Nebraska ~ Multiple Taxes: Nebraska Advantage Act Wage and Investment Levels for 2017 Announced

CCH Tax Day Report

On or after January 1, 2017, an applicant must meet the following average annual wage (wage) and investment requirements to qualify for benefits under the Nebraska Advantage Act, applicable to the state’s corporate and personal income and sales and use taxes:

    – Tier 1 applicants must meet an investment requirement of $1 million and a wage requirement of $25,709 for at least 10 new employees;

– Tier 2 applicants must meet an investment requirement of $3 million and a wage requirement of $25,709 for at least 30 new employees;

– Tier 2 large data center project applicants must meet an investment requirement of $200 million in qualified property at the data center and an average annual wage requirement of $25,709 for 30 new employees at the data center;

– Tier 3 applicants must meet a wage requirement of $25,709 for at least 30 new employees;

– Tier 4 applicants must meet an investment requirement of $11 million and a wage requirement of $25,709 for at least 100 new employees;

– Tier 5 applicants must meet an investment requirement of $34 million;

– Tier 5 renewable energy project applicants must meet an investment requirement of $20 million; and

– Tier 6 applicants must meet an investment requirement of $10 million and an employment requirement of at least 75 new employees, or an investment requirement of $100 million and an employment requirement of at least 50 new employees. Tier 6 applicants must also meet a wage requirement of at least $64,272.

The 2017 required wage level for the Nebraska Advantage Rural Development Act is $13.27 per hour. The 2017 maximum wage paid for the Nebraska Advantage Microenterprise Tax Credit Act is $1,236 per week.

Revenue Ruling 29-16-1, Nebraska Department of Revenue, November 21, 2016, ¶201-255

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