reglab/statecodes huggingface dataset:
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-5215 - Changes; when operative.

77-5215.
Changes; when operative.
(1) The changes made in sections 77-5201, 77-5203, 77-5208, 77-5209, and 77-5211 to 77-5213 by Laws 2006, LB 990, shall become operative for all credits earned in tax years beginning or deemed to begin on and after January 1, 2007, under the Internal Revenue Code of 1986, as amended. For all credits earned in tax years beginning or deemed to begin prior to January 1, 2007, under the code, the provisions of the Beginning Farmer Tax Credit Act as they existed prior to such date shall apply.
(2) The changes made in sections 77-5203, 77-5209, and 77-5211 by Laws 2008, LB 1027, shall become operative for all credits earned in tax years beginning or deemed to begin on and after January 1, 2008, under the Internal Revenue Code of 1986, as amended. For all credits earned in tax years beginning or deemed to begin prior to January 1, 2008, under the code, the provisions of the Beginning Farmer Tax Credit Act as they existed prior to such date shall apply.
Source
Laws 2006, LB 990, § 16;
Laws 2008, LB1027, § 9.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-5402 - Legislative findings and declaration.

77-5402.
Legislative findings and declaration.
The Legislature finds and declares that:
(1) Population and economic growth in Nebraska has for many years been greater in counties with relatively large populations and economies than in most of Nebraska's less populated counties; and
(2) It is the policy of the state to make revisions in Nebraska's tax structure to encourage employment and business investment that will significantly and positively impact the economies of the state's small-sized and mid-sized counties.
Source
Laws 2000, LB 936, § 2.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-5404 - Employee of qualified employee leasing company; how treated.

77-5404.
Employee of qualified employee leasing company; how treated.
An employee of a qualified employee leasing company shall be considered to be an employee of the client-lessee for purposes of the Rural Economic Opportunities Act if the employee performs services for the client-lessee. A qualified employee leasing company shall provide the Department of Revenue access to the records of employees leased to the client-lessee.
Source
Laws 2000, LB 936, § 4.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-5406 - Transactions and activities not eligible for incentives.

77-5406.
Transactions and activities not eligible for incentives.
The following transactions or activities shall not create any credits or allow any benefits under the Rural Economic Opportunities Act:
(1) The acquisition of a business which is continued by the taxpayer and which was operated in this state during three hundred sixty-six days prior to the date of application or date of acquisition, whichever is later. All employees of the acquired business during such period shall be considered base-year employees, and the compensation paid during the base year or the year before acquisition, whichever is later, shall be the base-year compensation. Any investment in the acquisition of such business shall be considered as being made before the date of application;
(2) The moving of a business from one location to another when the business was operated in this state during the three hundred sixty-six days prior to the date of application. All employees of the business during such period shall be considered base-year employees;
(3) The purchase or lease of any property which was previously owned by the taxpayer or a related person. The first purchase by either the taxpayer or a related person shall be treated as investment if the property was first placed in service in this state after the date of application;
(4) The renegotiation of any lease in existence on the date of application which does not materially change any of the terms of the lease, other than the expiration date, shall be presumed to be a transaction entered into for the purpose of generating benefits under the act and shall not be allowed in the computation of any benefit or the meeting of any required employment, wages, and investment levels under the agreement;
(5) Any purchase or lease of property from a related person, except that the taxpayer will be allowed any benefits under the act to which the related person would have been entitled on the purchase or lease of the property if the related person was considered the taxpayer; and
(6) Any transaction entered into primarily for the purpose of receiving benefits under the act which is without a business purpose other than the reduction of taxes and does not result in increased economic activity in the state.
Source
Laws 2000, LB 936, § 6.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-5407 - Credits authorized.

77-5407.
Credits authorized.
Any taxpayer who qualifies for the incentives by adding the number of employees, wages, and investment required in section 77-5405 shall be entitled to:
(1) A credit equal to five percent of the amount by which the total compensation paid during the year exceeds the average compensation paid at the project multiplied by the number of equivalent base-year employees. For the computation of such credit, average compensation means the total compensation paid at the project divided by the total number of equivalent employees at the project; and
(2) A credit equal to ten percent of the investment made in qualified property at the project.
The credits prescribed in subdivisions (1) and (2) of this section shall be allowable for compensation paid and investments made during each year of the entitlement period that the taxpayer is at or above the required levels of employment, wages, and investment. The credits prescribed in subdivision (2) of this section shall also be allowable during the first year of the entitlement period for investment in qualified property at the project after the date of the application and before the required levels of employment, wages, and investment are met.
Source
Laws 2000, LB 936, § 7.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-5408 - Credits; how used.

