reglab/statecodes huggingface dataset:
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-27,161 - Terms, defined.

77-27,161.
Terms, defined.
For purposes of sections 77-27,160 to 77-27,173, unless the context otherwise requires:
(1) Debt shall mean any liquidated amount due and owing any claimant which has accrued through assignment, contract, subrogation, court judgment, or operation of law, regardless of whether there is an outstanding judgment for such amount, and which is for the care, support, or maintenance of a child or for spousal support and shall include the costs of health services subject to section 77-27,163.01;
(2) Debtor shall mean any individual owing money to or having a delinquent account with any claimant which has not been satisfied by court order, set aside by court order, or discharged in bankruptcy;
(3) Claimant shall mean:
(a) The Department of Health and Human Services with respect to collection of a debt owed by a parent in a case involving a recipient of aid to dependent children in which rights to child, spousal, or medical support payments have been assigned to this state;
(b) An individual who is not eligible as a public assistance recipient and to whom a child, spousal, or medical support debt is owed; or
(c) Any person or entity entitled to receive child support, spousal support, or medical support as defined in section 43-1712.01 pursuant to an order issued by a court or agency of another state or jurisdiction, including an agency of another state or jurisdiction to which a person has assigned his or her right to receive such support. Such a claimant shall submit certification and documentation sufficient to satisfy the requirements of section 43-1730;
(4) Refund shall mean any Nebraska state income tax refund which the Department of Revenue determines to be due an individual taxpayer. In the case of a joint income tax return, it is presumed that each partner to the marriage submitting such return contributed one-half of the earnings upon which the refund is based. The presumption may be contested by the state, the delinquent taxpayer, and the innocent spouse by virtue of the hearing process prescribed in section 77-27,169;
(5) Spousal support shall have the same meaning as in section 43-1715; and
(6) State lottery prize shall mean any lottery prize in excess of five hundred dollars to be awarded to an individual pursuant to the State Lottery Act upon presentation of a winning lottery ticket to the Lottery Division of the Department of Revenue for redemption.
Source
Laws 1984, LB 845, § 7;
Laws 1985, Second Spec. Sess., LB 7, § 77;
Laws 1991, LB 457, § 45;
Laws 1993, LB 138, § 72;
Laws 1994, LB 1224, § 85;
Laws 1996, LB 1044, § 798;
Laws 1997, LB 307, § 200.
Cross References
State Lottery Act, see section 9-801.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-27,162 - Collection system; development; duties.

77-27,162.
Collection system; development; duties.
The Department of Revenue, the Department of Administrative Services, and the Department of Health and Human Services shall develop and implement a collection system to carry out the intent of section 77-27,160.
Source
Laws 1984, LB 845, § 8;
Laws 1996, LB 1044, § 799;
Laws 2007, LB296, § 705.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-27,163 - Collection system; additional remedy.

77-27,163.
Collection system; additional remedy.
The collection remedy authorized by sections 77-27,160 to 77-27,173 is in addition to and not in substitution for any other remedy available by law.
Source
Laws 1984, LB 845, § 9.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-27,163.01 - Costs of health services; setoff; Department of Health and Human Services; duties; amount of setoff; priority of claims.

77-27,163.01.
Costs of health services; setoff; Department of Health and Human Services; duties; amount of setoff; priority of claims.
The Department of Health and Human Services shall use the procedures in this section and sections 77-27,160 to 77-27,173 to setoff against a debtor's income tax refund the costs of health services provided to a child of the debtor if:
(1) The debtor is required by court or administrative order to provide coverage for the costs of such services; and
(2) The debtor has received payment from a third party for the costs of such services but has not used the payment to reimburse either the other parent or guardian or the provider of such services.
The amount of the setoff shall be limited to the amount necessary to reimburse the department for its expenditures for the costs of such services under the medical assistance program established pursuant to the Medical Assistance Act. Any claim for current or past-due child support shall take priority over a claim for setoff for the costs of health services.
Source
Laws 1994, LB 1224, § 86;
Laws 1996, LB 1044, § 800;
Laws 1997, LB 307, § 201;
Laws 2006, LB 1248, § 86.
Cross References
Medical Assistance Act, see section 68-901.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-27,164 - Department of Health and Human Services; adopt rules and regulations.

77-27,164.
Department of Health and Human Services; adopt rules and regulations.
The Department of Health and Human Services shall adopt and promulgate rules and regulations necessary to carry out the purposes of sections 77-27,160 to 77-27,173.
Source
Laws 1984, LB 845, § 10;
Laws 1996, LB 1044, § 801;
Laws 1997, LB 307, § 202.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-27,165 - Notice of claim to debtor; contents.

