Urban Redevelopment Act

Home / Programs / Incentives / Urban Redevelopment Act Urban Redevelopment Act The Urban Redevelopment Act (URA) is Nebraska’s tax incentive program designed to grow small businesses and generate investment in Nebraska’s urban cores. Program Info   |  Definitions   |  Resources   |  Maps   |  FAQ r The Urban Redevelopment Act is no longer accepting applications as of May 6, 2025 due to the passage of LB650. Definitions Applicant An applicant is one or more persons listed in the application, or in an amendment to the application, who conducts business activities at the qualified location, and is part of the taxpayer. Base Year The base-year is the calendar year immediately preceding the year of application. Base Year Employee Base-year employee means any individual who was employed in Nebraska and subject to the Nebraska income tax on compensation received from the taxpayer or its predecessors during the base year and who is employed at the qualified location. Census Tract A census tract is a small statistical subdivision of a county determined by the United States Bureau of the Census and is uniquely numbered with a numeric code. Cumulative Investment The cumulative investment is all investment made on or after the date of application and prior to the end of the current year, less retirements of the value of owned property previously claimed and value of leases no longer in effect.  Cumulative investment determines whether the required investment level has been attained or maintained. Economic Redevelopment Area An economic redevelopment area is an area within the State of Nebraska in which: (1) The average rate of unemployment in the area during the period covered by the most recent federal decennial census or American Community Survey 5-Year Estimate by the United States Bureau of the Census is at least 150% of the average rate of unemployment in the state during the same period; and  (2) The average poverty rate in the area is 20% or more for the federal census tract in the area. Equivalent Employees Equivalent employees mean the number of employees computed by dividing the total hours paid in a year by the product of 40 times the number of weeks in a year.  This number is often referred to as the number of Full-Time Equivalent Employees or “FTEs.” Full-Time Employee.  A full-time employee is defined as described in Section 4980 of the Internal Revenue Code of 1986, as amended, and the regulations for this section. Investment Investment is the value of qualified property incorporated into or used at the qualified location.  For qualified property owned by the taxpayer, the value is the amount required to be capitalized for other recovery for federal tax purposes.  For qualified property rented by the taxpayer, the average net annual rent is multiplied by the number of years of the lease for which the taxpayer was originally bound, not to exceed 10 years.  This includes land that is rented in connection with, and incidental to, a building that is leased. Nebraska statewide average hourly wage for any year Nebraska statewide average hourly wage for any year means the most recent statewide average hourly wage paid by all employers in all counties in Nebraska as calculated by the Office of Labor Market Information of the Department of Labor using annual data from the Quarterly Census of Employment and Wages by October 1 of the year prior to application. Hourly wages shall be calculated by dividing the reported average annual weekly wage by forty. Number of New Employees Number of new employees means the number of equivalent employees that are employed at the qualified location during a year that are in excess of the number of base-year employees. Performance Period