77-5408.
Credits; how used.
(1) The credits prescribed in section 77-5407 shall be established by filing the forms required by the Tax Commissioner with the income tax return for the year. The credits may be used after any other nonrefundable credits to reduce the taxpayer's income tax liability imposed by the Nebraska Revenue Act of 1967.
(2) The credits may be used as allowed in subsection (1) of this section and shall be applied in the order in which they were first allowed. Any decision on how part of the credit is applied shall not limit how the remaining credit could be applied under this section.
(3) The credits may be carried over until fully used, except that credits may not be carried over more than three years after the end of the entitlement period.
Source
Laws 2000, LB 936, § 8.
Cross References
Nebraska Revenue Act of 1967, see section 77-2701.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-5409 - Recapture or disallowance of credits; procedure.

77-5409.
Recapture or disallowance of credits; procedure.
(1) If the taxpayer fails either to meet the required levels of employment, wages, or investment for the applicable project by the end of the second year after the end of the year the application was submitted for such project or to use such project in a qualified business at employment, wages, and investment levels at or above those required in the agreement for the entire entitlement period, all or a portion of the incentives set forth in the Rural Economic Opportunities Act shall be recaptured or disallowed.
(2) The recapture or disallowance shall be as follows:
(a) In the case of a taxpayer who failed to meet the required levels within the required time period, any reduction in the corporate income tax arising from the use of credits prescribed in section 77-5407 shall be deemed an underpayment of the income tax and shall be immediately due and payable; and
(b) In the case of a taxpayer who failed to maintain the project at the required levels of employment, wages, and investment for the entire entitlement period, any reduction in tax allowed because of the use of a credit allowed under section 77-5407 shall be partially recaptured from the taxpayer and any carryovers of credits shall be partially disallowed. One-seventh of the credits used shall be recaptured and one-seventh of the remaining carryovers shall be disallowed for each year the taxpayer did not maintain such project at or above the required levels of employment, wages, or investment.
(3) Any reduction in tax due, to the extent required to be recaptured, shall be deemed to be an underpayment of the tax and shall be immediately due and payable. When tax benefits were received in more than one year, the tax benefits received in the most recent year shall be recovered first and then the benefits received in earlier years up to the extent of the required recapture.
(4) Notwithstanding any other limitations contained in the laws of this state, collections of any taxes deemed to be underpayments by this section shall be allowed for a period of ten years after the signing of the agreement or three years after the end of the entitlement period, whichever is later.
(5) Any amounts due under this section shall be recaptured notwithstanding other allowable credits and shall not be subsequently refunded under any provision of the act unless the recapture was in error.
(6) The recapture required by this section shall not occur if the failure to maintain the required levels of employment, wages, or investment was caused by an act of God or national emergency.
Source
Laws 2000, LB 936, § 9.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-5410 - Incentives; transferable; when; effect.

77-5410.
Incentives; transferable; when; effect.
(1) The incentives allowed under the Rural Economic Opportunities Act shall not be transferable except in the following situations:
(a) Any credit allowable to a partnership, a limited liability company, a subchapter S corporation, a subchapter T cooperative, or an estate or trust may be distributed to the partners, members, shareholders, or beneficiaries in the same manner as income is distributed for use against their income tax liabilities, and such partners, members, shareholders, or beneficiaries shall be deemed to have made an underpayment of their income taxes for any recapture required by section 77-5409; and
(b) The incentives previously allowed and the future allowance of incentives may be transferred when a project covered by an agreement is transferred in its entirety by sale or lease to another taxpayer or in an acquisition of assets qualifying under section 381 of the Internal Revenue Code.
(2) 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.
(3) The acquiring taxpayer shall be liable for any recapture that becomes due after the date of the transfer by the repayment of any benefits received either before or after the transfer.
(4) If a taxpayer operating a project and allowed a credit under the act dies and there is a 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 the credit may be changed only after obtaining the permission of the Tax Commissioner.
Source
Laws 2000, LB 936, § 10.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-5412 - Report; contents.

