Nebraska
State Resources
Nebraska, part of the vast Great Plains, offers wide-open skies, rolling prairies and the largest grass-stabilized dune systems in the world. As the Cornhusker State, Nebraska is a leading producer of corn, soybeans, and beef. Agriculture is central to its economy and identity. Nebraska invests in science and technology education, especially in rural areas, supported by research in agriculture, engineering, and medicine through the University of Nebraska System. The mission of Nebraska Department of Economic Development (DED) “is to provide quality leadership and services that enable Nebraska’s communities, businesses, and people to succeed in a global economy.” DED manages more than 50 grant programs and initiatives dedicated to growing Nebraska and supporting citizens and businesses throughout the state. DED administers various programs targeted to businesses as outlined below.
Nebraska Academic Research and Development Grants
The Academic Research & Development Grant program provides Nebraska businesses with a matching competitive grant for research and development activities conducted in collaboration with a Nebraska college or university. The grant’s objectives are to (1) Commercialize new projects, (2) Enhance the marketability of existing products through modifications, and (3) Improve existing processes that could generate new revenue streams for Nebraska businesses. Grants are in two phases, namely
Phase I R&D awards are capped at $100,000.
Phase II R&D awards are capped at $400,000.
This program has a matching requirement. The program mandates a 100% (1:1) match for R&D grant funding, while funding for value-added agriculture projects requires a 25% (4:1) match. Applications are be accepted on a rolling basis until funds are depleted.
Nebraska Innovation Fund Prototype Grant
Nebraska Innovation Fund (NIF) Prototype Grant is a matching program that offers financial support to businesses engaged in new product development within the state of Nebraska. Eligible expenses include wages, prototype materials, and limited preapproved tooling or equipment costs. Prototype grants are awarded with a maximum funding of $150,000 per project. To be eligible, applicants must be businesses operating within Nebraska and must provide a minimum of 50% matching funds. Projects that qualify as value-added agriculture are subject to a 25% reduced match. The DED reimburses project costs at a rate of 66%, or 80% for value-added agriculture projects. Applications for NIF Prototype grant are accepted on a rolling basis until funds are exhausted.
Nebraska Small Business Innovation Research / Small Business Tech Transfer (SBIR/STTR) Grant Program
The Nebraska Small Business Innovation Research / Small Business Technology Transfer program is a matching grant that provides financial assistance to Nebraska businesses that have received a Federal SBIR or STTR grant. The program provides funding during two phases of the Federal SBIR/STTR process as well as a Phase 0:
Phase 0 grants reimburse up to $5,000 per project for costs incurred in preparing a Phase 1 proposal.
Phase 1 grants will match federal SBIR/STTR awards up to $150,000 or 65% of the grant, whichever is less.
Phase 2 grants will match federal SBIR/STTR awards up to $300,000 or 65% of the grant, whichever is less.
Applications are accepted annually from July 1st through June 30th or until funds are exhausted.
Nebraska Seed and Development Fund (NSDF)
Nebraska Seed and Development Fund (NSDF) is an equity capital direct investment program that makes investments in qualified Nebraska small businesses. The fund is administered by Invest Nebraska. NSDF is conducted via a partnership between an approved venture capital fund and the Nebraska DED. Eligible businesses are business corporations, partnerships, and sole proprietorships with no more than 750 employees, with headquarters and a physical location in Nebraska. The NSDF maximum participation amount is $5,000,000. A 1:1 private investment match is required.
Renewable Chemical Production Tax Credit Act
The Renewable Chemical Production Tax Credit Act aims to foster the growth of the emerging biotechnology and bioproducts sector in Nebraska, thereby incentivizing the development of renewable chemicals. These renewable chemicals encompass biobased chemicals that can serve as food, feed, or fuel additives, supplements, vitamins, nutraceuticals, and pharmaceuticals. In the years 2022 and 2023, a tax credit of $3,000,000 was provided to eligible businesses. Subsequently, the tax credit amount will be increased to $6,000,000 for each subsequent year. The maximum tax credit that an eligible business can earn annually is $1,500,000. For instance, Virdis Chemical, LLC received $1,370,273.77 in credits in 2024 for the production of a renewable chemical in Nebraska.
Tax credits under the Renewable Chemical Production Tax Credit Act are intended to stimulate the emerging biotechnology and bioproducts sector in Nebraska and incentivize the development of renewable chemicals. Renewable chemical includes biobased chemicals that can be a food, feed, or fuel additive and supplements, vitamins, nutraceuticals, and pharmaceuticals. Tax credits in the amount of $3,000,000 will be awarded for calendar years 2022 and 2023 and tax credits in the amount of $6,000,000 will be awarded for each subsequent year. The maximum amount of tax credits that each eligible business can earn is $1,500,000 per year. For example, Virdis Chemical, LLC received $1,370,273.77 in tax credits in 2024 for production of a renewable chemical in Nebraska.
Eligibility:
To be eligible to receive tax credits for the production of renewable chemicals, a business must first apply to DED “ to be certified as an eligible business. To be certified as an eligible business, the applicant must (i) produce at least one million pounds of renewable chemicals in Nebraska during the calendar year for which tax credits are sought, (ii) be physically located in Nebraska, (iii) have organized, expanded, or located in Nebraska on or after January 1, 2021.”
ImagiNE Nebraska
ImagiNE Nebraska program offers sales and use tax, personal property tax, and income tax incentives to any qualifying businesses that add full-time equivalent employees and new investment in Nebraska. Businesses must meet specific thresholds to qualify for these incentives. The minimum requirement to receive tax breaks is to invest $250,000 to $1 million and hire at least five new employees. Once these requirements are met, the taxpayer is eligible for credits that can be applied to reduce the taxpayer’s income tax or to obtain a sales and use the tax credit.
To be eligible, companies must have qualifying locations within the state of Nebraska and meet the specified business classifications. These classifications include, but are not limited to, manufacturing, testing laboratories, and data processing.
To apply, submit an ImagiNE Nebraska Act application to Nebraska DED along with $5,000 application fee.
