What are the required wage and investment levels for Nebraska Advantage Act applications filed on or after January 1, 2020?

Plain-English summary

The Nebraska Advantage Act is a tiered economic-development incentive program: a business that invests a set amount and creates a set number of jobs at qualifying wage levels earns tax credits and other benefits. The required investment and wage thresholds are adjusted each year, and this ruling publishes the numbers that apply to applications filed on or after January 1, 2020.

Investment and employment by tier (2020):

• Tier 1 -- $1 million invested 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 -- $37 million ($20 million for a renewable energy project).
• Tier 6 -- $10 million with at least 75 new employees, or $109 million with at least 50 new employees.

Average annual wage requirements (2020): All of Tiers 1-4 use a base wage of $27,768. The tiered compensation-credit wage levels rose from 2019 to 2020 as follows: 3% credit = $27,768, 4% = $34,710, 5% = $46,280, 6% = $57,850, and 10% (Tier 6 only, statewide average) = $69,420. Tier 6 wage requirements vary by county -- the ruling attaches a full county table of required annual wages for Tier 6 applications filed 2014-2020, 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 (2020):

• Nebraska Advantage Rural Development Act -- required wage level $14.49 per hour (up from $14.00 in 2019).
• Nebraska Advantage Microenterprise Tax Credit Act -- maximum wage paid $1,335 per week (up from $1,293 in 2019).

What this means for you

Businesses planning a Nebraska Advantage Act application

If you file on or after January 1, 2020, these are the thresholds you must meet to qualify for benefits. Match your project's planned investment, headcount, and wages to the correct tier before applying -- for example, a Tier 4 project needs $12 million invested and 100 new employees at an average wage of at least $27,768.

Tier 6 applicants specifically

Your required wage is not a single statewide number -- it 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 the project spans multiple counties, the higher county average weekly wage controls.

Rural Development and Microenterprise Tax Credit applicants

Note the 2020 figures: $14.49/hour (Rural Development) and $1,335/week maximum (Microenterprise). These change annually, so confirm the current year's ruling for any later application.

Common questions

Q: What period do these levels apply to?
A: Nebraska Advantage Act applications filed on or after January 1, 2020.

Q: What is the base average annual wage for Tiers 1-4 in 2020?
A: $27,768.

Q: How is the Tier 6 required wage determined?
A: It is set 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), and is listed county-by-county in the attached table.

Q: What are the 2020 Rural Development and Microenterprise figures?
A: Rural Development Act required wage is $14.49 per hour; Microenterprise Tax Credit Act maximum wage paid is $1,335 per week.

Q: Is this still the current threshold?
A: No -- these are the 2020 levels. The Department issues a new ruling each year, and the underlying 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.
• Neb. Rev. Stat. § 77-5712 -- Nebraska Advantage Act tier investment, employment, and wage thresholds.
• 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/rr291901_wage_levels.pdf

Original ruling text

Revenue Ruling 29-19-1

Nebraska Advantage Tax Incentives
December 3, 2019

Wage and Investment Levels for
2020 Nebraska Advantage Act Applications
This guidance document is advisory in nature but is binding on the Nebraska
Department of Revenue (DOR) until amended. A guidance document does not
include internal procedural documents that only affect the internal operations of
DOR 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. DOR 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, 2020?

Conclusion
Beginning with applications filed on or after January 1, 2020, 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 $27,768 for at least 10 new employees;
• Tier 2 applicants must meet an investment requirement of $3 million, and an
average annual wage requirement of $27,768 for at least 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 $27,768 for at least 30 new employees at the data center;
• Tier 3 applicants must meet an average annual wage requirement of $27,768 for
at least 30 new employees;
• Tier 4 applicants must meet an investment requirement of $12 million, and an
average annual wage requirement of $27,768 for at least 100 new employees;
• Tier 5 applicants must meet an investment requirement of $37 million;

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

Revenue Ruling 29-19-1

•
•

December 3, 2019

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 at least 75 new employees; or an investment
requirement of $109 million and an employment requirement of at least 50 new
employees. Tier 6 applicants must also meet an average annual wage requirement
of at least $69,420. 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

2019 Required Investment

2020 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
$ 12 million
$ 36 million
$ 20 million
$ 10 million or $108 million

$ 1 million
$ 3 million
$ 200 million
$ 12 million
$ 37 million
$ 20 million
$ 10 million or $109 million

