How I Helped a Small Business Get $20,000 Back
Imagine running a small business and discovering you're eligible for a $20,000 check from the government—simply by starting your business and investing in it.
That’s exactly what happened to a family-owned martial arts studio here in Nebraska. They opened their doors in June 2024, signing a lease and setting up their marital arts school for success. I partnered with them right from the start, setting up their accounting systems, managing their books through QuickBooks Online (QBO), and advising on strategic financial decisions.
The Hidden Opportunity
From the beginning, I knew they could benefit significantly from the Nebraska Microenterprise Tax Credit. Surprisingly, when researching and contacting several other CPA firms for them, not one mentioned this credit. Luckily, I made sure they knew about it early on.
What is the Nebraska Microenterprise Tax Credit?
In plain English: Nebraska rewards small businesses owners for investing in their growth right from the beginning. If your business has 5 or fewer employees and invests in essentials like equipment, facility leases, advertising, or employee pay, the state gives you back 20% of those investments as a refundable tax credit—up to $20,000.
"Refundable" is key. It means even if your tax bill is small or zero, the state sends you a check for the full credit amount. It’s literally cash back in your pocket.
Why Timing Was Everything
Applying in their first year (2024) was critical. Because they started with a lease and significant initial setup expenses, they qualified for the full $20,000. Had they waited until their second year (2025) to apply, they would have only qualified for a small fraction of this amount.
Good News for Existing Businesses
The Nebraska Microenterprise Tax Credit isn’t just for new businesses. Existing Nebraska businesses with five or fewer full-time employees also qualify if they invest in growth. If your established business is making new investments—like upgrading facilities, purchasing new equipment, increasing payroll, or expanding marketing efforts—you could still qualify for significant savings.
$20,000 They Didn’t Expect
After guiding them through compiling expenses and completing the application, they got approved for the full credit. This was a huge win as it allowed them to recoup a significant portion of their startup costs through this tax credit.
Why Businesses Miss Out
Sadly, most businesses miss these opportunities because:
They simply don't know the credits exist.
Standard tax preparers and accountants rarely go beyond basic tax filing.
Many assume they're not eligible or find the process too intimidating.
How to Avoid Leaving Money on the Table
Here’s how you make sure you’re not missing out:
Be Proactive: Work with an advisor who actively seeks out financial opportunities.
Local Expertise Matters: State-specific credits require local knowledge—ensure your advisor knows the landscape.
Act Early: Credits often have strict deadlines and application timing matters greatly.
Your Own $20,000 Moment?
Are you planning or recently opened your business? Or maybe you're already established and looking to grow? Investing in equipment, leases, or advertising? You might already qualify for significant incentives. Having the right advisor can make all the difference.
At Leading Stone Financial, I specialize in finding hidden opportunities like these. I don’t just keep track of your money—I actively look for ways to help you grow it.
Ready to uncover your financial potential?
Book a free FIT CALL today, and let’s discover your next big win.
