What are the required wage and investment levels for Nebraska Advantage Act applications filed on or after January 1, 2015?

Plain-English summary

The Nebraska Advantage Act is a tiered incentive program: a business that invests a set amount and creates a set number of jobs at qualifying wages earns tax credits and other benefits. The required investment and wage thresholds are adjusted annually (the investment thresholds are indexed for inflation on October 1 each year and apply to applications filed on or after the following January 1). This ruling publishes the figures for applications filed on or after January 1, 2015.

Investment and employment by tier (2015):

• Tier 1 -- $1 million and at least 10 new employees.
• Tier 2 -- $3 million and 30 new employees.
• Tier 2 large data center -- $203 million in qualified property at the data center and 30 new employees there.
• Tier 3 -- 30 new employees, no investment threshold.
• Tier 4 -- $12 million and 100 new employees.
• Tier 5 -- $37 million ($20 million for a renewable energy project).
• Tier 6 -- $11 million with at least 75 new employees, or $111 million with at least 50 new employees.

Average annual wage requirements (2015): The base wage for Tiers 1-4 is $23,979. The tiered compensation-credit wage levels are 3% = $23,979, 4% = $29,974, 5% = $39,965, 6% = $49,956, and 10% (Tier 6 only, statewide average) = $58,948. Tier 6 wage requirements vary by county -- the ruling attaches a county table (covering Tier 6 applications filed 2011 through 2015), because a county's required compensation is the greater of 200% of the county average weekly wage or 150% of the state average weekly wage (Neb. Rev. Stat. § 77-5719.01).

Two related programs (2015):

• Nebraska Advantage Rural Development Act -- required wage level $12.33 per hour (up from $11.96 in 2014).
• Nebraska Advantage Microenterprise Tax Credit Act -- maximum wage paid $1,154 per week (up from $1,133 in 2014).

This ruling supersedes Revenue Ruling 29-13-4 (issued November 5, 2013).

What this means for you

Businesses planning a Nebraska Advantage Act application

If you file on or after January 1, 2015, these are the thresholds to qualify. Match your project's investment, headcount, and wages to the right tier -- for example, a Tier 4 project needs $12 million invested and 100 new employees at an average wage of at least $23,979. The compensation credit (3% to 6% for Tiers 1-4, 10% for Tier 6) turns on paying above the wage levels listed above, and the wage credit is not available on compensation over $1 million paid to any one employee in a year.

Tier 6 applicants specifically

Your required wage is set county by county (the greater of 200% of the county average weekly wage or 150% of the state average weekly wage). Use the attached county table for the county where your project sits; if it spans counties, the higher county average weekly wage controls.

Rural Development and Microenterprise applicants

Note the 2015 figures: $12.33/hour (Rural Development) and $1,154/week maximum (Microenterprise). These change annually, so confirm the current year's ruling for a later application.

Common questions

Q: What period do these levels apply to?
A: Nebraska Advantage Act applications filed on or after January 1, 2015.

Q: What is the base average annual wage for Tiers 1-4 in 2015?
A: $23,979.

Q: How is the Tier 6 required wage determined?
A: Per county, as the greater of 200% of the county average weekly wage or 150% of the state average weekly wage (Neb. Rev. Stat. § 77-5719.01), listed county-by-county in the attached table.

Q: What are the 2015 Rural Development and Microenterprise figures?
A: Rural Development Act required wage is $12.33 per hour; Microenterprise Tax Credit Act maximum wage paid is $1,154 per week.

Q: Is this still the current threshold?
A: No -- these are the 2015 levels. The Department issues a new ruling each year, and the Nebraska Advantage Act has since been succeeded by the ImagiNE Nebraska Act for new applications. Confirm the current-year figures before applying.

Citations and references

• Neb. Rev. Stat. § 77-5725(1), (9) -- investment thresholds are indexed for inflation each October 1 and apply to applications filed the following January 1.
• Neb. Rev. Stat. § 77-5725(3), (4) -- the 3%-6% and 10% compensation credits and the $1 million per-employee wage-credit cap.
• Neb. Rev. Stat. § 77-5719.01 -- Tier 6 required county compensation equals the greater of 200% of the county average weekly wage or 150% of the state average weekly wage.
• Neb. Rev. Stat. § 77-27,188(1)(b) -- Nebraska Advantage Rural Development Act wage level, based on growth in the rural Nebraska average wage.
• Neb. Rev. Stat. § 77-5903 -- Nebraska Advantage Microenterprise Tax Credit Act wage limit set at 150% of the Nebraska average weekly wage.
• Neb. Rev. Stat. § 77-5712 -- source (Nebraska Department of Labor) of the county wage data.
• Supersedes Revenue Ruling 29-13-4 (issued November 5, 2013).