77-27,165.
Notice of claim to debtor; contents.
The Department of Health and Human Services shall send notification to the debtor of the assertion of the department's rights, or of the rights of an individual not eligible as a public assistance recipient, to all or a portion of the debtor's income tax refund. The notice shall contain the procedures available to the debtor for protesting the offset, the debtor's opportunity to give written notice of intent to contest the validity of the claim before the department within thirty days of the date of mailing the notice, and the defenses the debtor may raise. The debt shall be certified by the department through a preoffset review.
Source
Laws 1984, LB 845, § 11;
Laws 1996, LB 1044, § 802;
Laws 1997, LB 307, § 203;
Laws 2010, LB849, § 29.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-27,166 - Submission of certified debt; when effective; Lottery Division of the Department of Revenue; duties.

77-27,166.
Submission of certified debt; when effective; Lottery Division of the Department of Revenue; duties.
(1) The Department of Health and Human Services may submit any certified debt of twenty-five dollars or more to the Department of Revenue except when the validity of the debt is legitimately in dispute. The submission of debts of past due support shall be a continuous submission process that allows the amount of past due support to fluctuate up or down depending on the actual amount owed. Any submission shall be effective only to initiate setoff for a claim against a refund that would be made for the calendar year subsequent to the year in which such submission is made.
(2) The Lottery Division of the Department of Revenue shall review all current debts on the records of the Department of Health and Human Services at the time of redeeming a lottery ticket for a state lottery prize to certify a debt owed by a winner of a state lottery prize.
Source
Laws 1984, LB 845, § 12;
Laws 1993, LB 138, § 73;
Laws 1996, LB 1044, § 803;
Laws 1997, LB 307, § 204;
Laws 2009, LB288, § 36.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-27,167 - Notice of pending refund or state lottery prize.

77-27,167.
Notice of pending refund or state lottery prize.
If a debtor identified by the Department of Health and Human Services pursuant to section 77-27,165 or 77-27,166 is determined by the Department of Revenue to be entitled to a refund of twenty-five dollars or more or a state lottery prize, the Department of Health and Human Services shall be notified that a refund or prize is pending.
Source
Laws 1984, LB 845, § 13;
Laws 1993, LB 138, § 74;
Laws 1996, LB 1044, § 804;
Laws 1997, LB 307, § 205.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-27,168 - Notice of claim to refund or state lottery prize; contents.

77-27,168.
Notice of claim to refund or state lottery prize; contents.
(1) Upon receipt of notification pursuant to section 77-27,167 that a debtor is entitled to a refund or a state lottery prize, the Department of Health and Human Services shall, within twenty days, send written notification to the debtor of an assertion of its rights, or of the rights of an individual not eligible as a public assistance recipient, to all or a portion of the debtor's refund or state lottery prize.
(2) The written notification shall clearly set forth the basis for the claim to the refund or state lottery prize, the intention to apply the refund or state lottery prize against the debt to a claimant, the debtor's opportunity to give written notice of intent to contest the validity of the claim before the Department of Health and Human Services within thirty days of the date of the mailing of the notice, the mailing address to which the application for a hearing must be sent, and notice that failure to apply for a hearing in writing within the thirty-day period will be deemed a waiver of the opportunity to contest the claim, causing a setoff by default.
In the case of a joint tax return, the notice shall also state the name of the taxpayer named in the return, if any, against whom no debt is claimed. There shall be no affirmative duty placed upon the non-owing spouse of an intercepted tax return to initiate an action to receive payment of the noninterceptable amount.
Source
Laws 1984, LB 845, § 14;
Laws 1993, LB 138, § 75;
Laws 1996, LB 1044, § 805;
Laws 1997, LB 307, § 206.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-27,169 - Debtor; application for hearing; when effective; hearing.

77-27,169.
Debtor; application for hearing; when effective; hearing.
A written application, pursuant to sections 77-27,165 and 77-27,168, by a debtor for a hearing shall be effective upon mailing the application, postage prepaid and properly addressed, to the Department of Health and Human Services.
If the Department of Health and Human Services receives a written application contesting a claim, it shall grant a hearing to the taxpayer or state lottery prize winner to determine whether the claim is valid. If the amount asserted as due and owing is not correct, an adjustment to the claimed amount shall be made. No issues shall be reconsidered at the hearing which have been previously litigated.
Source
Laws 1984, LB 845, § 15;
Laws 1993, LB 138, § 76;
Laws 1996, LB 1044, § 806;
Laws 1997, LB 307, § 207.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-27,170 - Appeal.

77-27,170.
Appeal.
Any appeal of an action taken at or as a result of a hearing held pursuant to section 77-27,169 shall be in accordance with the Administrative Procedure Act.
Source
Laws 1984, LB 845, § 16.
Cross References
Administrative Procedure Act, see section 84-920.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-27,171 - Certification of debt; when; procedure; deduction from refund or state lottery prize.