77-5412.
Report; contents.
(1) The Tax Commissioner shall submit electronically an annual report to the Legislature no later than June 30 of each year.
(2) The report shall state by industry group (a) the credits earned, (b) the credits used to reduce the corporate income tax and the credits used to reduce the individual income tax, (c) the number of jobs created, (d) the total number of employees employed by taxpayers at qualifying projects on the last day of the calendar quarter prior to the application date and the total number of employees employed by the taxpayers for the projects on subsequent reporting dates, (e) the expansion of capital investment, (f) the estimated wage levels of jobs created subsequent to the application date, (g) the total number of qualified applicants, (h) the projected future state revenue gains and losses, and (i) the credits outstanding.
(3) No information shall be provided in the report that is protected by state or federal confidentiality laws.
Source
Laws 2000, LB 936, § 12;
Laws 2012, LB782, § 143.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-5413 - Application; filing deadline.

77-5413.
Application; filing deadline.
There shall be no project applications filed on or after July 1, 2004, except that all project applications and all project agreements pending, approved, or entered into before such date shall continue in full force and effect.
Source
Laws 2000, LB 936, § 13.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-5502 - Policy.

77-5502.
Policy.
It is the policy of this state to enact appropriate legislation to encourage new businesses to relocate to and existing businesses to expand in Nebraska and to provide appropriate inducements to encourage new and existing businesses to do so. The goals of the policy, to be achieved in a manner that is both fiscally sound and effective, are (1) to aid in the economic and population growth of the state and (2) to assist in the creation of better jobs for the residents of the state.
Source
Laws 2001, LB 620, § 2.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-5504 - Additional definitions.

77-5504.
Additional definitions.
Any term defined in the Nebraska Revenue Act of 1967 and used in the Invest Nebraska Act has the same meaning in the Invest Nebraska Act unless the context requires a different meaning.
Source
Laws 2001, LB 620, § 4.
Cross References
Nebraska Revenue Act of 1967, see section 77-2701.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-5507 - Base-year employee, defined.

77-5507.
Base-year employee, defined.
Base-year employee means any individual who was employed in Nebraska and subject to the Nebraska income tax on compensation received from the company or its predecessors during the base year and who is employed at the project.
Source
Laws 2001, LB 620, § 7.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-5509 - Company, defined.

77-5509.
Company, defined.
Company means (1) any person subject to sales and use taxes and either the income tax imposed by the Nebraska Revenue Act of 1967 or the franchise tax under sections 77-3801 to 77-3807, (2) any corporation, partnership, limited liability company, or joint venture that is or would otherwise be a member of the same unitary group, if incorporated, which is, or whose partners, members, or owners are, subject to such taxes, and any other partnership, limited liability company, subchapter S corporation, or joint venture when the partners, owners, shareholders, or members are subject to such taxes, (3) any cooperative exempt from such taxes under section 521 of the Internal Revenue Code of 1986, as amended, and (4) any limited cooperative association.
Source
Laws 2001, LB 620, § 9;
Laws 2007, LB368, § 138.
Cross References
Nebraska Revenue Act of 1967, see section 77-2701.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-5510 - Company training program, defined.

77-5510.
Company training program, defined.
Company training program means any program developed or operated by or for the benefit of the company which screens, trains, or educates recruits, potential employees, or actual employees of the company, or any combination thereof, in order to enable the recruits or employees to perform employment activities at the project and includes recruitment, screening, customized training, job-specific training, on-the-job training, and generalized training programs.
Source
Laws 2001, LB 620, § 10.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-5513 - Educational institution training program, defined.

77-5513.
Educational institution training program, defined.
Educational institution training program means any training program established by or conducted by any public or private educational institution that provides training or education for recruits, potential employees, or actual employees of the company, or any combination thereof, with regard to employment or potential employment at the project.
Source
Laws 2001, LB 620, § 13.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-5514 - Employee, defined.

77-5514.
Employee, defined.
Employee means a person employed at the project. An employee of a qualified employee leasing company shall be deemed to be an employee of the client-lessee if the employee performs services for the client-lessee. A qualified employee leasing company shall provide the Department of Revenue access to the records of employees leased to the client-lessee.
Source
Laws 2001, LB 620, § 14.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-5515 - Employee benefit program, defined.