Source

• Landing page: https://revenue.nebraska.gov/about/legal-information/revenue-rulings-issued-tax-commissioner
• Original PDF: https://revenue.nebraska.gov/sites/revenue.nebraska.gov/files/doc/legal/rulings/rr291401_2015_wage_levels.pdf

Original ruling text

Revenue Ruling 29-14-1

Nebraska Advantage Tax Incentives

Supersedes Revenue Ruling 29-13-4, issued November 5, 2013

October 24, 2014

Wage and Investment Levels for
2015 Nebraska Advantage Act Applications
This guidance document is advisory in nature but is binding on the Nebraska Department of Revenue
(Department) until amended. A guidance document does not include internal procedural documents
that only affect the internal operations of the Department and does not impose additional requirements
or penalties on regulated parties or include confidential information or rules and regulations made in
accordance with the Administrative Procedure Act. If you believe that this guidance document imposes
additional requirements or penalties on regulated parties, you may request a review of the document.
This guidance document may change with updated information or added examples. The Department
recommends you do not print this document. Instead, sign up for the subscription service at revenue.
nebraska.gov to get updates on your topics of interest.

Issue
What are the required wage and investment levels for Nebraska Advantage Act applications filed on or after
January 1, 2015?

Conclusion
Beginning with applications filed on or after January 1, 2015, an applicant must meet the following minimum
wage and investment requirements to qualify for benefits under the Nebraska Advantage Act:
• Tier 1 applicants must meet an investment requirement of $1 million, and an average annual wage
requirement of $23,979 for at least 10 new employees;
• Tier 2 applicants must meet an investment requirement of $3 million, and an average annual wage
requirement of $23,979 for 30 new employees;
• Tier 2 large data center applicants must meet an investment requirement of $203 million in qualified
property at the data center, and an average annual wage requirement of $23,979 for 30 new employees
at the data center;
• Tier 3 applicants must meet an average annual wage requirement of $23,979 for 30 new employees;
• Tier 4 applicants must meet an investment requirement of $12 million, and an average annual wage
requirement of $23,979 for 100 new employees;
• Tier 5 applicants must meet an investment requirement of $37 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 $11 million and an employment requirement
of 75 new employees; or an investment requirement of $111 million and an employment requirement
of 50 new employees. Tier 6 applicants must also meet an average annual wage requirement of at least
$58,948. Note: Wage requirements may vary based upon the county or counties where the project is
located.

Analysis
The Nebraska Advantage Act requires investment thresholds for all projects, except for Tier 5 renewable energy
projects, to be indexed for inflation on October 1 of each year. These new investment thresholds apply to all
applications filed on or after January 1 of the following year. See Neb. Rev. Stat. § 77‑5725(9).
The index is calculated as the result of the 12 most recent Producer Price Indexes (PPI) (published monthly by the
U.S. Department of Labor, Bureau of Labor Statistics), divided by the PPI for the first quarter of 2006 for Tier 1,
Tier 2, Tier 4, and Tier 5 applicants, the first quarter of 2008 for Tier 6 applicants, or the first quarter of 2012

Nebraska Department of Revenue, PO Box 94818, Lincoln, Nebraska 68509-4818

Revenue Ruling 29-14-1

October 24, 2014

Page 2 of 2

for Tier 2 large data center applicants, multiplied by the applicable investment threshold for each respective
tier. See Neb. Rev. Stat. § 77-5725(1). The result is rounded to the next lowest $1 million. Adjustments do not
apply to projects after the year of application.
Under the Nebraska Advantage Act, Tier 1, Tier 2, Tier 2 large data center, Tier 3, and Tier 4 applicants may
be entitled to a credit of 3% to 6% of the average wage paid to new employees, if the wage equals at least 60%
of the Nebraska average annual wage for the year of application. Tier 6 applicants may be entitled to a credit
of 10% of the average wage paid to all employees employed at the project (excluding base-year employees) if
the wage exceeds the greater of 200% of the county average weekly wage, or 150% of the state average weekly
wage for the year of application. Wages are defined as compensation subject to the federal Medicare tax. Also,
the wage credit is not available for compensation in excess of $1 million paid in a year to any employee for a
project in any tier. See Neb. Rev. Stat. § 77-5725(3) and (4).
Wage levels for the Nebraska Advantage Rural Development Act are set by Neb. Rev. Stat. § 77‑27,188(1)
(b), based on the growth in the rural Nebraska average wage. The wage limit for the Nebraska Advantage
Microenterprise Tax Credit Act is established in Neb. Rev. Stat. § 77‑5903 at 150% of the Nebraska average
weekly wage.