77-27,171.
Certification of debt; when; procedure; deduction from refund or state lottery prize.
(1) Upon final determination of the amount and validity of the debt due and owing by means of the hearing provided for in section 77-27,169 or by the taxpayer's default through failure to request a hearing pursuant to section 77-27,168, the Department of Health and Human Services shall certify the debt to the Department of Administrative Services within twenty days from the date of the final determination. The final determination shall not delay a refund beyond the period prescribed in section 77-2794.
(2) Upon receipt of the certified debt amount from the Department of Health and Human Services, the Department of Administrative Services shall deduct an amount equal to the certified debt from the refund or state lottery prize due the debtor, up to the amount of the refund or state lottery prize, and shall transfer such amount, by noncash voucher, to the Department of Health and Human Services. In nonpublic assistance cases, the Department of Health and Human Services shall transmit the funds collected to the clerk of the district court for dispersal to the payee. The Department of Administrative Services shall refund or award any remaining balance to the debtor as if the setoff had not occurred.
Source
Laws 1984, LB 845, § 17;
Laws 1993, LB 138, § 77;
Laws 1996, LB 1044, § 807;
Laws 1997, LB 307, § 208.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-27,172 - Completion of setoff; notice.

77-27,172.
Completion of setoff; notice.
When the Department of Health and Human Services receives all or a portion of a certified debt pursuant to section 77-27,171, the department shall notify the debtor of the completion of the setoff. Such notice shall include the final amount of the refund or state lottery prize to which the debtor was entitled prior to the setoff, the amount of the certified debt, and the amount of the refund or state lottery prize in excess of the debt, if any.
Source
Laws 1984, LB 845, § 18;
Laws 1993, LB 138, § 78;
Laws 1996, LB 1044, § 808;
Laws 1997, LB 307, § 209.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-27,173 - Costs of setoffs; reimbursement.

77-27,173.
Costs of setoffs; reimbursement.
The Department of Health and Human Services shall reimburse the Department of Revenue and the Department of Administrative Services for all reasonable and necessary costs incurred by the Department of Revenue and the Department of Administrative Services in setting off debts pursuant to sections 77-27,160 to 77-27,173.
Source
Laws 1984, LB 845, § 19;
Laws 1996, LB 1044, § 809;
Laws 1997, LB 307, § 210.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-27,175 - Agency, defined.

77-27,175.
Agency, defined.
As used in the Tax Refund Setoff Act, unless the context otherwise requires, agency shall mean the Department of Revenue, any other body in the executive branch of state government, any political subdivision of this state, or the federal Internal Revenue Service.
Source
Laws 1985, LB 273, § 2;
Laws 1987, LB 523, § 29.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-27,176 - Purpose of act; limitation.

77-27,176.
Purpose of act; limitation.
The purpose of the Tax Refund Setoff Act is to provide the Tax Commissioner with the authority to enter into an agreement with the Commissioner of Internal Revenue to establish a reciprocal tax refund setoff system substantially similar to such act. The Tax Commissioner shall not enter into such agreement unless the Commissioner of Internal Revenue is authorized by federal law to enter into a substantially similar agreement offsetting delinquent state taxes.
Source
Laws 1985, LB 273, § 3.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-27,177 - Tax refund setoff system; operation.

77-27,177.
Tax refund setoff system; operation.
The tax refund setoff system shall allow the state government to offset a person's delinquent federal tax liability against any state tax refund due to such person. The delinquent tax liability shall include all tax liability, interest, penalties, fees, and any other charges accruing pursuant to the taxing laws of the federal government. This tax refund setoff system shall be in addition to and not a substitute for any other remedy available to collect such delinquencies.
Source
Laws 1985, LB 273, § 4.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-27,178 - Delinquent federal tax liability; identification; joint tax return; presumption.

77-27,178.
Delinquent federal tax liability; identification; joint tax return; presumption.
The Commissioner of Internal Revenue shall provide a system to identify persons having delinquent tax liability under federal taxing laws.
On or before dates specified in the agreement, the Commissioner of Internal Revenue shall supply the Department of Revenue with information necessary to identify such persons and shall certify in writing the amount of the liability. Such information shall be confidential.
In the case of a joint tax return it shall be presumed that each spouse contributed one-half of the amount upon which the refund is based. If only one of the spouses filing the return is identified as a person having a delinquent tax liability, the other spouse shall receive one-half of the refund unless this presumption is rebutted by the agency or the spouse.
Source
Laws 1985, LB 273, § 5.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-27,179 - Tax refund setoff; procedure; joint return; how treated.

77-27,179.
Tax refund setoff; procedure; joint return; how treated.
(1) If the Department of Revenue determines that a person identified as having a delinquent tax liability is entitled to a tax refund:
(a) The Department of Revenue shall transfer the full amount of the refund or the amount equal to any debts owed the state or any of its political subdivisions, whichever is less, as necessary to apply toward satisfaction of the liability;
(b) The Department of Revenue shall transfer the amount of any balance of the refund or the amount certified by the Commissioner of Internal Revenue as delinquent tax liability, whichever is less, to the Commissioner of Internal Revenue; and
(c) Any remaining balance of the refund shall be forwarded to the taxpayer in the usual manner.
(2) In the case of a joint return when only one spouse is a person identified as having a delinquent tax liability, if the Department of Revenue has reason to believe that the spouse having the liability did in fact contribute more or less than the one-half contribution as provided in section 77-27,178, the Department of Revenue shall transfer the amount of the refund deemed attributable to the spouse with the liability as provided in subsection (1) of this section.
Source
Laws 1985, LB 273, § 6.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-27,180 - Setoff; notice; contents.

