The most effective and desirable economic development strategy for many rural communities is small entrepreneurship. This is based on locally-owned and owner-operated small businesses. Approximately 24 percent of Nebraskans are employed by these enterprises and 74 percent report a microbusiness as their sole source of income.
For more than a decade, the Nebraska Advantage Microenterprise Tax Credit has played an essential role in helping these businesses get started. Passed in 2005, the act provides tax credits for creating or expanding microbusinesses that contribute to the local economy. The credit is available to businesses that employ five or fewer employees.
An applicant must commit to hiring a new employee or making an investment that generates income in the local community. The applicant must also be personally involved in the continuous management and operation of the business. Once these conditions are satisfied, the taxpayer is eligible to receive refundable tax credits equal to 20 percent of new investment or employment in the microbusiness during the tax year. Credits expire after the end of the next tax year. The total lifetime credits claimed by any one taxpayer or related person is capped at $10,000.
Nebraska is home to more than 145,000 microbusinesses, accounting for 86 percent of all businesses in the state. Almost 60 percent of these have been operating for 10 years or more. The Nebraska Advantage Microenterprise Tax Credit facilitates this by spurring new investment and supporting business growth.
Applications for 2019 are due Nov. 1. More information can be found at revenue.nebraska.gov.
- Posted on 11.26.2019
- Posted on 7.29.2019
Inaugural Latino Women in Business Conference set for Aug. 27/Conferencia inaugural de mujeres latinas en los negocios programada para el 27 de AgostoPosted on 8.5.2019
- Posted on 8.21.2019
- Posted on 9.14.2019