conducting qualified R&D activities in Nebraska—including those partnering with Nebraska-based colleges and universities.

Four Key Highlights:

  1. 15% or 35% Credit Based on Location
    – Businesses earn a 15% credit based on the federal R&D credit; those conducting research on a Nebraska college/university campus can earn a 35% credit.

  2. Extended Credit Use Window
    – Standard 15% credit is available for up to 20 years; the 35% campus-based credit can be claimed for up to 4 years, provided research continues.

  3. Flexible Credit Application
    – Credits may be used for income tax or as refunds on Nebraska sales and use taxes paid.

  4. Mandatory E-Verify Compliance
    – Businesses must use E-Verify for all new Nebraska hires (after October 1, 2009) to remain eligible for the credit.

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