Nebraska Advantage Rural Development Act Tax Credits
Nebraska Department of Revenue
$3,000/FTE + $2,750/$50K invest
NE rural expansion tax credits — $3K per new job
The Nebraska Advantage Rural Development Act provides investment and employment tax credits to businesses that expand operations, create jobs, and increase capital investment in Nebraska's rural counties. Level 1 requires $125K+ in new investment and 2+ new FTEs; Level 2 requires $250K+ and 5+ FTEs. Credits earn $3,000 per new FTE and $2,750 per $50,000 of net investment. A separate livestock modernization track covers equipment upgrades on livestock operations.
- Funding type
- Tax Credit
- Level
- State
- Amount
- Employment credit: $3,000 for each new full-time equivalent employee earning at least $20.22/hour (2026 wage floor). Investment credit: $2,750 for each $50,000 in net new capital investment. Livestock Modernization applications capped at $150,000 in credits. Credits are refundable to the extent they exceed the applicant's Nebraska income tax liability.
- Realistic amount
- A Level 2 business adding 10 new FTEs and $500,000 in new equipment would earn $30,000 in employment credits + $27,500 i…
- Deadline
- Rolling — applications accepted year-round from the Nebraska Department of Revenue.
- Status
- active
- States
- NE
- Payment model
- tax offset
Who qualifies
- Business operating in Nebraska in an eligible rural county
- Level 1: minimum $125,000 in new capital investment AND 2 new full-time equivalent employees at $20.22+/hour (2026 wage floor)
- Level 2: minimum $250,000 in new capital investment AND 5 new full-time equivalent employees at $20.22+/hour
- Livestock Modernization track: for livestock production operations making qualifying equipment and facility upgrades
- Business must be incorporated or authorized to transact business in Nebraska
- Employment and investment growth measured against a base year established at application date
- Must maintain at least 75% of approved investment and 75% of approved employment — or all credits are clawed back
Hard requirements
- Must be incorporated
- Location restriction: Rural Nebraska county
- Requires creating at least 2 new jobs
What it covers
Eligible expenses
- New manufacturing or processing equipment and machinery
- Construction of new production facilities or expansion of existing buildings
- Livestock facility upgrades and modernization equipment (Livestock Modernization track)
- Qualified capital improvements to existing rural Nebraska operations
- New full-time employee wages (for employment credit calculation)
Ineligible expenses
- Existing employee wages (only net new FTEs count for employment credits)
- Equipment or facilities purchased before the application date (pre-dates the base year)
- Investment in operations outside Nebraska rural counties
- Non-qualifying operational expenses (inventory, marketing, working capital)
How to apply
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1
Submit application to Nebraska Department of Revenue
File the Level 1/Level 2 application (or Livestock Modernization application) with the Nebraska DOR. The application date becomes the base year for measuring investment and employment growth. Submit all required documents to avoid an incomplete-application date delay.
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2
Execute agreement with Nebraska DOR
Upon approval, DOR issues a written agreement specifying the approved investment and employment targets, timelines, and credit rates. Agreement is based on projected figures — actuals are measured at audit.
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3
Implement capital investment and hire qualifying employees
Purchase equipment, build facilities, or make qualifying capital investments. Hire new full-time employees at or above the required wage ($20.22/hour for 2026 applications). Document all costs and payroll records.
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4
Complete verification workbooks annually
Submit annually to DOR via the ShareFile portal: Worksheet 1 (investment calculation), Worksheet 2 (employment calculation), and Worksheet LM (Livestock Modernization, if applicable). DOR verifies actuals against agreement targets.
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5
Claim credits on Nebraska income tax return
DOR issues credit certificates based on verified workbooks. Credits are applied to Nebraska income tax returns. Excess credits beyond tax liability are refunded.
File before year-end: if you submit an incomplete application near December 31 and it isn't completed until January, your base year shifts — costing you a full year of credit accumulation. File early with all documents in hand.
Deadline & timing
Applications are accepted on a rolling basis. The application date is the date on which the complete application (with all required documents) is received by the Department. Incomplete applications near year-end can shift the base year, affecting credit calculation.
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Last reviewed 2026. GrantCompass is an independent funding-discovery tool and is not affiliated with any government agency. Always confirm details on the official program page.