Premium ContentMouse over Home then click on Premium Content for information.Year Applicants
2006 456
2007 408
2008 620
2009 289
2010 270
2011 278
2012 107*
*To date
Source: Nebraska Department of Revenue
Applications for $10,000 small-business tax credits in Nebraska are running at about the same pace this year as the past three, State Tax Commissioner Douglas Ewald said this week.
The money is distributed on a first-come, first-serve basis. So far, $1.25 million remains out of the $2 million allocated each year for the Microenterprise Tax Credit program. Ewald said 107 businesses have applied for the 2012 credits since applications opened Nov. 1. The Nebraska Department of Revenue, which administers the program, began the 2012 approval process Jan. 1.
The one-time tax credits are part of the Nebraska Advantage business incentive program. Companies that employ five or fewer Nebraska residents are eligible to apply for and claim credits for 20 percent of new investment amounts, new employees or both.
Adrian Lape-Brinkman, a shareholder in the Koski Professional Group accounting firm in Omaha, said the credits can be important for small businesses that are buying new equipment, paying off debt or adding employees. About 10 or 15 of his clients qualify each year.
"It's not huge, but for some small businesses it's very valuable," he said. "You invest in a company and you can get something back. From what we see day to day, more people are starting up businesses."
The program began in 2006 and expires at the end of 2015 unless renewed by the Nebraska Legislature.
Ewald said he expects small businesses will qualify for the entire $2 million this year and then claim the credits on their 2012 tax returns. The credits can be refunded or used to offset state income taxes over two years.
The program requires employers, if they add new workers, to use an electronic federal system to verify that the workers' immigration status makes them eligible for employment.
More information is available at the revenue department website.
Contact the writer:
402-444-1080, steve.jordon@owh.com
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