Comparison of Nebraska Tax Incentive Programs
to those Available in Other States

Reporting Neb. Rev. Stat. § 77-5731(7)


Back to 2011 Annual Report Main Page | Back to Nebraska Advantage Act | Tax Incentives Home

States offer many types of tax incentives for businesses. This table summarizes tax incentives in states that somewhat follow the Nebraska model of granting tax incentives. For example, qualification for tax incentives is not dependent upon the location of a project in an enterprise zone or other limited geographic area. Thus, states that offer jobs or investment credits to businesses, but only to those who locate in a limited area, are not counted. States that offer tax incentives, but have different qualification levels depending upon geography, are counted provided that a project could qualify, at some level, in every part of the state.

States may also limit qualification for incentives to targeted industries. Nebraska does this, and the table counts those states where incentives are limited only to targeted activities. Finally, Nebraska refunds the sales and use tax on qualified investments, but some states refund only a portion of the tax. These states are counted as having a refund. Some states have broader sales and use tax exemptions than Nebraska, but do not provide a refund of any taxes paid. Tax exemptions are outside the scope of this report, and states are not counted if they do not provide at least a partial refund of sales and use taxes paid on qualified investment.


Alabama

Job credit: Yes

Investment Credit: Yes

Sales/use tax refund on qualified investment: Yes

Personal property tax abatement: Yes, subject to the same qualifications as the sales tax abatement program. (p. 5)


Alaska

Job credit: None.
Investment Credit: None.
Sales/use tax refund on qualified investment: None.
Personal property tax abatement: None.


Arizona

Job and investment credit: Quality Jobs Tax Credit Program

Sales/use tax refund on qualified investment: None.
Personal property tax abatement: None.


Arkansas

Job credit: Credit on state income tax depends on region of state and payroll thresholds:

Investment Credit: ArkPlus is available in “highly competitive situations” that credits 10% of total investment to state income tax liability by regional tier:

Sales/use tax refund on qualified investment:

Personal property tax abatement: None.


California

Job credit: None.
Investment Credit: None.
Sales/use tax refund on qualified investment: No – only for equipment purchases within specific enterprise zones (p. 8).
Personal property tax abatement: None.


Colorado

Job credit: Aviation manufacturers may earn an income tax credit of $1,200 per employee hired.
Investment Credit: None.
Sales/use tax refund on qualified investment: Refund of sales and use tax available for purchases of qualified biotechnology research and development equipment.
Personal property tax abatement: At the discretion of the city or county government.


Connecticut

Job credit:

Investment Credit:

Sales/use tax refund on qualified investment: None.
Personal property tax abatement: None.


Delaware

Job credit: None.
Investment Credit: None.
Sales/use tax refund on qualified investment: No sales tax.
Personal property tax abatement: None.


Florida

Job credit: Yes, see investment credit.
Investment Credit: Yes.

Sales/use tax refund on qualified investment: Refund on sales tax paid on construction materials in an enterprise zone is available.
Personal property tax abatement: None.


Georgia

Job credit: Yes.

Investment Credit: Yes.

Sales/use tax refund on qualified investment:  None.
Personal property tax abatement: None.


Hawaii

Job credit: None.
Investment Credit: A High-Tech Tax Incentive program is offered which appears to be determined by comfort ruling.
Sales/use tax refund on qualified investment: None.
Personal property tax abatement: Personal property not taxed.


Idaho

Job credit:

Investment Credit: Yes.

Sales/use tax refund on qualified investment: Yes.

Personal property tax abatement:


Illinois

Job credit: Yes.

Investment Credit: See above.
Sales/use tax refund on qualified investment: Yes, can be rewarded as part of the High-Impact Business Tax Credit.
Personal property tax abatement: Yes, can be rewarded as part of the High-Impact Business Tax Credit.


Indiana

Job credit: The Headquarters Relocation Tax Credit allows a credit against state income tax liability for costs incurred in relocating the headquarters.  Annual worldwide revenue must be at least $100 million, and the corporation must have at least 75 employees in Indiana.
Investment Credit: The Hoosier Business Investment Tax Credit provides a credit against income tax based on an analysis of the economic benefits of the proposed investment. 
Sales/use tax refund on qualified investment:  Refund of sales and use tax paid on R&D equipment only.
Personal property tax abatement: None.


Iowa

Job credit: Yes.