77-27,180.
Setoff; notice; contents.
Within thirty days of a transfer pursuant to section 77-27,179, the Department of Revenue shall notify the person, and his or her spouse in the case of a joint return, of the transfer. If an agency, other than the Department of Revenue, or the Commissioner of Internal Revenue is involved with the transfer, a copy of the notice and of any correspondence shall be sent to each involved party. The notice shall state:
(1) The basis for the claim to the refund;
(2) The application of the refund or a portion thereof against the delinquent tax liability;
(3) That the person has the opportunity to contest the validity and amount of the delinquent tax liability by applying to the agency requesting the setoff in writing for a hearing and the time period after the date of the mailing of the notice within which the appeal must be filed;
(4) The name and mailing address of the agency to which the application for a hearing must be sent;
(5) The effect of a failure to apply in writing for a hearing within the prescribed period; and
(6) In the case of a joint return (a) the presumption provided in section 77-27,178, (b) that the presumption may be rebutted, (c) whether both or just one of the spouses has a delinquent tax liability, and (d) the percentage of the refund which the agency attributes to the spouse or spouses with the delinquent tax liability.
Source
Laws 1985, LB 273, § 7;
Laws 1987, LB 523, § 30.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-27,181 - Application for hearing; when effective.

77-27,181.
Application for hearing; when effective.
A written application for a hearing pursuant to section 77-27,180 shall be effective upon mailing the application, postage prepaid and properly addressed, to the appropriate agency.
Source
Laws 1985, LB 273, § 8.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-27,182 - Hearing and appeal; procedure.

77-27,182.
Hearing and appeal; procedure.
If the Department of Revenue receives a written application for a hearing, it shall proceed with notice and hearing as for a contested case pursuant to the Administrative Procedure Act. The validity and amount of the liability shall be determined and any adjustments made. No issues shall be reconsidered at the hearing which have previously been litigated. An appeal of the final decision may be made, and the appeal shall be in accordance with the Administrative Procedure Act.
Source
Laws 1985, LB 273, § 9;
Laws 1988, LB 352, § 161.
Cross References
Administrative Procedure Act, see section 84-920.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-27,183 - Improper setoff; how treated.

77-27,183.
Improper setoff; how treated.
In the case of an improper setoff, the agency receiving the benefit of the setoff by having a purportedly delinquent tax paid shall be liable to the taxpayer for payment of any setoff, penalty, and interest.
Source
Laws 1985, LB 273, § 10.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-27,187 - Act, how cited.

77-27,187.
Act, how cited.
Sections 77-27,187 to 77-27,195 shall be known and may be cited as the Nebraska Advantage Rural Development Act.
Source
Laws 1986, LB 1124, § 1;
Laws 1987, LB 270, § 1;
Laws 1997, LB 886, § 1;
Laws 1998, LB 1104, § 14;
Laws 2002, LB 93, § 19;
Laws 2003, LB 608, § 1;
Laws 2005, LB 312, § 16;
Laws 2009, LB403, § 8;
Laws 2014, LB836, § 1.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-27,187.03 - Legislative findings.

77-27,187.03.
Legislative findings.
The Legislature hereby finds and declares that it is the policy of this state to make revisions in Nebraska's tax structure to encourage businesses to locate in rural areas of Nebraska in order to decrease unemployment, create new jobs, and increase investment in rural areas of the state. It is also the policy of this state to encourage the modernization of livestock facilities.
Source
Laws 2014, LB836, § 2.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-27,188.01 - Tax credit; claim; use; payment by contractor; how treated; applicability of section.

77-27,188.01.
Tax credit; claim; use; payment by contractor; how treated; applicability of section.
(1) The credit allowed under section 77-27,188 may be used to obtain a refund of state sales and use taxes paid or against the income tax liability of the taxpayer or may be used as a refundable credit claimed on an income tax return of the taxpayer. The return need not reflect any income tax liability owed by the taxpayer.
(2) A claim for the credit may be filed quarterly for refund of the state sales and use taxes paid, either directly or indirectly, after the filing of the income tax return for the taxable year in which the credit was first allowed.
(3) The credit may be used to obtain a refund of state sales and use taxes paid before the end of the taxable year for which the credit was allowed, except that the amount refunded under this subsection shall not exceed the amount of the state sales and use taxes paid, either directly or indirectly, by the taxpayer on the qualifying investment.
(4) For purposes of subsections (2) and (3) of this section, the taxpayer shall be deemed to have paid indirectly any state sales or use taxes paid by a contractor on building materials annexed to an improvement to real estate built for the taxpayer. The contractor shall certify to the taxpayer the amount of the Nebraska state sales and use taxes paid on the building materials, or the taxpayer, with the permission of the Tax Commissioner and a certification from the contractor that Nebraska state sales and use taxes were paid on all building materials, may presume that fifty percent of the cost of the improvement was for building materials annexed to real estate on which the tax was paid.
(5) No claim for refund of sales and use taxes under this section may be filed prior to January 1, 1989.
(6) Credits distributed to a partner, limited liability company member, shareholder, or beneficiary under section 77-27,194 may be used against the income tax liability of the partner, member, shareholder, or beneficiary receiving the credits.
(7) For taxpayers who met the job and investment thresholds of the Employment Expansion and Investment Incentive Act for a tax year beginning before January 1, 2004, subsection (6) of this section and subdivision (1)(b) of section 77-27,188, as such section existed immediately prior to such date, shall continue to apply to such taxpayer. The changes made by Laws 2003, LB 608, shall not preclude a taxpayer from receiving the tax incentives earned prior to January 1, 2004.
Source
Laws 1987, LB 270, § 3;
Laws 1989, LB 335, § 2;
Laws 1993, LB 121, § 512;
Laws 1993, LB 345, § 73;
Laws 1993, LB 725, § 17;
Laws 1994, LB 884, § 91;
Laws 2003, LB 608, § 5;
Laws 2004, LB 1017, § 21.
Note:
The Employment Expansion and Investment Incentive Act was renamed the Nebraska Advantage Rural Development Act, see section 77-27,187.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-27,188.02 - Failure to maintain investment and employment level; effect.

