Nebraska is known for its corn, which is used not only as livestock feed and for food products but also in the production of bioplastics and ethanol. In fact, the Cornhusker State is the second largest ethanol-producing state in the U.S. Top industries include agriculture, manufacturing, transportation, and trade.
Reasons for doing business in Nebraska
One advantage of doing business in Nebraska is the state’s low cost of doing business. In CNBC’s Top States for Business report, Nebraska was given a B+ for this category. The report takes into account factors such as tax climate, labor costs, real estate costs, and tax breaks and incentives that the state provides to reduce business costs. Nebraska offers a range of sales tax exemptions, such as exemptions for manufacturing equipment purchases and utilities used in manufacturing. Plus, there is no tax on inventory.
Nebraska also tends to perform well when it comes to quality-of-life measures. For those looking to relocate, the state offers clean air, lower housing costs, and abundant health care resources.
What is the cost of doing business in Nebraska?
Nebraska’s corporate income tax rates are 5.58% and 7.25%, and its income tax rates range from 2.46% to 6.64%. The state sales tax rate is 5.5%, and there is a max local sales tax rate of 2%.
In May 2023, Governor Pillen signed a tax cuts package that would reduce the top corporate and individual income tax rates to 3.99% by tax year 2027.
What is the state of Nebraska’s infrastructure?
Nebraska is a major transportation hub. With the state’s vast infrastructure network and central location, a business within the state could reach either coast within two to three days by truck or by train. Nebraska has also been working on building its broadband infrastructure. In January 2023, Governor Pillen announced the creation of a Broadband Office to improve broadband access across the state.
U.S. News & World Report ranked Nebraska fifth in the nation for its infrastructure.
What are the challenges of doing business in Nebraska?
Businesses in Nebraska may find that workers are in short supply. Although Nebraska’s population has grown in recent years, more people are leaving than entering the state. Of particular concern is the outmigration of individuals with a bachelor’s degree or more.
Having access to capital may be another challenge for Nebraska businesses.