77-5515.
Employee benefit program, defined.
Employee benefit program means health and dental benefits, dependent care, life insurance, disability insurance, or relocation costs provided to or for the benefit of employees, which programs are qualified under the Internal Revenue Code of 1986, as amended.
Source
Laws 2001, LB 620, § 15.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-5516 - Entitlement period, defined.

77-5516.
Entitlement period, defined.
(1) Entitlement period is ten years, meaning the year during which the required increases in employment and investment were met or exceeded or that meets the conditions in subsection (2) of this section and the next one hundred eight months.
(2) Solely for the purpose of determining the first year of the entitlement period, if before the end of a year a company has reached the required level of new investment and has created the number of new jobs at the project equal to at least the applicable required level of new employment, but has not yet reached the required number of new employees because such employees have not been employed at the project yet for a full year, then the company may elect on its tax return for such year to be considered to have met the required levels of employment and investment during such year.
Source
Laws 2001, LB 620, § 16.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-5519 - Genetic test, defined.

77-5519.
Genetic test, defined.
Genetic test means the analysis of human DNA, RNA, and chromosomes and those proteins and metabolites used to detect heritable or somatic disease-related genotypes or karyotypes for clinical purposes. A genetic test must be generally accepted in the scientific and medical communities as being specifically determinative for the presence, absence, or mutation of a gene or chromosome in order to qualify under this definition. Genetic test does not include a routine physical examination or a routine analysis, including a chemical analysis, of body fluids unless conducted specifically to determine the presence, absence, or mutation of a gene or chromosome.
Source
Laws 2001, LB 620, § 19.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-5520 - Investment, defined.

77-5520.
Investment, defined.
Investment means the value of qualified property incorporated into or used at the project after the date of the application. For qualified property owned by the company, the value is the original cost of the property. For qualified property rented by the company, the value is the average net annual rent multiplied by the number of years of the lease for which the company was originally bound, not to exceed ten years or the end of the third year after the entitlement period, whichever is earlier. The rental of land included in and incidental to the leasing of a building may be included by the company in the computation.
Source
Laws 2001, LB 620, § 20.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-5521 - Nebraska average annual wage, defined.

77-5521.
Nebraska average annual wage, defined.
Nebraska average annual wage means the most recent average annual wage paid by all employers in this state for the most recent calendar year as reported by the Department of Labor on or before the July 1 immediately prior to the beginning of the particular year the company applied for benefits for which such determination applies.
Source
Laws 2001, LB 620, § 21.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-5525 - Qualified business, defined.

77-5525.
Qualified business, defined.
Qualified business means any business engaged in the activities listed in subdivisions (1) through (5) of this section or in the storage, warehousing, distribution, transportation, or sale of tangible personal property. Qualified business does not include 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 assembled, fabricated, manufactured, or processed by the company or used by the purchaser in any of the following activities:
(1) The conducting of research, development, or testing for scientific, agricultural, animal husbandry, food product, or industrial purposes;
(2) The performance of data processing, telecommunication, insurance, or financial services. Financial services, for purposes of this subdivision, shall only include financial services provided by a financial institution subject to tax under sections 77-3801 to 77-3807 or any person or entity licensed by the Department of Banking and Finance or the Securities and Exchange Commission;
(3) The assembly, fabrication, manufacture, or processing of tangible personal property;
(4) The administrative management of any activities, including headquarter facilities, relating to such activity; or
(5) Any combination of the activities listed in this section.
Source
Laws 2001, LB 620, § 25.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-5526 - Qualified employee leasing company, defined.

77-5526.
Qualified employee leasing company, defined.
Qualified employee leasing company means a company which places all employees of a client-lessee on its payroll and leases such employees to the client-lessee on an ongoing basis for a fee and, by written agreement between the employee leasing company and a client-lessee, grants to the client-lessee input into the hiring and firing of the employees.
Source
Laws 2001, LB 620, § 26.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-5527 - Qualified property, defined.