77-27,188.02.
Failure to maintain investment and employment level; effect.
If the taxpayer does not maintain the increases in the level of investment and employment described in subsection (1) of section 77-27,188 to create a credit for at least three years after the year for which the credit was first allowed, the taxpayer shall lose all used and unused credits. The taxpayer shall repay to the state the amount of the used credits within one year after the failure to maintain such investment and employment.
Source
Laws 1987, LB 270, § 4;
Laws 1989, LB 335, § 3;
Laws 1997, LB 886, § 4;
Laws 2001, LB 169, § 3;
Laws 2003, LB 608, § 6;
Laws 2006, LB 990, § 5.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-27,188.03 - Employees; verification of status required; exclusion.

77-27,188.03.
Employees; verification of status required; exclusion.
(1) The Tax Commissioner shall not approve or grant to any person any tax incentive under the Nebraska Advantage Rural Development Act unless the taxpayer provides evidence satisfactory to the Tax Commissioner that the taxpayer electronically verified the work eligibility status of all newly hired employees employed in Nebraska.
(2) For purposes of calculating any tax incentive available under the act, the Tax Commissioner shall exclude hours worked and compensation paid to an employee that is not eligible to work in Nebraska as verified under subsection (1) of this section.
(3) This section does not apply to any application filed under the act prior to October 1, 2009.
Source
Laws 2009, LB403, § 9.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-27,189 - Qualified business, defined.

77-27,189.
Qualified business, defined.
(1) A qualified business means any business engaged in:
(a) Storage, warehousing, distribution, transportation, or sale of tangible personal property;
(b) Livestock production;
(c) Conducting research, development, or testing for scientific, agricultural, animal husbandry, food product, or industrial purposes;
(d) Performing data processing, telecommunication, insurance, or financial services. For purposes of this subdivision, financial services includes only financial services provided by any financial institution subject to tax under Chapter 77, article 38, or any person or entity licensed by the Department of Banking and Finance or the Securities and Exchange Commission and telecommunication services includes community antenna television service, Internet access, satellite ground station, data center, call center, or telemarketing;
(e) Assembly, fabrication, manufacture, or processing of tangible personal property;
(f) Administrative management of any activities, including headquarter facilities relating to such activities; or
(g) Any combination of the activities listed in this subsection.
(2) Qualified business does not include:
(a) Any business activity in which eighty percent or more of the total sales are sales to the ultimate consumer of food prepared for immediate consumption or are sales to the ultimate consumer of tangible personal property which is not (i) assembled, fabricated, manufactured, or processed by the taxpayer or (ii) used by the purchaser in any of the activities listed in subsection (1) of this section; and
(b) Any casino.
Source
Laws 1986, LB 1124, § 3;
Laws 1987, LB 270, § 5;
Laws 1993, LB 725, § 18;
Laws 2003, LB 608, § 7;
Laws 2006, LB 990, § 6;
Laws 2007, LB223, § 19.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-27,190 - Employment expansion; how determined.

77-27,190.
Employment expansion; how determined.
(1) A taxpayer shall be deemed to have new equivalent employees when the new equivalent employees hired during a taxable year are in addition to the number of total equivalent employees in the taxable year preceding the date of application.
(2) Qualifying business employees who work within and without this state shall be considered only to the extent they are paid for work performed within this state.
(3) The hours worked by any person considered an independent contractor or the employee of another taxpayer shall not be used in the computation under this section.
Source
Laws 1986, LB 1124, § 4;
Laws 1987, LB 270, § 6;
Laws 1997, LB 886, § 5;
Laws 2003, LB 608, § 8;
Laws 2007, LB223, § 20.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-27,191 - Investment increase; how determined.

