active State Tax Credit

Nebraska Advantage Rural Development Act Tax Credits

Nebraska Department of Revenue

$3,000/FTE + $2,750/$50K invest

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Researched for this program: 5 rejection traps · 5 required documentsWhat decides this award ↓

The short version

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 in investment credits = $57,500 total. Livestock operations can earn up to $150,000.
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

How it compares with other state tax credits

We track 86 state tax credits. Here is where the Nebraska Advantage Rural Development Act Tax Credits sits among them. Applying takes about 15 hours by our estimate, close to the 15-hour median.

Hours to apply: About 15 · peers' median 15
Cash match: Not required · 1% of peers require it
SAM.gov: Not required · 0% of peers require it

Source: the GrantCompass catalog of 770 US programs. Browse tax credits in the catalog.

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

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.
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.
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.
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.
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.

Insider tip

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.

Applications are open — don’t lose the window

GrantCompass tracks Nebraska Advantage Rural Development Act Tax Credits’s application windows in the live catalog. Leave an email and we’ll warn you before this window closes — and tell you when the next round opens.

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Last updated October 30, 2026. GrantCompass is an independent funding-discovery tool and is not affiliated with any government agency. Always confirm details on the official program page.