Nebraska Advantage Act
Tier

2014 Required Investment

2015 Required Investment

Tier 1
Tier 2
Tier 2 Large Data Center
Tier 4
Tier 5
Tier 5 Renewable Energy
Tier 6
Compensation
Credit
3%
4%
5%
6%
10%

$ 1 million
$ 3 million
$ 201 million
$ 12 million
$ 37 million
$ 20 million
$ 11 million or $110 million
2014 Required
Annual Wage Level
$ 23,561
$ 29,451
$ 39,268
$ 49,085
$ 58,902*

$ 1 million
$ 3 million
$ 203 million
$ 12 million
$ 37 million
$ 20 million
$ 11 million or $111 million
2015 Required
Annual Wage Level
$ 23,979
$ 29,974
$ 39,965
$ 49,956
$ 58,948*

*Tier 6 only, state-wide average. Wage levels for each county are available here.

Nebraska Advantage Rural Development Act
2014 Required Wage Level
$11.96 per hour

2015 Required Wage Level
$12.33 per hour

Nebraska Advantage Microenterprise Tax Credit Act
2014 Maximum Wage Paid
$1,133 per week
APPROVED:

Kim Conroy
Tax Commissioner
October 24, 2014

2015 Maximum Wage Paid
$1,154 per week

Required Annual Wages by County
for Tier 6 Applications Filed in 2011 through 2015
County

