Forest ProductsTax Credit Sourcebook

Nebraska · Small Business · NE-MICRO-001

Microenterprise Tax Credit

Publication revised September 24, 2026. Sourcebook page 176.

Credit amount / calculation

20% of increased investment plus compensation under approved project, subject to lifetime/program caps.

Eligibility and practical use

This credit is aimed below the scale of most headline economic-development programs. A small sawmill, firewood producer, pallet shop, or other closely held forest-products business can sometimes qualify with a modest investment and payroll increase. The administrative burden can still be real, so the credit is most useful when the business plans the growth rather than trying to reconstruct it afterward.

Illustrative business benefit

A small firewood and pallet business adds $180,000 of equipment and increases annual compensation by $70,000 as it grows from five to eight employees. If those increases fall within the approved project and the statutory formula, the credit can be meaningful at a scale where conventional economic-development programs would never engage.

Timing / first action

Seek approval before signing a purchase order, contract, lease or other binding commitment. Confirm the exact point at which a purchase order, contract, lease, or other binding commitment would make the project ineligible. An individual actively involved in operating an eligible very small forest-products business may qualify for a refundable individual income tax credit tied to growth in investment and compensation. Confirm the applicant, investment, compensation, and other program requirements.

Official sources

Related programs

Suggest a correction

Submissions are prepared with page context so they can become maintenance items for a future edition.

This button opens your email client with the page context filled in.