Key figures
Nebraska advisory
2026, with sources
Credits that reach investors
Nebraska’s best-known startup incentive is aimed at the people funding the company. The Angel Investment Tax Credit, created in 2011 and expanded since, gives qualified investors a refundable state income tax credit on investments in early-stage, high-tech Nebraska companies with 25 or fewer employees and at least 51% of their workforce and payroll in the state. The Department of Economic Development certifies both the company and the investment, and the annual pool is capped.
For a founder raising a seed round from Nebraska angels, that means certification is part of the closing checklist. A SAFE round can qualify, but the company and its investors should check the program’s definition of a qualified investment before signing, because the credit is allocated in the order applications are approved.
Falling personal rates
Nebraska’s top individual rate is 4.55% for 2026, down from 5.20% in 2025, and the elective pass-through entity tax uses the same rate. Nebraska also offers a research credit under the Nebraska Advantage Research and Development Act and broader incentives under ImagiNE Nebraska; the Department of Revenue and DED publish the current rates and application rules, which change with each session.
Where founders go wrong in Nebraska
Most of Nebraska’s surprises are recent: the rate cuts, the $15 minimum wage and the paid sick time law all took effect between 2024 and 2026.
- Using the old 5.58% / 7.81% corporate brackets in a model — the rate is 4.55% flat for 2026.
- Missing the biennial occupation tax report on March 1 of even years.
- Forgetting the paid sick time clock when the eleventh employee joins.
- Planning payroll on the federal $7.25 when Nebraska’s minimum is $15.00.
- Treating installed software sold to Nebraska customers like SaaS.
The federal baseline
This page covers what Nebraska adds. The federal rules underneath it apply here too.
Common questions
Is there a Nebraska credit for our angel investors?
Nebraska’s Angel Investment Tax Credit gives investors a refundable state credit for investing in qualifying early-stage Nebraska companies — high-tech businesses with 25 or fewer employees and at least 51% of their workforce and payroll in Nebraska. The Department of Economic Development certifies the company and allocates the credits under an annual cap, so the company applies before the round closes, not after.
Does a 6-person startup in Omaha have to give paid sick time?
From October 1, 2025, only if the company has 11 or more employees. LB 415 narrowed the voter-approved law: employers with 10 or fewer are exempt, employees start accruing after an 80-hour waiting period, and use can be capped at 40 hours a year for employers with 11–19 employees and 56 hours for 20 or more.
Advisory next door
- SDSouth Dakota advisoryNo income tax means no R&D credit, NOL or QSBS question. The planning in South Dakota is about sales tax on services and SaaS.
- IAIowa advisoryIowa replaced its Research Activities Credit in 2026 with an IEDA-certified R&D credit of up to 3.5% of Iowa research spending, refundable and capped at $40 million a year. Individuals pay a flat 3.8%.
- MOMissouri advisoryMissouri’s research credit is capped and allocated by the Department of Economic Development. Since 2025, individuals pay no Missouri tax on capital gains.
- KSKansas advisoryKansas’s R&D credit is 10% of incremental research spending and transferable by companies with no tax to offset. Single sales factor from 2027 changes where Kansas income lands.
- COColorado advisoryNo statewide R&D credit, only the Enterprise Zone program. QSBS follows the federal rule. Most mistakes happen at the city level, in Denver especially.
- WYWyoming advisoryWyoming has no income tax for companies or people, so R&D credits, QSBS and NOL questions don’t arise; the planning issues are sales tax on downloaded software and keeping the registration current.
Founder guides on this
- SAFEsHow to account for SAFEs on your balance sheetA SAFE is cash today and shares later. Why it usually sits with liabilities, how the cap and discount set conversion, and what to book at the priced round.
- R&D taxThe R&D tax credit and Section 174A for startupsEngineering salaries can earn a federal R&D credit against payroll tax, and Section 174A lets you deduct US research again. What qualifies, what to track.
- EquityStock options, 409A valuations and vesting for startupsHow option strike prices are set by a 409A valuation, how vesting and the cliff work, and why ASC 718 makes every grant an expense on your P&L.
More of the Nebraska guide
- AccountingAccounting and state tax in NebraskaCorporate tax, conformity to federal rules, apportionment and what it does to your books
- ReceivablesReceivables and sales tax in NebraskaSales tax registration, economic nexus, whether SaaS is taxable, and collecting from customers
- PayablesPayables and contractors in NebraskaPaying vendors and contractors: 1099 filing, use tax, contractor tests and withholding
- PayrollPayroll taxes and employer rules in NebraskaWithholding, unemployment insurance, paid leave, minimum wage and the rules on paydays
- ComplianceCompliance and filings in NebraskaRegistering to do business, annual reports, franchise tax and the filing calendar
Sources
Checked against each agency’s own page on . Rates and thresholds change, usually on January 1.
General information for US companies, not tax, legal or accounting advice for yours. Rules and thresholds change; confirm the specifics with a CPA or the agency before you act on them.