Take Advantage of Nebraska’s Microenterprise Tax Credit

Get ready to submit your application for the Nebraska Advantage Microenterprise Tax Credit Act. The Nebraska Department of Revenue will begin accepting applications for the 2011 tax year on November 1, 2010.

Micro business owners and small farmers and ranchers (those with a net worth not exceeding $200,000 or are engaged in the production of value added agriculture, such as aquaculture, agriculture tourism, fruits, herbs, tree products, vegetables, tree nuts, dried fruits, organic crops, or nursery crops) are eligible to apply for the tax credit program. The applicant must be able to show personal involvement on a continuous basis in the daily management and operation of the business.

This program will provide investment tax credits for creating or expanding micro businesses that contribute to the revitalization of economically depressed areas through the creation of new or improved income, self-employment, or other new employment in the area.

Applications should be filed with the Nebraska Department of Revenue. Applications are considered on a first-come, first-served basis. Once approved, applicants are entitled to claim the refundable tax credit equal to 20 percent of the taxpayer’s new investment in the micro business during the tax year. Only $2 million is available each year, and experience tells us it is allocated very quickly.

You’ll find more information about the tax credit here.