Funding
Building a business takes capital. Nebraska has more options than most founders realize. This page covers the funding programs, tax credits, and state incentives available to Nebraska businesses — from early-stage grants to R&D tax credits to economic development programs through DED.
Nebraska Innovation Fund (NIF) Prototype Grant
A matching grant for Nebraska businesses engaged in new product development. One of the most founder-friendly state grants available — non-dilutive, rolling applications, and accessible to early-stage companies.
Covers eligible expenses including wages, prototype materials, and limited preapproved tooling or equipment costs
Maximum funding of $150,000 per project
Requires a minimum 50% match from the applicant; DED reimburses at 66% of project costs
Value-added agriculture projects require only a 25% match; DED reimburses at 80%
Must have fewer than 500 employees and operate in Nebraska in a non-retail industry
Applications accepted on a rolling basis until funds are exhausted
💰 Up to $150,000; 50% match required (non-dilutive grant)
Nebraska Grant Programs
Nebraska Academic Research & Development Grant
A competitive matching grant for Nebraska businesses partnering with a Nebraska college or university to fund R&D that leads to new or improved products, processes, or innovations.
Phase I awards capped at $100,000; Phase II awards capped at $400,000
Phase II eligibility requires successful completion of a Phase I award; DED will not grant more than two awards in any four-year period per project
Cash match of 50% of project costs required; value-added agriculture projects require only a 20% cash match
Eligible uses include applied research, new product development, testing and validation, and tech transfer from a Nebraska university
Must be a for-profit business with physical operations in Nebraska
Applications reviewed every other week by DED staff; responses expected within 2–5 weeks
Applications accepted on a rolling fiscal year basis (July 1 – June 30) until funds are exhausted
💰 Up to $100,000 (Phase I) / $400,000 (Phase II); 50% match required (non-dilutive grant)
Applying for the Academic R&D Grant? You'll need a university partner. Contact UNL Industry Relations to find the right researcher — industryrelations@unl.edu
Nebraska SBIR/STTR Matching Grant
A state matching grant for Nebraska businesses that have received — or are applying for — a federal Small Business Innovation Research (SBIR) or Small Business Technology Transfer (STTR) award. Designed to amplify federal R&D dollars with state funding and keep innovative companies building in Nebraska.
Phase 0: Up to $5,000 to reimburse costs incurred in preparing a federal Phase I proposal
Phase 1: Matches federal SBIR/STTR awards up to $150,000 or 65% of the federal grant, whichever is less
Phase 2: Matches federal SBIR/STTR awards up to $300,000 or 65% of the federal grant, whichever is less
Must be a for-profit small business conducting at least 51% of proposed activities in Nebraska
Must meet federal SBIR/STTR eligibility requirements
DED may award up to $4 million per year across the program
Applications accepted on a rolling fiscal year basis
💰 Up to $300,000 depending on phase; match tied to federal award (non-dilutive grant)
Nebraska Microenterprise Assistance Program
This DED program funds nonprofit organizations across Nebraska to deliver microlending and business technical assistance to small businesses in distressed communities — rural and urban. You don't apply to DED directly; instead, connect with one of the contracted providers below.
Micro-lending: small business loans for entrepreneurs who may not qualify for traditional financing
Technical assistance: business training, mentoring, and coaching
Serves both rural and urban areas of Nebraska
Particularly useful for early-stage businesses, sole proprietors, and founders in underserved communities
Find help through a contracted provider:
Catholic Charities — technical assistance, business training, and micro-lending → ccomaha.org
Community Development Resources (CDR) — capital, technical assistance, and training statewide → cdr-nebraska.org
Grow Nebraska — business training, technical assistance, promotion, and marketing → grownebraska.org
Nebraska Enterprise Fund — training, mentoring, direct micro-lending, and loan guarantees → nebbiz.org
Northeast Nebraska Economic Development District — business loans → nenedd.org
Center for Rural Affairs (CFRA) — technical assistance, training, and micro-lending → cfra.org
Lending Link — small business loans via micro-lending → lendinglinkomaha.org
McCook Economic Development Corporation — small business loans via micro-lending → mccookne.org
Nebraska Seed Investment Program
An equity investment program for early-stage Nebraska businesses commercializing a product, process, or technology. Administered by Invest Nebraska on behalf of DED.
Up to $500,000 in seed investment per project
Requires a 1:1 match from private sources raised within the past six months (value-added agriculture projects require only a 25% match)
Eligible businesses must be high-growth, early-stage companies with the potential to raise private capital
Must have 500 or fewer employees and be operating in Nebraska
Business plan or pitch deck required to apply
Applications accepted on a rolling fiscal year basis (July 1 – June 30) until funds are exhausted
Note: this is an equity investment, not a grant — DED takes a stake in your company via Invest Nebraska
💰 Up to $500,000 equity investment; 1:1 match required
📧 Contact: Shelby Strattan, Invest Nebraska — shelby@investnebraska.com
Nebraska Advantage Research & Development Tax Credit
A refundable state tax credit for Nebraska businesses that invest in research and development activities. No application is required upfront — you claim it on your tax return.
Credit equals 15% of the federal R&D tax credit allowed under IRC § 41 for qualifying Nebraska research activities
Enhanced credit of 35% for R&D activities conducted on a Nebraska college or university campus or at a university-owned facility
Credit can be applied as a refund of sales and use taxes paid, or as a refundable income tax credit
Available for the first tax year claimed and for the following 20 tax years, as long as the business continues to earn the federal credit
Startups can qualify — the federal R&D credit includes a payroll tax offset option for early-stage companies
No pre-application required — claim using Nebraska Form 3800N and Worksheet RD
E-Verify compliance required for all Nebraska hires
💰 No cost to apply; credit value tied to qualifying R&D expenditures
📞 Questions: Kate Knapp, Nebraska Dept. of Revenue — 402-471-5773
Nebraska Tax Credits & Incentives
Nebraska Advantage Microenterprise Tax Credit
A refundable tax credit designed for small business owners who are actively growing their business. One of the more accessible state incentives for early-stage and Main Street businesses.
20% refundable individual income tax credit on demonstrated growth over two years — based on increases in new investment or new employee compensation
Lifetime maximum of $20,000 per applicant (and any related persons or the microbusiness combined)
Eligible for businesses with five or fewer employees at the time of application, including startups
Credits authorized up to $2 million per calendar year, approved on a first-come, first-served basis
Qualifying growth includes wages, buildings, certain expenses, and non-vehicle depreciable property
Must be actively involved in daily management and operations of the business
E-Verify registration required if you have or plan to hire employees
Application submitted through Nebraska Dept. of Revenue's secure file sharing system
💰 No cost to apply; credit value based on qualifying growth
📞 Questions: Nebraska Taxpayer Assistance — 800-742-7474
ImagiNE Nebraska Act
Nebraska's primary business tax incentive program for companies starting, expanding, or relocating in Nebraska. Replaces the older Nebraska Advantage Act with a streamlined, tiered structure.
Eight application levels based on investment amount, job creation, and location
Tax credits can offset state income tax, withholding liability, sales and use tax, job training costs, recruitment costs, and employer-sponsored childcare costs
Credit types include wage credits and investment credits
Available to businesses of all sizes and industries
As of June 2025, 112 active signed agreements projecting $4.3 billion in investment and 3,719 new jobs
Apply through the Nebraska Department of Economic Development
💰 Credit value varies by level, investment, and hiring