Economic Incentives

Economic Incentive Programs


Sidney has several financing opportunities that coordinate with the state economic development incentive programs. For additional details regarding the following options, please contact the Economic Development Office at (308) 254-8455.
 

LOCAL


Sidney LB840 Economic Development Fund


Aids qualifying non-retail, non-service businesses in start-ups or expansions and other job creation projects including infrastructure, site development, land purchase and other related expenditures. 

Tax Increment Financing


Tax Increment Financing (TIP): Assists a new or expanding business in eligible redevelopment districts. Currently, there are nine TIF districts in Sidney and three in Potter.

STATE


Nebraska Advantage Program


Provides benefits based on investment tiers from as few as 10 new jobs and $1 million in investment. 
    Tier 1 — $1 million new investment and 10 new jobs 
    Tier 2 — $3 million new investment and 30 new jobs 
    Tier 2 (New/Additional) - $200 million and 30 new jobs at data center 
    Tier 3 — 30 new jobs (no investment) 
    Tier 4 — $12 million new investment and 100 new jobs 
    Tier 5 — $37 million new investment and must maintain employment 
    Tier 6 — $10 million new investment and 75 new jobs OR 
                   $109 million new investment and 50  new jobs

Rural Development Advantage


Provides qualified businesses with refundable tax incentives for projects that create two new jobs and invest $125,000 in counties with less than 15,000 residents (which Sidney and Cheyenne County qualify). Tele-workers count as new employees. In addition, the $250,000-investment and five job thresholds remain in place for counties with populations 15,000-25,000.

Nebraska Customized Job Training Advantage


Provides a flexible and discretionary job-training program with grants from $800 to $4,000 per qualified new job. Additional grant funds may be available for new jobs created in rural and high poverty areas.

Nebraska Advantage Research and Development Credit


Offers a refundable tax credit for qualified research and development activities undertaken by a business entity for 21 years. The credit is equal to 15 percent of the federal credit allowed under Section 41 of the Internal Revenue Code of 1986 for research and development. The credit is increased to 35 percent of the federal credit allowed under Section 41 of the Internal Revenue Code of 1986 for expenditures on the campus of a college or university in Nebraska or a facility owned by a college or university in Nebraska.

Nebraska Advantage Microenterprise Tax Credit


Provides a 20 percent refundable tax credit to micro businesses on increased compensation for employees or increased investment in targeted communities- Applicants may qualify for a maximum $ 10,000 throughout the life of the program. The credit is limited to companies with five or fewer employees at the time the application is filed, including start-ups.

Community Development Block Grant (CDBG)


Loans designed to create quality jobs and promote new investment. CDBG funds must be used to benefit low- to moderate-income persons, aid in the prevention or elimination of slums or blight, or meet other community development emergency needs. CDBG funds can be used to purchase machinery, equipment and inventory, meet working capital needs, develop community infrastructure, construct or renovate existing buildings and real estate.

Capital Gains & Extraordinary Dividend Exclusion


Exemption from state personal income tax on capital gains realized from selling or exchanging stock of one corporation acquired by an employee with that corporation. The employee can also exclude extraordinary dividends that exceed 20 percent of the value of the stock for the same corporation. The corporation must have done business in Nebraska for at least three years and must have a minimum of five shareholders, and related shareholders cannot own more than 90 percent of the stock

State and Local Sales Tax Exemptions of Manufacturing Machinery, Equipment and Related Services


Manufacturing machinery and equipment is defined to include: equipment for transporting raw materials or components, molds and dies for forming cast or injected products or its packaging materials, machinery to maintain the integrity of the product or environmental conditions, testing equipment for quality control, computers that control a manufacturing process, machinery used to produce steam, electricity, catalysts, and solutions, repair or replacement parts, and all installation, repair and maintenance service performed on such equipment.