Frequently Asked Questions
What happens if an applicant for the Economic Redevelopment Areas level exceeds $1 Million of qualified investments?
While a business can invest over one million dollars, they cannot earn credits for any investment over one million dollars.
How long do the benefits last?
As soon as employment and investment levels are met in the Ramp-up Period, the Performance Period (earning of credits) begins. The Performance Period is the year during which the required increases in employment and investment were met or exceeded and each year thereafter until the end of the sixth year after the year the required increases were met or exceeded. Credits are allowable in each year of the performance period that you are at or above the required levels.
For example: if you apply for imagiNE and meet the minimum requirements in 2021, your performance period will begin in 2021 and end on December 31st, 2027. After the performance period, you have 3-years to use any unused credits.
Does the entire investment requirement need to be made in the first year?
The entire investment requirement does not need to be met in the first year. The investment may be made over the course of the Ramp-up Period.
What is year of qualification?
The year of qualification is the year in which the minimum requirements for your application level are met.
When should we hire our new employees? How long do the employees have to be employed?
Your “Ramp-Up Period” starts immediately after your application date and lasts until the end of the fourth year after your application date. Any FTE added after your application date counts toward your employment requirements. You have your entire Ramp-Up Period to reach your employment levels. Once your employment and investment levels are met, you enter your performance period. FTE’s must be maintained for all years of your performance period.
What is an equivalent employee (FTE)?
An equivalent employee is defined as the number of employees computed by dividing the total hours paid in a year by the product of forty times the number of weeks in a year. Only the hours paid to employees who are residents of this state shall be included in such computation. A salaried employee who receives a predetermined amount of compensation each pay period on a weekly or less frequent basis is deemed to have been paid for forty hours per week during the pay period.
Example: Total Hours Paid to NE residents = 10,400 FTE=10,400/2080
What is a base year employee?
A base year employee is defined as any individual who was employed in Nebraska and subject to the Nebraska income tax on compensation received from the taxpayer or its predecessors during the base year and who is employed at the qualified location or locations. Base year employees do not need to be Nebraska residents to be counted as base-year employees.
Can employees working remotely qualify as new FTEs?
Yes, as long as they are working in Nebraska from their residence on tasks interdependent with the work performed at the project and meet all imagiNE FTE requirements.
Content Under Development
When will applications for ImagiNE Nebraska be accepted?
Applications are accepted now. However, the earliest application date is 1/1/2021. To apply, go to https://imagine.nebraska.gov/apply/.
What documents do I need for the application?
Only the online application is required to receive your application date. More information will be requested after the application is submitted. To see a PDF of the online application click here. Only online applications submitted via https://imagine.nebraska.gov/apply/#StartYourApplication will be accepted.