Other State and Federal Incentives

State Incentive Programs

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 Development Resources (CDR): Technical assistance, training, and access to capital for new and existing businesses.
Go to: Community Development Resources

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.
Go to: Nebraska Economic Development Corporation

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.
Go to: Nebraska Worker Training Program

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.
Go to: Work Opportunity Tax Credit

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.

Federal Incentive Programs

USDA: Red Willow County is defined as rural by USDA and as such is eligible for a variety of USDA incentives. One such program is the Business and Industry Guaranteed Loan program. B&I loans are available through traditional lenders, which can be used for real estate up to 30 years, equipment 15 years and working capital 7 years. Guarantee percentage based upon the risk of the business and total amount of the loan request; one time 2% guarantee fee, 80% guarantee on loan up to $5 million, 70% on $5-10 million and 60% on $10-25 million; minimum tangible net worth requirement – 10% for existing businesses and 20-25% on new businesses.