77-5527.
Qualified property, defined.
Qualified property means any tangible property of the type subject to depreciation, amortization, or other recovery under the Internal Revenue Code of 1986, as amended, or the components of such property that will be located and used at the project. Qualified property does not include aircraft, barges, motor vehicles, railroad rolling stock, or watercraft or property that is rented by the qualified company to another person.
Source
Laws 2001, LB 620, § 27.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-5528 - Related persons, defined.

77-5528.
Related persons, defined.
Related persons means any corporations, partnerships, limited liability companies, or joint ventures which are or would otherwise be members of the same unitary group, if incorporated, or any persons who are considered to be related persons under section 267(b) and (c) of the Internal Revenue Code of 1986, as amended, or section 707(b) of the code.
Source
Laws 2001, LB 620, § 28.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-5529 - Start date, defined.

77-5529.
Start date, defined.
Start date means the first date after the date of the application on which a qualified investment, that is either all or a part of a building in the project, is placed in service by the owner. For purposes of this definition, placed in service has the same meaning as that used for the Internal Revenue Code of 1986, as amended.
Source
Laws 2001, LB 620, § 29.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-5533 - Alternate investment tax credit; use.

77-5533.
Alternate investment tax credit; use.
(1) A company which has signed an agreement under section 77-5536 may receive, in lieu of any wage benefit credit otherwise allowed by the Invest Nebraska Act, the incentive provided in this section if the agreement is for a project which will result in the investment in qualified property of at least two hundred million dollars and the hiring of at least five hundred new employees. Such two hundred million dollar investment and hiring of at least five hundred new employees shall be considered the required levels of investment and employment for this section and for the recapture of the incentives of this section only.
(2) When the company has met the required levels of employment and investment contained in this section, the company shall be entitled to either the wage benefit credit provided in section 77-5531 or an investment tax credit equal to fifteen percent of the investment made in qualified property at the project. The company shall be required to state which option it will seek benefits under in the application for benefits under the act.
(3) The investment tax credit prescribed in this section shall be allowable for investments made during each year of the entitlement period that the company is at or above the required levels of employment and investment. The credit shall also be allowable during the first year of the entitlement period for investment in qualified property at the project after the date of the application and before the required levels of employment and investment were met.
(4) The investment tax credit prescribed in this section shall be established by filing the forms required by the Tax Commissioner with the income tax return for the year. The credits may be used to reduce the company's Nebraska income tax liability. The credits shall be applied in the order in which they were first allowed. Any decision on how part of the credit is applied shall not limit how the remaining credit could be applied under this section. The credit may be carried over until fully utilized, except that the credit may not be carried over more than eight years after the end of the entitlement period. If a credit is subsequently recaptured under section 77-5538, the credit shall be treated as if it had never been allowed.
(5) The investment tax credit shall not be transferable, except that any credit to be taken against the income tax liability of the company and allowable to a partnership, a limited liability company, a subchapter S corporation, a cooperative, a joint venture, or an estate or trust may be distributed to the partners, members, shareholders, patrons, owners, or beneficiaries in the same manner as income is distributed for use against their income tax liabilities.
Source
Laws 2001, LB 620, § 33.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-5535 - Board; quorum; meetings; procedures.

77-5535.
Board; quorum; meetings; procedures.
(1) Any two members of the board shall constitute a quorum for the transaction of the business of the board. The Governor shall be the chairperson of the board. The address of the board is the Department of Revenue.
(2)(a) The Tax Commissioner is designated as the secretary of the board with the following responsibilities: The scheduling of a meeting when an application is to be considered; the publishing of the notices of the meeting according to the Invest Nebraska Act; the keeping of the minutes of the meetings and other records of the board; the notification of the applicant of the decision of the board; the receiving and entering into the record any written testimony concerning an application; and the consenting on behalf of the board to an extension of time within which the board is to make a decision.
(b) The Tax Commissioner shall give at least ten days' notice of meetings by publication in at least six newspapers across the state. The Tax Commissioner shall also give notice of meetings by publication in a newspaper that is local to the project area. A copy of the notice shall be posted in the State Capitol and a state office building in Lincoln. A copy of the notice shall be sent to the company. A news release shall be distributed by the Tax Commissioner.
(c) The Tax Commissioner shall notify the company in writing as to whether the board has approved or not approved the application. The board shall decide and such notice shall be mailed within sixty days after receipt of the application, unless such time is extended by mutual written consent of the Tax Commissioner and the company.
(3) The meeting of the board shall be recorded by a court reporter. The closed portion of the meeting shall be also recorded, and the record of that portion shall be sealed. The only persons who may attend the closed session of the board are the members of the board, the representatives of the company, other persons invited at the request of the company, the Tax Commissioner, other employees of the Department of Revenue, and the court reporter. Other persons, as necessary, may be invited by the board for the purpose of providing specific, confidential information. However, they may only attend the portion of the meeting necessary to provide the information requested by the board.
Source
Laws 2001, LB 620, § 35.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-5537 - Employment practices prohibited.