77-27,191.
Investment increase; how determined.
(1) A taxpayer shall be deemed to have made an increased investment in this state to the extent the value of the property used or available for use exceeds the value of all property used or available for use on the last day of the taxable year previous to the date the application was filed.
(2) To determine the value of property owned by the taxpayer, the tax basis before allowance for depreciation shall be used. To determine the value of property rented by the taxpayer, the average net annual rent shall be multiplied by the number of years of the lease for which the taxpayer was originally bound, not to exceed ten years. The rental of land included in and incidental to the leasing of a building shall not be excluded from the computation.
(3) Only investment in improvements to real property and tangible personal property that are depreciable under the Internal Revenue Code shall be considered.
(4) Vehicles, planes, or railroad rolling stock shall be excluded in determining the investment under this section.
Source
Laws 1986, LB 1124, § 5;
Laws 1987, LB 270, § 7;
Laws 1989, LB 335, § 4;
Laws 2003, LB 608, § 9;
Laws 2006, LB 1003, § 9.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-27,192 - Existing business acquisition, disposal, reorganization, or relocation; computation; certain transactions excluded.

77-27,192.
Existing business acquisition, disposal, reorganization, or relocation; computation; certain transactions excluded.
(1)(a) If the taxpayer acquires an existing business, the increases determined in sections 77-27,190 and 77-27,191 shall be computed as though the taxpayer had owned the business for the entire taxable year preceding the date of application.
(b) If the taxpayer disposes of an existing business, and the new owner maintains the minimum increases in the levels of investment and employment required in section 77-27,188 to create a credit, the taxpayer shall not be required to make any repayment under section 77-27,188.02 solely because of the disposition of the business.
(2) If the structure of a business is reorganized, the taxpayer shall compute the increases on a consistent basis for all periods.
(3) If the taxpayer moves a business from one location to another and the business was operated in this state during the taxable year preceding the date of application, the increases determined in sections 77-27,190 and 77-27,191 shall be computed as though the taxpayer had operated the business at the new location for the entire taxable year preceding the date of application.
(4) If the taxpayer enters into any of the following transactions, they shall be presumed to be a transaction entered into for the purpose of generating benefits under the Nebraska Advantage Rural Development Act and shall not be allowed in the computation of any benefit or the meeting of any required levels under the agreement except as specifically provided in this subsection:
(a) The purchase or lease of any property which was previously owned by the taxpayer which filed the application or a related taxpayer unless the first purchase by either the taxpayer which filed the application or a related taxpayer was first placed in service in the state after the beginning of the taxable year the application was filed;
(b) The renegotiation of any lease in existence during the taxable year the application was filed which does not materially change any of the terms of the lease other than the expiration date;
(c) The purchase or lease of any property from a related taxpayer, except that the taxpayer which filed the application will be allowed any benefits under the act to which the related taxpayer would have been entitled on the purchase or lease of the property if the related taxpayer was considered the taxpayer;
(d) Any transaction entered into primarily for the purpose of receiving benefits under the act which is without a business purpose and does not result in increased economic activity in the state; and
(e) Any activity that results in benefits under the Ethanol Development Act.
Source
Laws 1986, LB 1124, § 6;
Laws 1997, LB 886, § 6;
Laws 2001, LB 169, § 4;
Laws 2007, LB223, § 21.
Cross References
Ethanol Development Act, see section 66-1330.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-27,194 - Credit; when transferable.

77-27,194.
Credit; when transferable.
The credit allowed under the Nebraska Advantage Rural Development Act shall not be transferable except in the following situations:
(1) Any credit allowable to a partnership, a limited liability company, a subchapter S corporation, a cooperative, including a cooperative exempt under section 521 of the Internal Revenue Code of 1986, as amended, a limited cooperative association, or an estate or trust may be distributed to the partners, limited liability company members, shareholders, patrons, limited cooperative association members, or beneficiaries. Any credit distributed shall be distributed in the same manner as income is distributed. A credit distributed shall be considered a credit used and the partnership, limited liability company, subchapter S corporation, cooperative, including a cooperative exempt under section 521 of the Internal Revenue Code of 1986, as amended, limited cooperative association, estate, or trust shall be liable for any repayment under section 77-27,188.02;
(2) The incentives previously allowed and the future allowance of incentives may be transferred when a project covered by an agreement is transferred by sale or lease to another taxpayer or in an acquisition of assets qualifying under section 381 of the Internal Revenue Code of 1986;
(3) The acquiring taxpayer, as of the date of notification of the Tax Commissioner of the completed transfer, shall be entitled to any unused credits and to any future incentives allowable under the act;
(4) The acquiring taxpayer shall be liable for any repayment that becomes due after the date of the transfer for the repayment of any benefits received either before or after the transfer; and
(5) If a taxpayer operating a qualifying business and allowed a credit under section 77-27,188 dies and there is credit remaining after the filing of the final return for the taxpayer, the personal representative shall determine the distribution of the credit or any remaining carryover with the initial fiduciary return filed for the estate. The determination of the distribution of credit may be changed only after obtaining the permission of the Tax Commissioner.
Source
Laws 1986, LB 1124, § 8;
Laws 1993, LB 121, § 513;
Laws 1994, LB 884, § 92;
Laws 1997, LB 886, § 8;
Laws 2003, LB 608, § 10;
Laws 2005, LB 312, § 20;
Laws 2006, LB 1003, § 10;
Laws 2007, LB368, § 137.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-27,194.01 - Refund claims; interest not allowable.