Investment Credit:

Sales/use tax refund on qualified investment: Yes.

Personal property tax abatement: Yes, at the local city/county discretion.


Kansas

Job credit: Firms can retain withholding tax by creating at least ten jobs within two years in urban areas and five new jobs elsewhere in the Promoting Employment Across Kansas program.
Investment Credit:  The High Performance Incentive Program allows for a 10 percent corporate income tax credit.  Firms must invest at least $1 million in urban counties and $50,000 elsewhere.
Sales/use tax refund on qualified investment: Remodeling costs, furnishings, machinery and equipment for qualified projects may qualify for an approved sales tax exemption.
Personal property tax abatement: None.


Kentucky

Job credit: See investment credit
Investment Credit:

Sales/use tax refund on qualified investment: Available to participants of the Kentucky Enterprise Initiative Act.
Personal property tax abatement: None.


Louisiana

Job credit: Quality Jobs Program

Investment Credit: None.
Sales/use tax refund on qualified investment: None.  Sales and use tax refunds may apply to investments in enterprise zones.
Personal property tax abatement:  None. Only restoration projects apply.


Maine

Job credit: Yes.

Investment Credit: Yes (see above).
Sales/use tax refund on qualified investment: No (statutory exemptions only)
Personal property tax abatement: None.


Maryland

Job credit: Yes.

Investment Credit: The Biotechnology Tax Credit is allowed to individuals or entities that invest at least $25,000 in a qualified Maryland biotechnology company.
Sales/use tax refund on qualified investment: None.
Personal property tax abatement: None.


Massachusetts

Job credit: Yes

Investment Credit: None.
Sales/use tax refund on qualified investment: None.
Personal property tax abatement: None.


Michigan

Job credit: Yes

Investment Credit

Sales/use tax refund on qualified investment: None.
Personal property tax abatement: Yes. (p. 2, 4)


Minnesota

Job credit:

Investment Credit: See jobs credit.
Sales/use tax refund on qualified investment: None.
Personal property tax abatement: None.


Mississippi

Job credit:

Investment Credit: The Manufacturing Investment Tax Credit requires existing participating manufacturers to invest $1,000,000 in buildings and/or equipment who can receive an investment credit equal to 5% of the eligible investment.
Sales/use tax refund on qualified investment: Yes.

Personal property tax abatement: Exemptions may be granted at the local level by county or municipal governments.


Missouri

Job credit:  The Qualify Missouri Jobs program requires firms to create 20 new jobs within two years if in a rural area or 40 new jobs within two years in other areas.  Technology businesses must create 10 new jobs, and a “high-impact business” must create 100 new jobs within one year.
Investment Credit:  The Missouri BUILD Program allows a tax credit for firms in eligible industries who invest a minimum of $15 million, or $10 million for an office industry, and create 500 jobs or 200 new jobs if an “office industry.”
Sales/use tax refund on qualified investment: Non-manufacturing property purchased through Chapter 100 bonds is tax exempt.
Personal property tax abatement: Non-manufacturing property purchased through Chapter 100 bonds is exempt from personal property tax.


Montana

Job credit: Manufacturers who increase employment by 30% are eligible for a tax credit equal to 1% of the wages paid to new employees.
Investment Credit: None.
Sales/use tax refund on qualified investment: Not applicable (no sales tax).
Personal property tax abatement: Yes, listed here.


Nevada

Job credit: See below.
Investment Credit: See below.
Sales/use tax refund on qualified investment: Yes, details here. Depending on the population of the county, businesses in metro counties must maintain at least 75 jobs and a capital investment of $1 million. 15 jobs and an investment of $250,000 is required in rural counties. The Modified Business Tax Abatement program imposes the same requirements.
Personal property tax abatement: Yes, details here.


New Hampshire

Job credit: None (Coos County Job Creation Tax Credit only).
Investment Credit: None.
Sales/use tax refund on qualified investment: None.
Personal property tax abatement: None.


New Jersey

Job credit:  Incentive grants are available to businesses creating at least 25 new jobs, or ten jobs in the technology or biotechnology sectors.
Investment Credit:  None.
Sales/use tax refund on qualified investment: None.
Personal property tax abatement: None.


New Mexico

Job credit: Yes.

Investment Credit: Yes.

Sales/use tax refund on qualified investment: None.
Personal property tax abatement: Firms can abate personal property taxes through industrial revenue bonds at the discretion of the local government.