77-5537.
Employment practices prohibited.
A company entering into an agreement under the Invest Nebraska Act is prohibited from requiring as a condition of employment or promotion at the project that an employee or an individual applying for employment at the project submit to a genetic test or provide genetic information outside the scope of normal blood testing.
Source
Laws 2001, LB 620, § 37.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-5538 - Tax credit; recapture or disallowance; interest and penalties.

77-5538.
Tax credit; recapture or disallowance; interest and penalties.
(1) If the company fails to utilize a project in a qualified business at or above the required levels of employment and investment required in the Invest Nebraska Act for the entire entitlement period, a portion of the wage benefit credit or investment tax credit shall be recaptured directly by the state from the company or shall be disallowed. In no event shall any wage benefit credit be required to be paid back directly or indirectly by the employees, but instead shall be paid by the company.
(2) In the case of a company which has failed to maintain the project at the required levels of employment and investment for the entire entitlement period the recapture or disallowance shall be as follows: (a) No wage benefit credits or investment tax credits shall be allowed to the company for the actual year or years in which the required levels of employment or investment were not maintained; (b) for wage benefit credits or investment tax credits used, one-tenth of the credits shall be recaptured from the company for each year the required levels of employment or investment were not maintained; and (c) as to wage benefits credits or investment tax credits remaining at the end of the entitlement period, one-tenth of the credits shall be disallowed to the company for each year the required levels of employment or investment were not maintained in previous years.
(3)(a) Any amounts required to be recaptured shall be deemed to be an underpayment of tax, shall be immediately due and payable, and shall constitute a lien on the assets of the company. When wage benefit credits or investment tax credits were received in more than one year, the credits received in the most recent year shall be recovered first and then the credits received in earlier years up to the extent of the required recapture.
(b) In the case of a company which has failed to maintain the project at the required levels of employment and investment for the entire entitlement period, interest accrues from the due date for the return on which the credits being recaptured were used.
(c) Penalties for underpayment of withholding or income tax, as appropriate, do not accrue unless repayment is not made within ninety days after the requirement for recapture or disallowance becomes known or should have become known to the company.
(4) The recapture or disallowance required by this section may be waived by the board if the board finds the failure to attain or maintain the required levels of employment or investment was caused by unavoidable circumstances such as an act of God or national emergency.
(5) When recapture occurs with regard to any partnership, limited liability company, subchapter S corporation, joint venture, cooperative, or estate or trust, the partnership, limited liability company, subchapter S corporation, joint venture, cooperative, or estate or trust shall be liable for payment of the required recapture.
Source
Laws 2001, LB 620, § 38.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-5539 - Transfer of project.

77-5539.
Transfer of project.
A project covered by an agreement may be transferred in its entirety by sale or lease to another person or in an acquisition of assets qualifying under section 381 of the Internal Revenue Code of 1986, as amended. The acquiring persons shall be entitled to the same benefits as the original company and shall be subject to the same obligations, including recapture and disallowance of benefits received either before or after the transfer, as the original company would have been if the project was not transferred.
Source
Laws 2001, LB 620, § 39.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-5540 - Transactions and activities excluded.