77-27,194.01.
Refund claims; interest not allowable.
For all refund claims filed on or after October 1, 1998, interest shall not be allowable on any refunds paid because of benefits earned under the Nebraska Advantage Rural Development Act.
Source
Laws 1998, LB 1104, § 16;
Laws 2005, LB 312, § 21.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-27,195 - Report; contents; joint hearing.

77-27,195.
Report; contents; joint hearing.
(1) The Tax Commissioner shall prepare a report identifying the amount of investment in this state and the number of equivalent jobs created by each taxpayer claiming a credit pursuant to the Nebraska Advantage Rural Development Act. The report shall include the amount of credits claimed in the aggregate. The report shall be issued on or before October 31 of each year for all credits allowed during the previous fiscal year. The report shall be on a fiscal year, accrual basis that satisfies the requirements set by the Governmental Accounting Standards Board. The Department of Revenue shall, on or before December 15 of each even-numbered year, appear at a joint hearing of the Appropriations Committee of the Legislature and the Revenue Committee of the Legislature and present the report. Any supplemental information requested by three or more committee members shall be presented within thirty days after the request.
(2) Beginning with applications filed on or after January 1, 2006, except for livestock modernization or expansion projects, the report shall provide information on project-specific total incentives used every two years for each approved project and shall disclose (a) the identity of the taxpayer, (b) the location of the project, and (c) the total credits used and refunds approved during the immediately preceding two years expressed as a single, aggregated total. The incentive information required to be reported under this subsection shall not be reported for the first year the taxpayer attains the required employment and investment thresholds. The information on first-year incentives used shall be combined with and reported as part of the second year. Thereafter, the information on incentives used for succeeding years shall be reported for each project every two years containing information on two years of credits used and refunds approved. The incentives used shall include incentives which have been approved by the Department of Revenue, but not necessarily received, during the previous two fiscal years.
(3) For livestock modernization or expansion projects, the report shall disclose (a) the identity of the taxpayer, (b) the total credits used and refunds approved during the preceding fiscal year, and (c) the location of the project.
(4) No information shall be provided in the report that is protected by state or federal confidentiality laws.
Source
Laws 1986, LB 1124, § 9;
Laws 1993, LB 725, § 19;
Laws 1997, LB 886, § 9;
Laws 2003, LB 608, § 11;
Laws 2005, LB 312, § 22;
Laws 2006, LB 990, § 7;
Laws 2013, LB612, § 3;
Laws 2022, LB1150, § 4.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-27,196.01 - Changes to sections; when operative; credits; applicability of act.

77-27,196.01.
Changes to sections; when operative; credits; applicability of act.
(1) The changes made in sections 77-27,188, 77-27,188.02, 77-27,190, 77-27,192, 77-27,193, and 77-27,194 by Laws 1997, LB 886, shall become operative for all credits earned in tax years beginning, or deemed to begin, on and after January 1, 1998. For all credits earned in tax years beginning, or deemed to begin, prior to January 1, 1998, the provisions of the Employment Expansion and Investment Incentive Act as they existed immediately prior to such date shall apply.
(2) The changes made in sections 77-27,187.01 and 77-27,188 by Laws 1999, LB 539, shall become operative for all credits earned in tax years beginning, or deemed to begin, on and after January 1, 1999. For all credits earned in tax years beginning, or deemed to begin, prior to January 1, 1999, the provisions of the Employment Expansion and Investment Incentive Act as they existed immediately prior to such date shall apply.
(3) The changes made in sections 77-27,188, 77-27,188.02, and 77-27,192 by Laws 2001, LB 169, shall become operative for all credits earned in tax years beginning, or deemed to begin, on and after January 1, 2001. For all credits earned in tax years beginning, or deemed to begin, prior to January 1, 2001, the provisions of the Employment Expansion and Investment Incentive Act as they existed immediately prior to such date shall apply.
(4) The changes made in sections 77-27,187.01 and 77-27,187.02 by Laws 2008, LB 895, become operative for applications filed on and after April 18, 2008. The changes made in section 77-27,188 by Laws 2008, LB 895, become operative for applications filed on and after July 1, 2009.
Source
Laws 1997, LB 886, § 10;
Laws 1999, LB 539, § 3;
Laws 2001, LB 169, § 5;
Laws 2008, LB895, § 5.
Note:
The Employment Expansion and Investment Incentive Act was renamed the Nebraska Advantage Rural Development Act, see section 77-27,187.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-27,197 - Legislative intent.

