Starting and growing a small business is hard work, but the Nebraska Advantage Microenterprise Tax Credit makes it easier by incentivizing new investments.

Designed to promote the expansion of small businesses across the state and, in doing so, strengthen our communities, the Microenterprise Tax Credit is available to businesses with five or fewer employees. About 145,000 Nebraska businesses are eligible for the credit.

If approved, applicants will receive a 20 percent tax credit on business investments for a maximum lifetime credit of $10,000. All applicants must be personally involved in the day-to-day operation of the business. Agricultural businesses with more than $500,000 in assets can only use the tax credit for a limited set of activities, such as agritourism, aquaculture, or producing fruits.

Eligible expenditures include building expansion, increased employee wages and purchasing of equipment, among others. The expansion must develop new income or jobs. To apply, documentation verifying the business' finances, similar to those required when applying for a loan, will be needed.

There is $2 million available on a first-come first-serve basis, so it is important for interested business owners to apply as soon as possible. Potential applicants have until Nov. 1 before it will be considered on the following year's tax cycle.

For more information on the program and to access the application, visit revenue.nebraska.gov/incentives/microenterprise.