Taxes & Incentives

MANUFACTURING EXCELLENCE: Lincoln is home to a number of well-known manufacturing companies including Kawasaki’s North American assembly plant, makers of Jet Skis, ATV’s, Mules and rail cars.

http://static1.vipasuite.com/resources/1219960439497/files/77286/_fn/content_kawasaki-4wheel-02_03.jpg MANUFACTURING EXCELLENCE: Lincoln is home to a number of well-known manufacturing companies including Kawasaki’s North American assembly plant, makers of Jet Skis, ATV’s, Mules and rail cars. 521.0px,255.0px MANUFACTURING EXCELLENCE: Lincoln is home to a number of well-known manufacturing companies including Kawasaki’s North American assembly plant, makers of Jet Skis, ATV’s, Mules and rail cars.
http://static1.vipasuite.com/resources/1219948542944/files/76935/_fn/content_les01_03.jpg AFFORDABLE ENERGY: Lincoln Electric System commercial and industrial customers enjoy rates 35 percent below the national average. 521.0px,255.0px AFFORDABLE ENERGY: Lincoln Electric System commercial and industrial customers enjoy rates 35 percent below the national average.
http://static3.vipasuite.com/resources/1220033492053/files/44846/_fn/content_pic2_05.jpg BIOTECHNOLOGY: Lincoln provides world class research at the University of Nebraska as well as the opportunity to be part of a corporate community that is home to companies such as Pfizer, Novartis and MDS Pharma Services. 520.0px,255.0px BIOTECHNOLOGY: Lincoln provides world class research at the University of Nebraska as well as the opportunity to be part of a corporate community that is home to companies such as Pfizer, Novartis and MDS Pharma Services.
http://static1.vipasuite.com/resources/1219960439617/files/77282/_fn/content_raikes_03.jpg I.T. & BUSINES EXCELLENCE: Programs such as the UNL Jeffrey S. Raikes School of Computer Science and Management provide excellent resources for skilled workers ready to take on 21st century challenges. 521.0px,255.0px I.T. & BUSINES EXCELLENCE: Programs such as the UNL Jeffrey S. Raikes School of Computer Science and Management provide excellent resources for skilled workers ready to take on 21st century challenges.

Taxes

Sales Tax: 7.0% (5.5% State; 1.5% City of Lincoln)

Individual Income Tax: Marginal individual income tax rates range from 2.56 to 6.84 percent. There is no local income tax in Lincoln.

Corporate Income Tax Rates: 5.58% for the first $50,000 of the federal taxable income and $2,790 + 7.81% in excess of $50,000.

Property Tax Levy, 2007: 2.009031

Based on 100% of appraised valuation

Incentives

A variety of state and local incentives, training, and financing assistance are designed to attract and retain businesses in Lincoln.

Nebraska Advantage a comprehensive package of economic development incentives. Nebraska Advantage contains 6 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.

Super Tier 6 – $10 mil investment/75 jobs or $100 mil investment/50 jobs: Offers 15% investment tax credit, 10% jobs credit on wages above specific threshold, sales tax refunds for capital purchases at the project, and personal property tax exemption up to 10 years.

Other components of Nebraska Advantage include:
Research and Development Advantage: Allows a research tax credit to business firms that increase research expenditures in Nebraska. 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

Customized Job Training Program: Provides training assistance to qualifying companies that sell goods/services primarily to a non-Nebraska market. more

For more information contact Jason Smith, 402.436.2373.

Other incentives include:

Community Improvement Financing: Tax increment financing (TIF) of the cost of public improvements for projects located in blighted and substandard areas. 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.

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.

City/County Economic Development Loan Program: Loans for job creation and building improvement.

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For more information about Lincoln see our Economic & Demographic Profile

Lincoln Partnership for Economic Development

Taxes

Incentives