77-27,197.
Legislative intent.
It is the intent of the Legislature to establish and maintain a procedure to set off against a debtor's income tax refund any debt owed to the Department of Labor which has accrued as a result of an individual's liability for the repayment of unemployment insurance benefits determined to be in overpayment pursuant to sections 48-665 and 48-665.01 or an employer's liability for combined tax determined to be due and owing pursuant to sections 48-655 and 48-656.
Source
Laws 1993, LB 46, § 1;
Laws 1997, LB 129, § 3.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-27,198 - Collection system; departments implement.

77-27,198.
Collection system; departments implement.
The Department of Revenue, the Department of Administrative Services, and the Department of Labor shall develop and implement a collection system to carry out the intent of section 77-27,197.
Source
Laws 1993, LB 46, § 2.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-27,199 - Terms, defined.

77-27,199.
Terms, defined.
For purposes of sections 77-27,197 to 77-27,209:
(1) Debt means combined tax due and payable to the Department of Labor pursuant to sections 48-655 and 48-656 or erroneous benefit payments due and payable to the department pursuant to sections 48-665 and 48-665.01; and
(2) Refund means any Nebraska state income tax refund which the Department of Revenue determines to be due an individual, corporate, or business taxpayer. In the case of a joint income tax return, it shall be presumed that each partner to the marriage submitting such return contributed one-half of the earnings upon which the refund is based. The presumption may be contested by the state, the debtor, and the innocent spouse by virtue of the hearing process prescribed in section 77-27,203.
Source
Laws 1993, LB 46, § 3;
Laws 1997, LB 129, § 4.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-27,200 - Collection remedy; cumulative.

77-27,200.
Collection remedy; cumulative.
The collection remedy authorized by sections 77-27,197 to 77-27,209 shall be in addition to and not in substitution for any other remedy available by law.
Source
Laws 1993, LB 46, § 4.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-27,201 - Debt; submission for collection; when.

77-27,201.
Debt; submission for collection; when.
The Department of Labor may submit any debt of twenty-five dollars or more to the Department of Revenue for collection pursuant to sections 77-27,197 to 77-27,209 except when the validity of the debt has not been finally determined by the debtor's exercise or failure to exercise all applicable appeal rights.
Source
Laws 1993, LB 46, § 5.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-27,202 - Department of Labor; Department of Revenue; notifications required.

77-27,202.
Department of Labor; Department of Revenue; notifications required.
(1) If a debtor identified by the Department of Labor pursuant to section 77-27,201 is determined by the Department of Revenue to be entitled to a refund of twenty-five dollars or more, the Department of Revenue shall notify the Department of Labor that a refund is pending.
(2) Upon receipt of the notification, the Department of Labor shall, within twenty days, send written notification to the debtor of an assertion of its rights to all or a portion of the debtor's refund.
(3) The notification to the debtor shall clearly set forth the basis for the claim to the refund, the intention to apply the refund against the debt, the debtor's opportunity to give written notice of intent to contest the validity of the claim before the Department of Labor within twenty days of the date of the mailing of the notice, the mailing address to which the application for a hearing must be sent, and notice that failure to apply for a hearing in writing within the twenty-day period will be deemed a waiver of the opportunity to contest the claim, causing a setoff by default. In the case of a joint income tax return, the notice shall also state the name of the taxpayer named in the return against whom no debt is claimed. There shall be no affirmative duty placed upon the non-owing spouse to initiate an action to receive payment of the noninterceptable amount.
Source
Laws 1993, LB 46, § 6.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-27,203 - Application for hearing; adjustment to debt.

77-27,203.
Application for hearing; adjustment to debt.
A written application pursuant to section 77-27,202 by a debtor for a hearing shall be effective upon receipt of the application by the Department of Labor. If the department receives a timely written application contesting its claim to a refund, it shall grant a hearing to the taxpayer to determine whether the claim is valid. If the amount asserted as due and owing is not correct, an adjustment to the claimed amount shall be made. No hearing shall be granted upon issues which have been finally determined.
Source
Laws 1993, LB 46, § 7.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-27,204 - Appeal; procedure.

77-27,204.
Appeal; procedure.
Any appeal of an action taken or as a result of a hearing held pursuant to section 77-27,203 shall be in accordance with the Administrative Procedure Act.
Source
Laws 1993, LB 46, § 8.
Cross References
Administrative Procedure Act, see section 84-920.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-27,205 - Final determination; certification of debt; Department of Administrative Services; duties.

77-27,205.
Final determination; certification of debt; Department of Administrative Services; duties.
Upon the final determination of the amount and validity of the debt due and owing, by means of the hearing provided for in section 77-27,203 or by the taxpayer's default through failure to request a hearing, the Department of Labor shall certify the debt to the Department of Administrative Services within twenty days from the date of the final determination. Upon receipt of the certified debt amount from the Department of Labor, the Department of Administrative Services shall deduct an amount equal to the certified debt from the refund due the debtor, up to the amount of the refund, and shall transfer such amount to the Department of Labor. The Department of Administrative Services shall refund any remaining balance to the debtor as if the setoff had not occurred.
Source
Laws 1993, LB 46, § 9.