Renegotiation of leases in effect on date of application, where no material changes are made, other than expiration date. A credit is allowed each year of the entitlement period the taxpayer is at or above the required levels of investment, wages, and employment. The credit is equal to 5 percent of the amount on which total compensation paid exceeds the average compensation paid at the project times the number of equivalent base year employees. A credit equal to 10 percent of the investment in qualified property placed in service at the project on or after the date of application until the required levels are met and for each year of the entitlement period that the taxpayer is at or above the required levels of employment, investment, and wages. The credit may be carried over for up to three years after the end of the seven-year entitlement period.
Unused credits are nonrefundable.
Credits may be transferred with the project in certain situations, and may be taken by the new owner, if transferred in entirety or by a tax-free transaction under IRC 381. The State Tax Commissioner will annually make a report by industry group similar to the LB 775 report, showing investment, jobs, and wages paid. The report is due June 3 0.