Invest Nebraska Act
Description of Benefits

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General Information:

The Invest Nebraska Act (LB 620) allows a qualified business to receive a wage benefit credit, or an alternate investment credit. The Invest Nebraska Act required a separate application subject to approval by the Invest Nebraska Board.  The members of the board were the Governor, the State Treasurer, and the chairperson on the Nebraska Investment Council. 

Application Information:

No new applications could be filed after June 1, 2005.

Requirements by Application Level:

There are three levels that qualified businesses could choose from:

  • $10 million in investment in qualified property and at least 25 new full time equivalent (FTE) employees whose annual wage exceeds the Nebraska average annual wage. This option is only available for projects located outside of counties with 100,000 or more in population.
  • $50 million in investment in qualified property and at least 500 new FTE employees, OR $100 million in investment and at least 250 new FTE employees. The new employees’ annual wage must exceed 110% of the Nebraska average annual wage.
  • $200 million investment in qualified property and at least 500 new FTE employees, whose annual wage exceeds 120% of the Nebraska average annual wage.

Description of Benefits:

A company that reaches and maintains the selected levels is eligible for benefits. An eligible company earns a wage benefit credit from zero to five percent of the taxable wages paid to new employees earning more than the required wage level. A company selecting the $200 million and 500 FTE option may receive, in lieu of a wage benefit credit, an alternate investment tax credit of 15 percent of the investment.

The company is to expend at least the value of the wage benefit credit, or alternate investment tax credit, for company training programs, employee benefit programs, educational institution training programs, or workplace safety programs. 

The agreement specifies the option elected and the available benefits. The wage benefit credit and the alternative investment tax credit may be used for up to 100% of the income tax liability. The wage benefit credit may also be used to retain a portion of the taxpayer's employer payroll withholding tax liability.

Activity as of December 31, 2009:

Qualified investment and new jobs were reported and credits were allowed. However, to maintain confidentiality, no information is reported due to the small number of companies receiving benefits.

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