Required Annual Wages*
2011

2012

2013

2014

2015

Adams
Antelope
Arthur

$61,396
$54,966
$54,966

$63,960
$55,986
$55,986

$65,248
$57,404
$57,404

$67,350
$58,902
$58,902

$67,672
$59,948
$59,948

Banner
Blaine
Boone

$61,156
$54,966
$54,966

$66,408
$55,986
$56,960

$67,464
$58,186
$59,258

$65,266
$58,902
$61,138

$70,028
$59,948
$63,504

Box Butte
Boyd
Brown

$58,198
$54,966
$54,966

$60,490
$55,986
$55,986

$63,942
$57,404
$57,404

$63,920
$58,902
$58,902

$66,004
$59,948
$59,948

Buffalo
Burt
Butler

$62,984
$54,966
$59,922

$66,826
$55,986
$62,600

$67,334
$57,552
$64,650

$69,690
$59,070
$66,996

$69,572
$60,462
$66,202

Cass
Cedar
Chase

$58,334
$54,966
$56,562

$60,250
$56,522
$59,234

$63,158
$60,758
$62,440

$65,426
$62,438
$63,888

$66,850
$62,340
$65,502

Cherry
Cheyenne
Clay

$54,966
$71,646
$63,560

$55,986
$81,652
$66,244

$57,404
$85,890
$68,362

$58,902
$99,376
$70,964

$59,948
$103,758
$72,590

Colfax
Cuming
Custer

$62,128
$58,220
$57,346

$63,774
$59,364
$58,786

$64,930
$64,306
$60,514

$66,738
$65,598
$63,234

$70,162
$67,680
$66,646

Dakota
Dawes
Dawson

$65,612
$54,966
$58,948

$70,126
$55,986
$61,390

$69,882
$57,404
$63,166

$70,344
$58,902
$64,222

$72,854
$59,948
$65,010

Deuel
Dixon
Dodge

$54,966
$55,788
$60,528

$55,986
$58,482
$64,924

$57,404
$57,404
$63,766

$58,902
$58,902
$64,444

$59,948
$61,064
$66,522

Douglas
Dundy
Fillmore

$85,972
$61,054
$57,658

$86,416
$60,044
$58,114

$88,082
$62,936
$60,520

$90,104
$63,624
$64,596

$91,490
$71,572
$67,066

Franklin
Frontier
Furnas

$54,966
$54,966
$55,996

$55,986
$55,986
$57,240

$57,404
$57,404
$59,412

$58,902
$58,902
$61,712

$59,948
$59,948
$62,406

Gage
Garden
Garfield

$57,494
$54,966
$54,966

$58,488
$55,986
$55,986

$60,510
$57,404
$57,404

$61,668
$58,902
$58,902

$63,326
$59,948
$59,948

Gosper
Grant
Greeley

$54,966
$54,966
$54,966

$58,048
$55,986
$55,986

$57,906
$57,404
$57,404

$61,044
$58,902
$58,902

$60,882
$59,948
$59,948

Hall
Hamilton
Harlan

$63,666
$63,662
$54,966

$66,188
$65,626
$55,986

$67,368
$66,490
$57,404

$68,362
$69,592
$58,902

$69,572
$72,338
$59,948

Hayes
Hitchcock
Holt

$54,966
$60,194
$54,966

$55,986
$68,042
$55,986

$57,404
$67,314
$58,162

$58,902
$66,306
$60.260

$60,308
$68,512
$62,268

Hooker
Howard
Jefferson

$54,966
$54,966
$54,966

$55,986
$55,986
$55,986

$57,404
$57,404
$58,884

$58,902
$58,902
$59,218

$59,948
$59,948
$59,948

Johnson
Kearney
Keith

$62,740
$56,426
$54,966

$63,692
$57,288
$55,986

$61,108
$57,604
$57,404

$63,952
$61,860
$58,902

$63,850
$64,496
$59,948

Keya Paha
Kimball
Knox

$54,966
$55,336
$54,966

$55,986
$57,774
$55,986

$57,404
$60,450
$57,404

$58,902
$73,464
$58,902

$59,948
$76,626
$59,948

Lancaster
Lincoln
Logan

$72,954
$62,012
$54,966

$74,470
$63,226
$55,986

$76,500
$65,560
$57,404

$78,310
$67,492
$58,902

$79,102
$67,772
$59,948

County

Required Annual Wages* (continued)
2011

2012

2013

2014

2015

Loup
Madison
Mcpherson

$54,966
$62,826
$54,966

$55,986
$63,788
$55,986

$57,404
$65,872
$57,404

$58,902
$67,314
$58,902

$59,948
$69,016
$59,948

Merrick
Morrill
Nance

$54,966
$58,760
$54,966

$56,246
$59,854
$55,986

$59,558
$62,818
$59,224

$62,250
$63,492
$60,962

$65,662
$68,020
$62,232

Nemaha
Nuckolls
Otoe

$89,162
$54,966
$59,778

$87,626
$55,986
$61,678

$93,370
$57,404
$63,210

$93,728
$58,902
$64,278

$94,232
$59,948
$65,664

Pawnee
Perkins
Phelps

$57,316
$61,612
$64,914

$56,852
$65,930
$66,902

$57,404
$68,210
$68,636

$58,902
$70,394
$70,546

$59,948
$73,638
$72,180

Pierce
Platte
Polk

$54,966
$65,614
$55,400

$55,986
$67,612
$55,986

$57,868
$69,810
$57,404

$60,504
$70,622
$60,672

$61,630
$72,490
$61,528

Red Willow
Richardson
Rock

$55,178
$54,966
$54,966

$58,504
$55,986
$55,986

$61,312
$57,404
$57,404

$63,054
$58,902
$58,902

$63,564
$59,948
$59,948

Saline
Sarpy
Saunders

$68,336
$71,020
$55,292

$68,406
$73,356
$55,992

$69,746
$75,308
$57,810

$72,164
$78,160
$60,570

$73,076
$79,470
$62,110

Scotts Bluff
Seward
Sheridan

$62,564
$61,966
$54,966

$64,460
$65,534
$55,986

$67,638
$68,722
$57,404

$69,494
$70,746
$58,902

$69,208
$71,112
$59,948

Sherman
Sioux
Stanton

$54,966
$54,966
$87,104

$55,986
$55,986
$89,634

$57,404
$57,404
$93,610

$58,902
$58,902
$97,378

$59,948
$59,948
$97,394

Thayer
Thomas
Thurston

$60,148
$56,278
$69,642

$61,056
$60,160
$71,042

$64,966
$57,868
$74,770

$69,754
$58,902
$76,636

$72,300
$59,948
$76,728

Valley
Washington
Wayne

$54,966
$87,366
$54,966

$55,986
$88,244
$55,986

$57,404
$93,524
$57,404

$58,902
$96,098
$58,902

$59,948
$101,238
$60,272

Webster
Wheeler
York

$54,966
$56,308
$59,818

$55,986
$57,330
$61,702

$57,404
$61,054
$65,402

$58,902
$70,714
$66,476

$59,948
$64,876
$68,822

*The required compensation for a county is equal to the greater of: (a) 200% of the county average
weekly wage; or (b) 150% of the state average weekly wage. If the project is located in more than
one county, the higher county average weekly wage is used to determine the required compensation.
See Neb. Rev. Stat. § 77-5719.01.
Source: Historical Employment and Wages in Nebraska, Nebraska Department of Labor
(Neb. Rev. Stat. § 77‑5712).