Compensation
Credit

2019 Required
Annual Wage Level

2020 Required
Annual Wage Level

3%
4%
5%
6%
10%

$ 26,895
$ 33,618
$ 44,824
$ 56,030
$ 67,236*

$ 27,768
$ 34,710
$ 46,280
$ 57,850
$ 69,420*

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

Nebraska Advantage Rural Development Act
2019 Required Wage Level

2020 Required Wage Level

$14.00 per hour

$14.49 per hour

Nebraska Advantage Microenterprise Tax Credit Act
2019 Maximum Wage Paid

2020 Maximum Wage Paid

$1,293 per week

$1,335 per week

APPROVED:

Tony Fulton
Tax Commissioner
December 3, 2019

Required Annual Wages by County
for Tier 6 Applications Filed in 2014 through 2020
County

Required Annual Wages*
2014

2015

2016

2017

2018

2019

2020

Adams
Antelope
Arthur

$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

$76,032
$70,264
$67,236

$78,854
$73,434
$69,420

Banner
Blaine
Boone

$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

$72,330
$70,542
$71,806

$73,812
$69,914
$74,992

Box Butte
Boyd
Brown

$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

$72,306
$67,236
$67,236

$73,406
$69,420
$69,420

Buffalo
Burt
Butler

$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

$78,126
$69,968
$76,006

$79,750
$72,592
$79,772

Cass
Cedar
Chase

$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

$74,316
$69,664
$71,148

$75,502
$71,356
$73,496

Cherry
Cheyenne
Clay

$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

$67,236
$124,894
$81,712

$69,420
$96,612
$84,214

Colfax
Cuming
Custer

$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

$82,152
$76,004
$73,392

$86,782
$79,882
$74,968

Dakota
Dawes
Dawson

$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

$87,438
$67,236
$75,214

$92,614
$69,420
$78,940

Deuel
Dixon
Dodge

$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

$67,236
$69,146
$75,118

$69,420
$72,820
$79,636

Douglas
Dundy
Fillmore

$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

$101,666
$73,352
$77,952

$104,484
$77,102
$79,538

Franklin
Frontier
Furnas

$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

$67,236
$68,178
$69,174

$69,420
$69,758
$70,978

Gage
Garden
Garfield

$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

$71,296
$67,460
$67,236

$73,598
$69,420
$69,420

Gosper
Grant
Greeley

$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

$69,656
$67,236
$67,236

$71,626
$69,420
$69,420

Hall
Hamilton
Harlan

$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

$78,096
$86,118
$67,236

$80,096
$86,588
$69,420

Hayes
Hitchcock
Holt

$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

$67,236
$69,254
$70,890

$69,420
$72,572
$72,716

Hooker
Howard
Jefferson

$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

$67,236
$67,236
$69,712

$69,420
$69,420
$70,496

Johnson
Kearney
Keith

$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

$76,070
$73,022
$67,236

$79,192
$76,366
$69,420

Keya Paha
Kimball
Knox

$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

$67,236
$72,660
$67,236

$69,420
$74,584
$69,420

Lancaster
Lincoln
Logan

$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

$88,090
$76,888
$67,236

$90,650
$79,420
$69,420

County

Required Annual Wages* (continued)
2014

2015

2016

2017

2018

2019

2020

Loup
Madison
Mcpherson

$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

$67,236
$78,784
$67,236

$69,420
$82,046
$69,420

Merrick
Morrill
Nance

$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

$74,886
$71,306
$68,804

$78,924
$73,892
$69,420

Nemaha
Nuckolls
Otoe

$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

$101,046
$67,236
$74,784

$103,632
$69,420
$77,424

Pawnee
Perkins
Phelps

$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

$68,618
$80,892
$81,900

$70,416
$83,332
$84,420

Pierce
Platte
Polk

$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

$68,550
$83,364
$69,944

$71,836
$86,148
$71,714

Red Willow
Richardson
Rock

$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

$71,642
$67,236
$69,458

$73,904
$69,420
$69,526

Saline
Sarpy
Saunders

$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

$81,994
$89,854
$71,472

$84,936
$93,910
$73,248

Scotts Bluff
Seward
Sheridan

$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

$75,994
$79,470
$67,236

$78,136
$83,434
$69,420

Sherman
Sioux
Stanton

$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

$67,236
$67,236
$119,894

$69,420
$69,420
$132,816

Thayer
Thomas
Thurston

$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

$72,522
$67,236
$82,652

$74,756
$69,420
$84,146

Valley
Washington
Wayne

$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

$67,536
$101,564
$71,354

$71,352
$107,154
$72,610

Webster
Wheeler
York

$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

$67,236
$67,236
$74,454

$69,420
$69,420
$78,128

*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.