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Financial Incentive Programs for Small Businesses

Financial Incentives for Small Businesses

Economic Development Incentives

Nebraska Advantage was designed to create a business climate that makes Nebraska the preferred location for starting and growing businesses. There are a variety of incentives for small businesses including:

  • Rural Development Advantage
  • Nebraska Customized Job Training Advantage
  • Nebraska Advantage Microenterprise Tax Credit
  • Community Development Block Grant (CDBG)
  • Capital Gains and Extraordinary Dividend Exclusion

Visit the Nebraska Department of Economic Development website for more information on these programs.

Historic Preservation Incentives

Historic Tax Credit Programs are some of the most impactful tools Nebraskans have in promoting the economic revitalization of their communities. These programs provide tax credits for property owners who rehabilitate a historic building while retaining its historic character. Past projects have provided much-needed low-income housing, fixed-up public buildings like courthouses, and made downtowns more attractive to small business owners. Tax credit programs also stimulate local economies by generating skilled jobs and local tax revenue.

There are three tax credit programs: 

  • Nebraska Historic Tax Credit (NHTC): Provides a state tax credit of up to 20% of qualified rehabilitation expenditures
  • Federal Historic Tax Credit (FHTC): Provides a Federal income tax credit for 20% of qualifying rehabilitation projects
  • Valuation Incentive Program (VIP): Freezes the assessed value of an approved property at the prehab value for 8 years. After 8 years, the assessed value gradually increases over 4 years until the current accessed value is reached

Each program is similar and you may be able to use more than one program for a rehabilitation project. For more information on these programs, visit the History Nebraska website.