Nebraska Legislature Passes New Super Advantage Incentives


by Matt Ottemann

Ottemann, Matthew
mottemann@mcgrathnorth.com
(402) 341-3070

In the last legislative session, the Nebraska Legislature passed an update to the Nebraska Advantage program which provides for enhanced incentives (“Super Advantage”) for companies which create either 75 new high-paying jobs and make a $10 million capital investment or create at least 50 new jobs and make a $100 million capital investment in Nebraska.

High-paying jobs, for purposes of the Super Advantage program, pay the greater of either 200% of the average wage in the county where the project will be located or 150% of the state’s average wage.  For projects in Douglas County, a qualifying job for new projects must pay at least $80,004 (200% of the average wage in Douglas County).

A company qualifying under the Super Advantage program may receive the following incentives:

• 15% Investment Tax Credit (instead of 10%)

• 10% Wage Credit (instead of 3-6% depending upon wages)

• 10 year property tax exemption on all personal property located at the project site (previously limited to certain types of personal property)

• Sales tax refund on all qualifying investments at the project

• Use of the tax credits against the company’s Nebraska income tax, sales tax, employee withholding, and real property taxes for pieces of new real property located at the project site (instead of just the company’s income, sales, and withholding taxes)

The Attainment Period for the Super Advantage incentives is 5 years.  Companies have a 10 year Entitlement Period (to earn and use their incentives) under Super Advantage (instead of 6-7 years under other tiers of the Nebraska Advantage Program).  However, companies have only a 1 year Carryover Period to use remaining credits after the Entitlement Period.

There is a $10,000 fee to apply for the Super Advantage incentives.

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