What are the required wage and investment levels for Nebraska Advantage Act applications filed on or after January 1, 2018?

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, 2018.

Investment and employment by tier (2018):

• 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 -- $11 million and at least 100 new employees.
• Tier 5 -- $35 million ($20 million for a renewable energy project).
• Tier 6 -- $10 million with at least 75 new employees, or $103 million with at least 50 new employees.

Average annual wage requirements (2018): The base wage for Tiers 1-4 is $26,146. The tiered compensation-credit wage levels are 3% = $26,146, 4% = $32,682, 5% = $43,576, 6% = $54,470, and 10% (Tier 6 only, statewide average) = $65,364. 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 (2018):

• Nebraska Advantage Rural Development Act -- required wage level $13.51 per hour (up from $13.27 in 2017).
• Nebraska Advantage Microenterprise Tax Credit Act -- maximum wage paid $1,257 per week (up from $1,236 in 2017).

What this means for you

Businesses planning a Nebraska Advantage Act application

If you file on or after January 1, 2018, 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 $11 million invested and 100 new employees at an average wage of at least $26,146.

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 2018 figures: $13.51/hour (Rural Development) and $1,257/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, 2018.

Q: What is the base average annual wage for Tiers 1-4 in 2018?
A: $26,146.

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 2018 Rural Development and Microenterprise figures?
A: Rural Development Act required wage is $13.51 per hour; Microenterprise Tax Credit Act maximum wage paid is $1,257 per week.

Q: Is this still the current threshold?
A: No -- these are the 2018 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/rr291703_2018_wage_levels.pdf

Original ruling text

Revenue Ruling 29-17-3

Nebraska Advantage Tax Incentives
December 22, 2017

Wage and Investment Levels for
2018 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, 2018?

Conclusion
Beginning with applications filed on or after January 1, 2018, 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 $26,146 for at least 10 new employees;
• Tier 2 applicants must meet an investment requirement of $3 million, and an
average annual wage requirement of $26,146 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 $26,146 for 30 new employees at the data center;
• Tier 3 applicants must meet an average annual wage requirement of $26,146 for
30 new employees;
• Tier 4 applicants must meet an investment requirement of $11 million, and an
average annual wage requirement of $26,146 for 100 new employees;
• Tier 5 applicants must meet an investment requirement of $35 million;

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

Revenue Ruling 29-17-3

•
•

December 22, 2017

Page 2 of 2

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 $103 million and an employment requirement of 50 new employees. Tier 6
applicants must also meet an average annual wage requirement of at least $65,364.
Note: Wage requirements may vary based upon the counties where the project is
located. See the attached table for the required annual wages for each county.

Nebraska Advantage Act
Tier

2017 Required Investment

2018 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
$ 200 million
$ 11 million
$ 34 million
$ 20 million
$ 10 million or $100 million

$ 1 million
$ 3 million
$ 200 million
$ 11 million
$ 35 million
$ 20 million
$ 10 million or $103 million

Compensation
Credit

2017 Required
Annual Wage Level

2018 Required
Annual Wage Level

3%
4%
5%
6%
10%

$ 25,709
$ 32,136
$ 42,848
$ 53,560
$ 64,272*

$ 26,146
$ 32,682
$ 43,576
$ 54,470
$ 65,364*

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

Nebraska Advantage Rural Development Act
2017 Required Wage Level

2018 Required Wage Level

$13.27 per hour

$13.51 per hour

Nebraska Advantage Microenterprise Tax Credit Act
2017 Maximum Wage Paid

2018 Maximum Wage Paid

$1,236 per week

$1,257 per week

APPROVED:

Tony Fulton
Tax Commissioner
December 22, 2017

Required Annual Wages by County
for Tier 6 Applications Filed in 2013 through 2018
County

