NE 29-22-1 Nebraska Advantage Tax Incentives 2022-11-15

What wage levels must Nebraska Advantage Rural Development Act and Microenterprise Tax Credit Act applications filed in 2023 meet?

Short answer: For applications filed on or after January 1, 2023: the Nebraska Advantage Rural Development Act required wage level is $16.82 per hour (up from $16.03 in 2022), and the Nebraska Advantage Microenterprise Tax Credit Act wage limit is $1,554 per week (up from $1,484 in 2022). These are the two program-specific thresholds an applicant must meet to qualify for benefits in the 2023 application year; the Department updates them annually.

Apply this to your situation

This page answers the general question as of 2022. Ezel answers yours, under current Nebraska tax law, with citations.

Disclaimer: This is an official Revenue Ruling of the Nebraska Department of Revenue, a guidance document stating the Department's interpretation of how Nebraska tax law applies. Each Nebraska guidance document carries the notice that it 'is advisory in nature but is binding on the Nebraska Department of Revenue until amended.' Unlike a private letter ruling, a Revenue Ruling is a general statement of Department policy rather than advice to a single taxpayer, but it can be amended, superseded, or made obsolete by a later ruling or a change in statute or regulation, many rulings in this series have been rescinded or superseded, so confirm it is still in effect before relying on it. Nebraska's local option sales and use taxes are administered by the Department, not self-collected by home-rule cities. This summary is informational only and is not legal or tax advice. Consult a licensed Nebraska tax professional about your situation.

About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page as a PDF) is the authoritative source for any reliance.

View original ruling (PDF)

Plain-English summary

Two of Nebraska's economic-development incentive programs -- the Nebraska Advantage Rural Development Act and the Nebraska Advantage Microenterprise Tax Credit Act -- require applicants to meet a wage threshold that is refreshed each year. This ruling publishes the numbers for applications filed on or after January 1, 2023:

Rural Development Act required wage level: $16.82 per hour (up from $16.03 in 2022).
Microenterprise Tax Credit Act wage limit: $1,554 per week (up from $1,484 in 2022).

What this means for you

Businesses applying under these two programs in 2023

If you file a Rural Development Act application in 2023, plan to pay at least $16.82 per hour to meet the wage requirement. For the Microenterprise Tax Credit Act, the relevant weekly wage figure is $1,554. Because these figures change annually, use this ruling only for the 2023 application year and check the current-year ruling for later applications.

Common questions

Q: What year do these wage levels apply to?
A: Applications filed on or after January 1, 2023.

Q: What is the 2023 Rural Development Act required wage?
A: $16.82 per hour.

Q: What is the 2023 Microenterprise Tax Credit Act wage limit?
A: $1,554 per week.

Q: Are these numbers still current?
A: No -- they are the 2023 figures. The Department issues a new wage-level ruling each year, so confirm the current-year amounts before applying.

Citations and references

Programs: Nebraska Advantage Rural Development Act and Nebraska Advantage Microenterprise Tax Credit Act.
No statutes are cited in the text of this ruling; it states the annually-updated wage figures only.

Source

Original ruling text

Revenue Ruling 29-22-1

Nebraska Advantage Tax Incentives

November 15, 2022

Wage Levels for 2023 Nebraska Advantage
Rural Development Act and
Microenterprise Tax Credit 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 the 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. The
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 is the required wage level for Nebraska Advantage Rural Development Act and the wage
limit under the Nebraska Advantage Microenterprise Tax Credit Act applications filed on or after
January 1, 2023?

Conclusion
Beginning with applications filed on or after January 1, 2023, an applicant must meet the following
wage requirements to qualify for benefits:

Nebraska Advantage Rural Development Act
2022 Required Wage Level

2023 Required Wage Level

$ 16.03 per hour

$ 16.82 per hour

Nebraska Advantage Microenterprise Tax Credit Act
2022 Wage Limit

2023 Wage Limit

$ 1,484 per week

$ 1,554 per week

APPROVED:

Tony Fulton
Tax Commissioner
November 15, 2022

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

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