What are the required wage and investment levels for Nebraska Advantage Act applications filed on or after January 1, 2016?

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, and this ruling publishes the figures for applications filed on or after January 1, 2016.

Investment and employment by tier (2016):

• Tier 1 -- $1 million and at least 10 new employees.
• Tier 2 -- $3 million and at least 30 new employees.
• Tier 2 large data center -- $200 million in qualified property at the data center and at least 30 new employees there.
• Tier 3 -- at least 30 new employees, no investment threshold.
• Tier 4 -- $12 million and at least 100 new employees.
• Tier 5 -- $36 million ($20 million for a renewable energy project).
• Tier 6 -- $10 million with at least 75 new employees, or $106 million with at least 50 new employees.

Average annual wage requirements (2016): The base wage for Tiers 1-4 is $24,711. The tiered compensation-credit wage levels are 3% = $24,711, 4% = $30,888, 5% = $41,184, 6% = $51,480, and 10% (Tier 6 only, statewide average) = $61,776. Tier 6 wage requirements vary by county -- the ruling attaches a county table, 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 (2016):

• Nebraska Advantage Rural Development Act -- required wage level $12.86 per hour (up from $12.33 in 2015).
• Nebraska Advantage Microenterprise Tax Credit Act -- maximum wage paid $1,188 per week (up from $1,154 in 2015).

What this means for you

Businesses planning a Nebraska Advantage Act application

If you file on or after January 1, 2016, 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 $24,711.

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 2016 figures: $12.86/hour (Rural Development) and $1,188/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, 2016.

Q: What is the base average annual wage for Tiers 1-4 in 2016?
A: $24,711.

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 2016 Rural Development and Microenterprise figures?
A: Rural Development Act required wage is $12.86 per hour; Microenterprise Tax Credit Act maximum wage paid is $1,188 per week.

Q: Is this still the current threshold?
A: No -- these are the 2016 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. § 77-5719.01 -- Tier 6 required county compensation equals the greater of 200% of the county average weekly wage or 150% of the state average weekly wage.
• Source of county wage data: Historical Employment and Wages in Nebraska, Nebraska Department of Labor.

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/rr291501_2016_wage_levels.pdf

Original ruling text

Revenue Ruling 29-15-1

Nebraska Advantage Tax Incentives

December 17, 2015

Wage and Investment Levels for
2016 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, 2016?

Conclusion
Beginning with applications filed on or after January 1, 2016, 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 $24,711 for at least 10 new employees;
• Tier 2 applicants must meet an investment requirement of $3 million, and an average annual wage
requirement of $24,711 for 30 new employees;
• Tier 2 large data center applicants must meet an investment requirement of $200 million in
qualified property at the data center, and an average annual wage requirement of $24,711 for 30
new employees at the data center;
• Tier 3 applicants must meet an average annual wage requirement of $24,711 for 30 new employees;
• Tier 4 applicants must meet an investment requirement of $12 million, and an average annual wage
requirement of $24,711 for 100 new employees;
• Tier 5 applicants must meet an investment requirement of $36 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 75 new employees; or an investment requirement of $106 million and an
employment requirement of 50 new employees. Tier 6 applicants must also meet an average annual
wage requirement of at least $61,776. Note: Wage requirements may vary based upon the county
or counties where the project is located. See the attached table for the required annual wages for
each county.

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

Revenue Ruling 29-15-1

December 17, 2015

Page 2 of 2

Nebraska Advantage Act
Tier

2015 Required Investment

2016 Required Investment

Tier 1
Tier 2
Tier 2 Large Data Center
Tier 4
Tier 5
Tier 5 Renewable Energy
Tier 6

$ 1 million
$ 3 million
$ 203 million
$ 12 million
$ 37 million
$ 20 million
$ 11 million or $111 million

$ 1 million
$ 3 million
$ 200 million
$ 12 million
$ 36 million
$ 20 million
$ 10 million or $106 million