New York

Job credit: See investment credit..
Investment Credit: Yes.

Sales/use tax refund on qualified investment: None.
Personal property tax abatement: Personal property exempt from property tax.


North Carolina

Job credit: Yes.

Investment Credit: See above.
Sales/use tax refund on qualified investment: Yes, for a myriad of purchases listed here.
Personal property tax abatement: None.


North Dakota

Job credit: None.
Investment Credit: None.
Sales/use tax refund on qualified investment: Yes, (p. 14)

Personal property tax abatement: No (all personal property is exempt from property tax). (p. 7)


Ohio

Job credit: The Ohio Job Creation Tax Credit is available to businesses that create at least 25 new full-time jobs at a facility in Ohio and pay 150% of the federal minimum wage.  Special circumstances may allow a company to create as few as 10 new full-time jobs for positions paying at least 400% of the federal minimum wage.
Investment Credit: The Ohio Job Retention Tax Credit allows businesses that currently employ at least 1,000 full-time workers and make a capital investment of at least $200 million.  Special circumstances may allow a company to invest at least $100 million if the retained positions will pay 400% of the federal minimum wage.
Sales/use tax refund on qualified investment: Warehouse and manufacturing machinery exempt with special permit from Department of Taxation.
Personal property tax abatement: None (enterprise zones only).


Oklahoma

Job credit: Yes

Investment Credit: Yes.

Sales/use tax refund on qualified investment: Yes.

Personal property tax abatement: None.


Oregon

Job credit: Yes.

Investment Credit: None.
Sales/use tax refund on qualified investment: No sales tax.
Personal property tax abatement: None.  Unfinished improvements to facilities may qualify for local property tax abatements.


Pennsylvania

Job credit: Yes

Investment Credit: None.
Sales/use tax refund on qualified investment: None.
Personal property tax abatement: None.


Rhode Island

Job credit: The Corporate Income Tax Reduction for Job Creation provides an incremental reduction in the corporate income tax rate that creates new employment:

Investment Credit: Depends on the NAICS code of the business (p. 8).
Sales/use tax refund on qualified investment: None.
Personal property tax abatement: None.


South Carolina

Job credit: Yes. (p. 4)

Investment Credit: Job development credit (p. 37) requires at least a $150 million investment and the creation of at least 125 new full-time jobs.
Sales/use tax refund on qualified investment: None.
Personal property tax abatement: None.


South Dakota

Job credit: None.
Investment Credit: See below.
Sales/use tax refund on qualified investment: Business facility expansions may qualify for sales and use tax or contractor excise tax refunds according to the following scale:

Personal property tax abatement: None.


Tennessee

Job credit: Yes

Investment Credit:

Sales/use tax refund on qualified investment: Available to businesses who make a minimum capital investment of $100 million and at least 50 new jobs paying 150% of Tennessee’s average occupational wage.
Personal property tax abatement: None.


Texas

Job credit: None.
Investment Credit: None.
Sales/use tax refund on qualified investment: None.
Personal property tax abatement: None. 


Utah

Job credit:

Investment Credit: None.
Sales/use tax refund on qualified investment: None.
Personal property tax abatement: None.


Vermont

Job credit: Vermont Employment Growth Incentive Program

Investment Credit: None.
Sales/use tax refund on qualified investment: None.
Personal property tax abatement: Property Tax Stabilization Program (p. 12).


Virginia

Job credit: Yes.

Investment Credit:

Sales/use tax refund on qualified investment: None.
Personal property tax abatement: Offered at the local level. (p. 6)


Washington

Job credit: None.
Investment Credit: No – only for favored geographic areas.
Sales/use tax refund on qualified investment: Refund available for materials used in aluminum smelters, cold storage, and construction materials for food manufacturing facilities.
Personal property tax abatement: Also available for aluminum smelters.


West Virginia

Job credit: Yes.

Investment Credit: Yes.

Sales/use tax refund on qualified investment: None.
Personal property tax abatement: None.


Wisconsin

Job credit: Yes

Investment Credit: None.
Sales/use tax refund on qualified investment: None.
Personal property tax abatement: Firms must get state approval for M&E exemption – must be classified as a manufacturing firm.


Wyoming

Job credit: None.
Investment Credit: None.
Sales/use tax refund on qualified investment:

Personal property tax abatement: None.


Back to top of page