77-5540.
Transactions and activities excluded.
The following transactions or activities shall not create an investment, result in an increase in the number of new employees, or create any wage benefit credits or investment tax credits under the Invest Nebraska Act except as specifically allowed by this section:
(1) The acquisition of a business located in this state which is continued by the company and which was operated in this state during the three hundred sixty-six days prior to the date of application or the date of acquisition, whichever is later. All of the employees of the acquired business during such period shall be considered base-year employees. Any investment in the acquisition of such business shall be deemed to have been made before the date of application;
(2) The moving of a business from one location in this state to another, which business was operated in this state during the three hundred sixty-six days prior to the date of application. All employees of the business during such three hundred sixty-six days who become employed at the project shall be deemed base-year employees;
(3) The purchase or lease of any property which was previously owned by the company or a related person. The first purchase by either the company or a related person shall be treated as investment if the item was first placed in service in this state after the date of the application;
(4) The renegotiation of any lease in existence on the date of application which does not materially change any of the terms of the lease, other than the expiration date, shall be presumed to be a transaction entered into for the purpose of generating benefits under the act and shall not be allowed in the computation of the meeting of any required levels of investment under the agreement;
(5) Any purchase or lease of property from a related person, except that the company will be allowed benefits under the act to which the related person would have been entitled on the purchase or lease of the property if the related person was considered the company; and
(6) 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 this state.
Source
Laws 2001, LB 620, § 40.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-5541 - Rules and regulations.

77-5541.
Rules and regulations.
The Department of Revenue, in consultation with the Governor and the Department of Economic Development, may, but is not required to, adopt and promulgate all rules and regulations determined by the Tax Commissioner in his or her discretion to be necessary or appropriate to carry out the purposes of the Invest Nebraska Act.
Source
Laws 2001, LB 620, § 41.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-5542 - Report; contents; joint hearing.

77-5542.
Report; contents; joint hearing.
(1) The Department of Revenue shall submit electronically an annual report to the Legislature no later than July 15 each year. The report shall list (a) the agreements which have been signed during the previous calendar year, (b) the agreements which are still in effect, (c) the identity of each company, and (d) the location of each project. The department shall, on or before September 1 of each 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) The report shall also state by industry group (a) the amount of wage benefit credits and investment tax credits allowed under the Invest Nebraska Act, (b) the number of direct jobs created at the projects, (c) the amount of direct capital investment under the act, (d) the estimated wage levels of jobs created by the companies at the projects, (e) the estimated indirect jobs and investment created on account of the projects, and (f) the projected future state and local revenue gains and losses from all revenue sources on account of the direct and indirect jobs and investment created on account of the projects.
(3) No information shall be provided in the report that is protected by state or federal confidentiality laws.
Source
Laws 2001, LB 620, § 42;
Laws 2007, LB223, § 28;
Laws 2012, LB782, § 144;
Laws 2013, LB612, § 6.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-5543 - Filing of applications; limitation.

77-5543.
Filing of applications; limitation.
(1) Except as provided in subsection (2) of this section, there shall be no project applications filed on or after June 1, 2005, without further authorization of the Legislature, except that all project applications and all project agreements pending, approved, or entered into before such date shall continue in full force and effect.
(2) There shall be no project applications for projects described in subdivision (3)(d) of section 77-5536 filed on or after October 1, 2002, without further authorization of the Legislature, except that all such project applications and all such project agreements pending, approved, or entered into before such date shall continue in full force and effect.
Source
Laws 2001, LB 620, § 43.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-5701 - Act, how cited.

77-5701.
Act, how cited.
Sections 77-5701 to 77-5735 shall be known and may be cited as the Nebraska Advantage Act.
Source
Laws 2005, LB 312, § 23;
Laws 2008, LB895, § 6;
Laws 2009, LB403, § 10;
Laws 2012, LB1118, § 1.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-5702 - Legislative findings.

77-5702.
Legislative findings.
The Legislature hereby finds and declares that it is the policy of this state to make revisions in Nebraska's tax structure in order to (1) encourage new businesses to relocate to Nebraska, (2) retain existing businesses and aid in their expansion, (3) promote the creation and retention of new, quality jobs in Nebraska, specifically jobs related to research and development, manufacturing, and large data centers, and (4) attract and retain investment capital in the State of Nebraska.
Source
Laws 2005, LB 312, § 24;
Laws 2014, LB836, § 3.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-5703 - Definitions, where found.

77-5703.
Definitions, where found.
For purposes of the Nebraska Advantage Act, the definitions found in sections 77-5704 to 77-5721 shall be used.
Source
Laws 2005, LB 312, § 25;
Laws 2008, LB895, § 7;
Laws 2012, LB1118, § 2.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-5704 - Applicability of other definitions.

