Nebraska Innovation Fund (NIF) Prototype Grants

NIF Prototype Grants

Funds prototype development for Nebraska businesses turning ideas into first market-ready products.

Eligibility · United States · US-NE

The Nebraska Innovation Fund (NIF) Prototype Grants program is administered by the Nebraska Department of Economic Development (NE DED) as one of four programs under the state's Business Innovation Act. The program awards matching grants of up to $150,000 per project to Nebraska-based for-profit businesses with fewer than 500 employees that are developing new products or improving existing processes in non-retail primary industries. Eligible cost categories include employee wages, contractor fees, materials, and limited equipment and tooling. Value-added agriculture projects receive favorable treatment throughout.

Applicants must cover at least 50% of total project costs from non-state funds — reduced to 25% for value-added agriculture projects. NE DED reimburses eligible expenses at 66% of costs incurred (80% for value-added agriculture), meaning the grant is paid in arrears against verified invoices rather than as an upfront award. Projects must be completed within 24 months of the award date. The FY 2026–27 funding window opens on or before July 1, 2026, and applications are accepted on a rolling basis until funds are exhausted. Applications require a business plan and documented evidence of the matching contribution.

The program is best suited to manufacturers, agricultural processors, and hardware or materials companies headquartered and operating in Nebraska. Retail businesses and businesses primarily serving local markets are explicitly excluded. To maximize competitiveness, applicants should submit early in the fiscal year window before the pool is depleted, arrive with a well-documented prototype plan, and ensure all team members and activities are Nebraska-based. Contact is Ben Kuspa at NE DED (ben.kuspa@nebraska.gov, 402-613-8119).