From hair salons and restaurants to grocery and hardware stores, more than 80% of the state’s entrepreneurs operate a microbusiness. Their hard work helps keep our community strong and our Main Street alive.
With recent updates to the Nebraska Advantage Microenterprise Tax Credit, more of these small business owners are eligible for one of the state’s only incentives available to businesses of five or fewer employees.
The Nebraska Advantage Microenterprise Tax Credit is a 20% refundable tax credit for up to $20,000. To qualify, an applicant must make an investment which will grow their business. Farmers with a net worth of less than $500,000 are also invited to apply.
Since its inception in 2005, the Microenterprise Tax Credit has been a successful strategy for growing and sustaining the local economy in communities big and small. Under the program, investment credits can be earned on expenditures for securing new buildings, repairing or maintaining Nebraska-based property, and purchasing needed equipment. Hiring Nebraska residents and increasing wages are also eligible expenditures. Recipients have even used the program to invest in professional services, such as advertising.
As small businesses continue to close and others pause plans for future growth, this tax credit can be a boost to not only the eligible business, but the community it serves. We encourage those who are eligible to consider applying before the Nov. 1 deadline. Visit revenue.nebraska.gov/incentives/microenterprise for more information.