Required Annual Wages*
2013

2014

2015

2016

2017

2018

Adams
Antelope
Arthur

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

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

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

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

$71,722
$64,966
$64,272

$73,232
$66,194
$65,364

Banner
Blaine
Boone

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

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

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

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

$74,210
$64,272
$66,680

$69,138
$65,884
$68,994

Box Butte
Boyd
Brown

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

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

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

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

$69,012
$64,272
$64,362

$68,870
$65,364
$66,178

Buffalo
Burt
Butler

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

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

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

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

$75,036
$66,886
$76,332

$75,464
$67,460
$76,156

Cass
Cedar
Chase

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

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

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

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

$70,000
$66,100
$68,022

$71,984
$67,422
$69,308

Cherry
Cheyenne
Clay

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

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

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

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

$64,272
$100,482
$74,882

$65,364
$101,286
$80,594

Colfax
Cuming
Custer

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

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

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

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

$73,156
$72,836
$71,806

$83,116
$74,640
$71,322

Dakota
Dawes
Dawson

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

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

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

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

$77,698
$64,272
$69,056

$82,726
$65,364
$71,554

Deuel
Dixon
Dodge

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

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

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

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

$64,272
$64,918
$71,144

$65,364
$68,030
$72,976

Douglas
Dundy
Fillmore

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

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

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

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

$98,184
$72,512
$72,872

$99,444
$71,278
$75,264

Franklin
Frontier
Furnas

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

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

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

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

$64,272
$65,816
$66,310

$65,364
$65,698
$68,488

Gage
Garden
Garfield

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

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

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

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

$67,982
$64,272
$64,272

$69,426
$65,364
$65,364

Gosper
Grant
Greeley

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

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

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

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

$66,016
$64,272
$64,272

$67,378
$65,364
$65,364

Hall
Hamilton
Harlan

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

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

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

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

$74,662
$78,276
$64,272

$75,720
$84,914
$65,364

Hayes
Hitchcock
Holt

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

$58,902
$66,306
$60.260

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

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

$64,272
$76,464
$66,456

$65,364
$76,376
$68,136

Hooker
Howard
Jefferson

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

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

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

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

$64,272
$64,272
$66,570

$65,364
$65,364
$67,398

Johnson
Kearney
Keith

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

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

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

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

$70,790
$69,234
$64,272

$73,126
$70,480
$65,912

Keya Paha
Kimball
Knox

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

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

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

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

$64,272
$80,864
$64,272

$65,364
$71,326
$65,364

Lancaster
Lincoln
Logan

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

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

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

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

$83,826
$73,486
$64,272

$85,426
$75,082
$65,364

County

Required Annual Wages* (continued)
2013

2014

2015

2016

2017

2018

Loup
Madison
Mcpherson

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

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

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

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

$64,272
$74,566
$64,272

$65,364
$75,966
$65,364

Merrick
Morrill
Nance

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

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

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

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

$71,558
$71,724
$64,448

$72,760
$71,838
$65,968

Nemaha
Nuckolls
Otoe

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

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

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

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

$94,334
$64,272
$71,276

$100,240
$65,364
$72,208

Pawnee
Perkins
Phelps

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

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

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

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

$64,272
$78,466
$78,092

$65,364
$79,568
$79,482

Pierce
Platte
Polk

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

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

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

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

$67,864
$79,218
$66,346

$68,172
$80,946
$67,616

Red Willow
Richardson
Rock

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

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

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

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

$67,474
$64,272
$66,188

$68,482
$65,364
$66,474

Saline
Sarpy
Saunders

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

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

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

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

$78,256
$84,852
$67,370

$80,036
$87,138
$69,058

Scotts Bluff
Seward
Sheridan

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

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

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

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

$73,186
$74,962
$64,272

$75,338
$76,782
$65,364

Sherman
Sioux
Stanton

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

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

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

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

$64,272
$64,272
$105,676

$65,364
$65,364
$111,366

Thayer
Thomas
Thurston

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

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

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

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

$70,612
$64,272
$86,742

$70,574
$65,364
$81,904

Valley
Washington
Wayne

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

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

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

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

$64,436
$104,856
$67,880

$66,002
$101,756
$69,588

Webster
Wheeler
York

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

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

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

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

$64,272
$66,762
$72,544

$65,364
$67,532
$73,074

*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.
See Neb. Rev. Stat. § 77‑5712.