Governor Visits Hayneedle, Inc. to Highlight Opportunities of New Angel Investment Tax Credit

Businesses have access to new development tools via Talent & Innovation Initiative
(Omaha, Neb.) Gov. Dave Heineman today visited Hayneedle, Inc. an Omaha-based online company to highlight opportunities for Nebraska businesses to benefit from new tools created to help businesses harness technology and research in expanding their workforce.
Passed during this year’s legislative session, the four-part the Talent & Innovation Initiative was developed to enhance momentum in Nebraska’s fastest growing industries and others positioned to integrate new technologies.
“The Talent and Innovation Initiative is targeted to help build Nebraska’s innovation economy,” Gov. Heineman said. “We are reaching out to let Nebraska communities from border to border know about the new opportunities available. We want to develop business opportunities in industries positioned for growth in Nebraska, and we want to attract new, technology-focused companies to our state.”
The Talent & Innovation Initiative was created to advance business innovation and strengthen workforce recruitment in Nebraska. It increases internship opportunities for college students, promotes business innovation, invests in new sites and buildings for commercial development, and encourages investment in Nebraska’s high-tech and start-up businesses.
The Angel Investment Tax Credit encourages investment in high-tech and other startup enterprises in Nebraska by providing refundable state income tax credits to qualified investors of early-stage companies. Capped at $3 million annually, the program requires a minimum investment of $25,000 for individuals and $50,000 for investment funds. Eligible businesses will have fewer than 25 employees with the majority based in Nebraska.
Gov. Heineman said, “We created the Angel Investment Tax Credit to match potential investors with new, innovative companies in a position to grow and in need of the resources to make it happen. Angel investors provide the early start-up capital that is critical to a company like Hayneedle. They help start-up companies secure the investment they need to grow faster. What sets Nebraska’s Angel Investment Tax Credit apart is that it is refundable and accessible to a wide range of industries.”
Qualified businesses, investors and investment groups will have to be certified by the Nebraska Department of Economic Development (DED) and will be processed on a first come, first approved basis. The Nebraska Department of Revenue will process annual refunds for approved companies demonstrating their investments. Additional information will be available in August, ahead of the program’s Sept. 1 implementation.
InternNebraska creates new internship opportunities for college and university students in partnership with Nebraska businesses, giving 500 to 750 college students an opportunity to gain job experience. It provides a 40 percent match in urban areas and a 60 percent match in rural areas for an eligible business that create up to 10 new student internship opportunities. Students must be enrolled full-time at a college or university, and be a junior or senior or be in their second year at a community college. Eligible internships must pay at least minimum wage and can range from 12 week to year-long programs. Applications are being accepted from businesses creating summer internships and those planning for fall 2011 and spring 2012 internships.
Funded with $1.5 million a year in job training funds, awards will be made on a first-come, first-serve basis. Additional information is available at www.InternNE.com. Questions can be directed to Allison Hatch at (402) 471-3368 or allison.hatch@nebraska.gov.
Other Talent & Innovation measures include a new:
•Business Innovation fund, available starting in October, will help businesses develop and introduce new technologies to their business model. It will provide competitive grants for businesses to work with Nebraska research institutions on prototype development, commercialization and applied research projects. Funding will also be available to help expand small business and entrepreneur outreach efforts.
•Site & Building Development funding will help the state partner with local communities to provide resources that create ready-to-go industrial and commercial sites for expanding businesses. Projects can assist with demolition, new construction and rehabilitation. State funding will be focused on land and infrastructure costs with 40 percent of funding dedicated to projects outside Douglas, Lancaster and Sarpy Counties. The program will be available starting Oct. 1.
Eligibility for some programs may be limited to companies in targeted industries, including: agricultural machinery, food processing, renewable energy, biosciences, health sciences, precision metals manufacturing, transportation-warehousing and logistics, research and development, hospitality and tourism, business management, financial services, and computer and software service providers.