Nebraska ‘Urban Redevelopment Act’ kicks in to help grow small businesses in Omaha, Lincoln

South Omaha
Posted at 4:18 PM, Jul 29, 2022
and last updated 2022-07-29 17:18:56-04

NEBRASKA — Nebraskans may soon start seeing the impact of a state law, adopted in 2021, that’s intended to help grow small businesses and investment in urban cores with high poverty and unemployment rates.

The Nebraska Department of Economic Development on Aug. 1 will begin accepting applications from businesses to earn performance-based tax credits under the Urban Redevelopment Act.

Under the law introduced by Sen. Justin Wayne of Omaha, a business can qualify for up to $50,000 in tax credits. Eligible businesses may use the credits to offset income, sales and use or real property taxes or to reduce income tax withholding.

The business must pay to file an application, have a qualified location in atarget area in Lincoln or Omaha and either hire at least five new full-time employees and invest $150,000 in property, or invest $50,000 in the qualified property. The amount of tax credits earned will vary depending on the level of investment and number of new hires.

Up to $8 million in tax credits can be authorized by the state.

Applications must be submitted electronically, state officials said.

This is the first invitation for applications for the tax credits since state lawmakers voted 49-0 last year in favor of Legislative Bill 544.

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