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Economic Development Opportunity Grants for Your Community
The Building Entrepreneurial Communities (BECA) grant program is
now available for communities across Nebraska. The purpose
of the BECA program is to help economically depressed rural areas
of Nebraska build entrepreneurial communities through grants that
will create community capacity to build and sustain programs to
generate and retain wealth in the community and region.
Eligible applicants include every local government
(municipality or county). At least two local governments must collaborate
on the project. At least one of the local governments must have
chronic economic distress as indicated by:
· An unemployment rate which exceeds the statewide average unemployment
rate;
· A per capita income below the statewide average per capita income;
or
· Severe historical population loss, which means a population loss
of ten percent
or more over a twenty-year period of time (see listing of counties
with
chronic economic distress below)
Eligible activities must be projects that address
one of the following:
Provide education and technical assistance to energize small business
development and entrepreneurship
·
Provide technical assistance to facilitate small business transfer;
·
Build community business capacity and leadership programs;
·
Generate opportunities that will attract and retain young people
and families;
·
Provide education about philanthropy and intergenerational transfer
of wealth;
and
·
Build community endowments to support these activities.
The application deadline is August 1, 2006, to apply for a Building
Entrepreneurial
Communities (BECA) grant! $360,000 is available in grant money
for eligible applicants.
Grant recipients shall provide a dollar-for-dollar
cash match. Matching funds shall be from sources other than state
and federal programs. Grant application for complete with
qualifying towns and counties can be found at:
http://rdc.neded.org/library/BECA_App_Guideline2006.doc
Contact Linda Fettig, Rural Development Commission, 308-749-2291
(phone and cell)
linda.fettig@ded.ne.gov
to find out more about this opportunity.
Counties - Chronic Economic Distress:
Antelope, Arthur, ,Banner, Blaine, Boone, Box Butte, Boyd, Brown,
Burt, Butler, Cedar, Chase, Cherry, Clay, Colfax, Custer, Dakota,
Dawes, Dawson, Deuel, Dundy, Fillmore, Franklin, Frontier, Furnas,
Garden, Garfield, Grant, Greeley, Hall, Harlan, Hayes, Hitchcock,
Holt, Hooker, Jefferson, Johnson, Kearney, Keya Paha, Kimball, Knox,
Lincoln, Logan, McPherson, Madison, Morrill, Nance, Nemaha, Nuckolls,
Otoe,
Pawnee, Perkins, Polk, Red Willow, Richardson, Rock, Scotts Bluff,
Sheridan,
Sherman, Sioux, Thayer, Thomas, Thurston, Valley, Webster, and Wheeler.
Seven
Techquity Awards Made, 23 to go… (cover story)
New Community Development Corporation (NCDC) has made seven techquity
awards provided by the eBay Foundation Techquity Program. These
awards have been used by seven business owners to purchase a total
of more than $11,000 in technology equipment or software. The average
award size is $1225.00 with the maximum net award amount of $1550.00.
The awards covered nearly 80% of the purchase price of the technology;
the entrepreneurs covered approximately 20% of the cost. Many of
the owners have also taken advantage of the technological training
available. We are partnered with Creighton University at Bryant
Center and Metropolitan Community College to provide technology
training for our clients. Again, we will cover 80% of the cost of
the class with the clients paying 20%.
Here is what Barbara Carlisle, a techquity awardee, had to say about
the program: “As a small business owner of Bright ‘N’
Clean I didn’t know where to start. There were so many questions
that needed to be answered and no one to answer them. I was introduced
to NCDC by a member that was currently attending the small business
development training classes. She informed me of the date and time
of the next class and I signed up at a fee that was affordable.
Attending this class answered questions I [had] to keep my business
going in the right direction.
NCDC also provides other helpful resources that can help you succeed
like the eBay Techquity Award, setup to help business owners like
me to become more efficient …with the right software and equipment
to do it.
Thanks goes out to NCDC…, eBay [Foundation] and all others
who help business owners get off to the right start. May God bless
you to keep helping other business owners who don’t know how
to get started.”
With her techquity award Barbara was able to purchase a new computer,
printer, and software from Office Depot. She later went on to attend
technology classes at Creighton University at Bryant Center to teach
her how to operate her computer and the software on it.
We want to make an award to you. If you are a current business owner
that is a NCDC client, past or present, and are in need of technology,
contact us to receive an application. Once it is initially screened,
you will receive the remaining instructions detailing what you will
need to submit to complete the process. You have nothing to lose.
So, please, don’t let this opportunity pass you by. We have
made seven techquity awards; need to make 23 more by the end of
July 2006. Wouldn’t it be foolish to not take advantage of
such a rare offering? Contact us today!
For information about the program, please call Tamara Westbrook
at 451-2939.
Nebraska Advantage
Microenterprise Tax Credit Act
The Nebraska Legislature passed a bill in the 2005 session to provide
tax credits for micro businesses in Nebraska. The following
information sets out details regarding this act. An application
to receive the tax credits may be obtained at the Nebraska Department
of Revenue website at
www.revenue.ne.gov or call 402-472-5790.
What is
the Nebraska Advantage Microenterprise Tax Credit Act?
This is a refundable
tax credit. The credit is 20% of new investment or employment.
A new investment
is increase in purchases of buildings and depreciable personal property
other than vehicles. Leased property works under this program.
An increase in average net annual rents multiplied by years of the
lease not to exceed 10 years.
Examples –
purchased $40,000 in equipment last year and purchased $100,000
this year
$60,000 x 20% = $12,000 for
a maximum credit of $10,000.
-
Renewed building
lease fore three years. The annual lease payment increased
from $36,000 per year to $48,000 per year - $12,000/year x 3 years
x 20% = $7,200 credit
-
The three resident
employees each received a $1,500 raise in the year of application
- $1,500 x 3 employees x 20% = $900 credit
New employment
qualifies under this program. An increase in compensation
over compensation in the tax year prior to application qualifies.
This is not only new employees, but also existing employees.
There is a life
time limit of $10,000 for the applicant and related party.
Related parties include unitary group, Section 267(b) and (c), Section
707 (b) of IRC, parent, child and sibling.
The reported
information includes the total authorized, used and expired credits
and amount of employment and investment made.
- An application
is required (see contact information above) but there is not a
fee.
- Applications
may be filed for calendar years beginning 1/1/06 through 12/31/10
- The
total limit for the program per year is $2 million. The
Nebraska Department of Revenue may carry-over credits that were
not granted in the prior year in addition to the $2 million limit.
- Applicants
may not be participating in Nebraska Advantage, Nebraska Advantage
Rural or LB775 for the same tax years.
What must
I do to qualify?
- Applicant
must be actively involved in microbusiness with five or fewer
employees (not a test by new location but by owner). The
current definition of five employees is five people, not five
full-time equivalents. The Legislature is considering a
change to this definition in the 2006 session.
- Operate in
a distressed area, federal enterprise zone or census tract wit6h
less than 80% statewide per capita income – all areas
of the state except for parts of Washington, Douglas, Sarpy, Lancaster,
Kearney, and Scotts Bluff Counties. Check with Department
of Revenue website at www.revenue.ne.gov to be sure your area
qualifies.
- Must be a
taxpayer subject to income tax or at least 90% of owners of the
flow-thru entity are subject to income tax
- The question
is not what activity the business performs. For example:
retailers, contractors, dentists, farmers are all allowable, in
addition to other business types.
The total
lifetime credits claimed by any taxpayer and any related person
is $10,000. For example, if two brothers apply for separate
and distinct business activities, they cannot both claim $10,000
credit.
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