If you’re a small-business owner who’s looking for help expanding the state of Nebraska has a program that can relieve some of the short-term burden of adding employees.


The microenterprise business tax credit is available for all small Nebraska businesses with 5 or fewer full-time equivalent employees. Owners don’t count against the employee ceiling. As you can imagine, this can be a really helpful tool for small business owners who have a track record of growth and are looking to keep growing. Like any government program this one takes a simple idea but throws in some bureaucratic hurdles that make having some professional help to work through the process extremely useful.


As an example of how this program works in the real world, at Cruise & Associates we have a client that we were able to help ensure received a $10,000 tax credit under this program. This company has eight employees, however two of them are the owners and two others are part time. So when I sat down and did the calculation I determined they had less than five full-time equivalent employees and therefore qualified to apply for the credit. This credit allows small businesses another tool to invest in, and grow their businesses.


Businesses that qualify, and apply for the credit, are eligible for a tax credit of up to $10,000 if they are planning on investing, or have invested $50,000 or more into their Nebraska-based business. In regards to the client I was talking about before, he has plans to buy a new semi-tractor in 2015 and therefore plans to spend a little over that $50,000 threshold.


It’s important to note that this tax credit is based on 20% of your investment of your investment into your business. If for example our client only invested $40,000; he would still be eligible for an $8,000 tax credit but not the full $10,000 maximum credit.


If you have any questions regarding the microenterprise tax credit or any other small business accounting issues please call Cruise & Associates for a free consultation.


NOTE: This information should not be considered as tax/legal advice. You should consult your tax/legal advisor regarding your own tax/legal situation