77-5704.
Applicability of other definitions.
Any term shall have the same meaning as used in Chapter 77, article 27.
Source
Laws 2005, LB 312, § 26.
Annotations
Any term used in the Nebraska Advantage Act shall have the same meaning as used in chapter 77, article 27, of Nebraska's statutes. Ash Grove Cement Co. v. Nebraska Dept. of Rev., 306 Neb. 947, 947 N.W.2d 731 (2020).
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-5705 - Base year, defined.

77-5705.
Base year, defined.
Except for a tier 5 project that is sequential to a tier 2 large data center project, base year means the year immediately preceding the year of application. For a tier 5 project that is sequential to a tier 2 large data center project, the base year means the last year of the tier 2 large data center project entitlement period relating to sales tax exemptions.
Source
Laws 2005, LB 312, § 27;
Laws 2012, LB1118, § 4;
Laws 2022, LB1150, § 7.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-5706 - Base-year employee, defined.

77-5706.
Base-year employee, defined.
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 project.
Source
Laws 2005, LB 312, § 28.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-5707.01 - County average weekly wage, defined.

77-5707.01.
County average weekly wage, defined.
County average weekly wage for any year means the most recent average weekly wage paid by all employers in the county as reported by the Department of Labor by October 1 of the year prior to application.
Source
Laws 2008, LB895, § 8;
Laws 2013, LB34, § 1.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-5707.02 - Data center, defined.

77-5707.02.
Data center, defined.
Data center means computers, supporting equipment, and other organized assembly of hardware or software that are designed to centralize the storage, management, or dissemination of data and information, environmentally controlled structures or facilities or interrelated structures or facilities that provide the infrastructure for housing the equipment, such as raised flooring, electricity supply, communication and data lines, Internet access, cooling, security, and fire suppression, and any building housing the foregoing. A data center also includes a facility described in this section for the co-location of computers.
Source
Laws 2012, LB1118, § 3.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-5708 - Entitlement period, defined.

77-5708.
Entitlement period, defined.
Entitlement period, for a tier 1 or tier 3 project, means the year during which the required increases in employment and investment were met or exceeded and each year thereafter until the end of the ninth year following the year of application or the sixth year after the year the required increases were met or exceeded, whichever is sooner. Entitlement period, for a tier 2, tier 4, or tier 5 project, means the year during which the required increases in employment and investment were met or exceeded and each year thereafter until the end of the sixth year after the year the required increases were met or exceeded. Entitlement period, for a tier 6 project, means the year during which the required increases in employment and investment were met or exceeded and each year thereafter until the end of the ninth year after the year the required increases were met or exceeded.
Source
Laws 2005, LB 312, § 30;
Laws 2008, LB895, § 9.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-5709 - Equivalent employees, defined.

77-5709.
Equivalent employees, defined.
Equivalent employees means the number of employees computed by dividing the total hours paid in a year by the product of forty times the number of weeks in a year. A salaried employee who receives a predetermined amount of compensation each pay period on a weekly or less frequent basis is deemed to have been paid for forty hours per week during the pay period.
Source
Laws 2005, LB 312, § 31;
Laws 2013, LB34, § 2.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-5710 - Investment, defined.

77-5710.
Investment, defined.
Investment means the value of qualified property incorporated into or used at the project. For qualified property owned by the taxpayer, the value shall be the original cost of the property. For qualified 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.
Source
Laws 2005, LB 312, § 32.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-5711 - Motor vehicle, defined.

77-5711.
Motor vehicle, defined.
Motor vehicle means any motor vehicle, trailer, or semitrailer as defined in the Motor Vehicle Registration Act and subject to registration for operation on the highways.
Source
Laws 2005, LB 312, § 33.
Cross References
Motor Vehicle Registration Act, see section 60-301.
2023 Nebraska Revised Statutes › Chapter 77 - Revenue and Taxation › 77-5712 - Nebraska average weekly wage, defined.

77-5712.
Nebraska average weekly wage, defined.
Nebraska average weekly wage for any year means the most recent average weekly wage paid by all employers in all counties in Nebraska as reported by the Department of Labor by October 1 of the year prior to application.
Source
Laws 2005, LB 312, § 34;
Laws 2008, LB895, § 10;
Laws 2013, LB34, § 3.