Compensation
Credit

2015 Required
Annual Wage Level

2016 Required
Annual Wage Level

3%
4%
5%
6%
10%

$ 23,979
$ 29,974
$ 39,965
$ 49,956
$ 58,948*

$ 24,711
$ 30,888
$ 41,184
$ 51,480
$ 61,776*

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

Nebraska Advantage Rural Development Act
2015 Required Wage Level

2016 Required Wage Level

$12.33 per hour

$12.86 per hour

Nebraska Advantage Microenterprise Tax Credit Act
2015 Maximum Wage Paid

2016 Maximum Wage Paid

$1,154 per week

$1,188 per week

APPROVED:

Len Sloup
Acting Tax Commissioner
December 17, 2015

Required Annual Wages by County
for Tier 6 Applications Filed in 2012 through 2016
County

Required Annual Wages*
2012

2013

2014

2015

2016

Adams
Antelope
Arthur

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

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

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

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

$69,964
$62,792
$61,776

Banner
Blaine
Boone

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

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

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

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

$71,884
$69,684
$65,330

Box Butte
Boyd
Brown

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

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

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

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

$67,648
$61,776
$61,776

Buffalo
Burt
Butler

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

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

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

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

$71,250
$64,632
$73,758

Cass
Cedar
Chase

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

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

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

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

$66,270
$64,186
$67,676

Cherry
Cheyenne
Clay

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

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

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

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

$61,776
$105,188
$73,016

Colfax
Cuming
Custer

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

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

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

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

$69,722
$69,302
$69,506

Dakota
Dawes
Dawson

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

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

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

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

$77,464
$61,776
$66,706

Deuel
Dixon
Dodge

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

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

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

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

$61,776
$69,004
$68,790

Douglas
Dundy
Fillmore

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

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

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

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

$93,580
$65,952
$69,874

Franklin
Frontier
Furnas

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

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

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

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

$61,776
$62,820
$65,388

Gage
Garden
Garfield

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

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

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

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

$66,004
$61,776
$61,776

Gosper
Grant
Greeley

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

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

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

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

$64,238
$61,776
$61,776

Hall
Hamilton
Harlan

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

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

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

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

$72,424
$73,934
$61,776

Hayes
Hitchcock
Holt

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

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

$58,902
$66,306
$60.260

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

$61,776
$72,716
$66,296

Hooker
Howard
Jefferson

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

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

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

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

$61,776
$61,776
$62,890

Johnson
Kearney
Keith

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

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

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

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

$66,132
$67,600
$61,776

Keya Paha
Kimball
Knox

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

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

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

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

$61,776
$81,136
$61,776

Lancaster
Lincoln
Logan

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

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

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

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

$81,218
$70,494
$61,776

County

Required Annual Wages* (continued)
2012

2013

2014

2015

2016

Loup
Madison
Mcpherson

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

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

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

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

$61,776
$71,732
$61,776

Merrick
Morrill
Nance

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

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

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

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

$67,802
$67,196
$64,126

Nemaha
Nuckolls
Otoe

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

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

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

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

$94,484
$61,776
$68,316

Pawnee
Perkins
Phelps

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

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

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

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

$61,776
$74,530
$75,664

Pierce
Platte
Polk

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

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

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

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

$65,292
$75,730
$63,276

Red Willow
Richardson
Rock

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

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

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

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

$65,568
$61,776
$61,776

Saline
Sarpy
Saunders

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

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

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

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

$74,458
$81,632
$64,544

Scotts Bluff
Seward
Sheridan

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

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

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

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

$71,882
$74,004
$61,776

Sherman
Sioux
Stanton

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

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

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

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

$61,776
$61,776
$111,000

Thayer
Thomas
Thurston

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

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

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

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

$71,382
$62,668
$79,784

Valley
Washington
Wayne

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

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

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

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

$61,880
$97,684
$63,636

Webster
Wheeler
York

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

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

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

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

$61,776
$68,460
$70,738

*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).