A variety of state and local incentives, training, and financing assistance are designed to attract and retain businesses in Gothenburg.
Nebraska Advantage a comprehensive package of economic development incentives. Nebraska Advantage contains 5 tiers of benefit:
Tier 1 - $1 mil investment/10 new jobs: Refund of 1/2 of the sales tax paid for qualified property 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. 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 mil investment/30 new jobs: Sales tax refunds for capital purchases at the project, the sliding scale wage credit and a 10% investment credit.
Tier 3 - Jobs only: Requires creation of 30 new jobs. Companies receive the sliding scale wage credit. No capital investment is required.
Tier 4 - $10 mil investment/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 for up to 10 years.
Tier 5 - Investment only/no jobs: Requires $30 million in new investment. Companies receive a refund of sales taxes paid on eligible property with the project.
Other components of Nebraska Advantage include:
Research and Development Advantage: Provides a tax credit for research and development activities by any business entity. Allows a research tax credit to business firms that increase research expenditures in Nebraska. The credit is equal to 3% of any research and development expenditures that are greater than the average of the previous two years research and development spending. An important feature is that business with little or no income may take advantage of the income tax credit by receiving a sales tax refund or a refundable income tax credit.
State and local sales tax exemptions of manufacturing machinery, equipment, and related services: Manufacturing machinery and equipment is defined to include: equipment for transporting raw materials or components, molds and dies for forming cast or injected products or its packaging materials, machinery to maintain the integrity of the product or environmental conditions, testing equipment for quality control, computers that control a manufacturing process, machinery used to produce steam, electricity, catalysts, and solutions, repair or replacement parts, and all installation, repair and maintenance service performed on such equipment.
Other incentives include:
Capital Gains Exemption:
One-time exemption from state personal income tax on gains realized from selling or exchanging stock of a corporation acquired by an employee with the corporation. The corporation must do business in Nebraska for at least three years and must have a minimum of five shareholders. The provision is an excellent recruitment tool for growth-oriented companies that use company stock options as part of employee compensation or retirement programs.
Industrial Development Bonds (NIFA):
Designed to encourage economic and industrial development through the investment of private capital. Industry targets include manufacturing, warehousing, transportation, and tourism and recreation services.
Community Improvement Financing:
Tax increment financing of the cost of public improvements for projects located in blighted and substandard areas. Its purpose is to reduce developer capitalization to a level that makes investment feasible. Public improvements include land purchase, clearance, and sale and construction of streets, sidewalks, utilities, parks or other similar public spaces necessary in site preparation.
Nebraska Economic Development Corporation (NEDCO):
State-chartered nonprofit corporation that provides long-term capital loans to businesses unable to secure regular bank credit. NEDCO can make long-term loans (up to 20 years) to eligible small businesses for fixed asset projects. Financing is limited to 40 percent of the project's total cost up to $750,000 or $35,000 per job created or retained. Revolving loan fund financing is limited to $150,000 or 75 percent of the project cost not to exceed $15,000 per job created or retained. more
Customized Job Training Program: Provides training assistance to qualifying companies that sell goods/services primarily to a non-Nebraska market. Eligible training projects include new investment in Nebraska that create jobs or require retraining of existing positions in order to retain those positions in Nebraska. The average wage level of all jobs created or retained must equal or exceed the average wage for job openings in that area.
Nebraska Worker Training Program:
Provides grants to assist firms in the retraining and upgrading of existing employees. Grants are awarded on a quarterly cycle. A match of at least one dollar of employer's funds (including wages for participating employees) for each dollar of state funds is required. Use of program funds is extremely flexible. The type and length of training programs, training vendors, and materials are chosen by the company. more
Work Opportunity Tax Credit (WOTC):
Provides a credit against federal income tax liability of up to $2,400 for each qualified person hired. Qualified employees include 18- to 24-year-old food stamp recipients, disabled persons, low-income ex-felons, and persons receiving SSI benefits. more