Nebraska Administrative Code › Topic - ECONOMIC DEVELOPMENT, DEPARTMENT OF › Title 85 - DEPARTMENT OF ECONOMIC DEVELOPMENT › Chapter 1C - Community Development Assistance Act Rules and Regulations › Section 85-1C-007 - Requesting of Tax Credits by Contributors

Current through June 17, 2024
007.01 Form CDAA 1
				- Tax Credit Request Form
After an Individual or Business Firm makes a contribution to
				  a Community Betterment Organization for a project or program that has been
				  certified for Tax Credit status by the Department, such Individual or Business
				  Firm may apply to the Department for a Tax Credit.
Application for a Tax Credit shall occur by submission to the
				  Department, Form CDAA 1 - Tax Credit Request Form, with documentation
				  evidencing the contribution made to the project or program that was certified
				  for Tax Credit status by the Department.
007.02 In-Kind Contributions
When business firms make an in-kind contribution to
				  community service projects in the nature of operating supplies or maintenance,
				  tax credits will be granted on the net cost of such items to the donor.
				  Invoices or any other documents showing proof of cost to the donor shall be
				  submitted with the application for tax credits. It is also required that the
				  business firm submit an affidavit which guarantees that the contribution will
				  be or has been claimed as a charitable contribution under the Internal Revenue
				  Service.
007.03
				Contributions of Personnel
The cost of a business firm loaning personnel in order to
				  provide expertise and technical assistance to a community betterment
				  organization will be considered contributions and will be eligible for a tax
				  credit; Personnel time shall be prorated at an hourly wage and other benefits
				  from the firm. The exact amount of time spent on the project shall be indicated
				  and noted by the employee and signed by the community betterment organization.
				  It is also required that the business firm submit an affidavit which guarantees
				  that the contribution will be or has been claimed as a charitable contribution
				  under the Internal Revenue Service.
007.04 Contributions to Capital Construction
				Campaigns
A capital construction campaign is the raising of funds for
				  the construction or permanent improvement to property or the purchase of
				  furniture or equipment to be used as outlined in the community betterment
				  organization's proposal.
007.04A
				Capital construction campaign programs can be approved for up to a three-year
				period. Each year of the three-year period must be approved individually.
007.04B Any building not owned by
				a community betterment organization to be renovated must have a lease which
				would cover the useful life of the renovations.
007.04C Capital construction campaigns may
				only cover the work as outlined in the community betterment organization's
				proposal.
007.04D Campaign expenses
				such as fund raisers, materials, ads, rentals, and the like shall not be
				included as program costs.
007.04E
				Cost incurred under the program shall be for construction related costs only.
				Payment of interest on loans is not an eligible cost.
007.04F Community betterment organizations
				must provide activities eligible under this program to low and moderate income
				individuals in designated chronically, economically distressed areas to be
				eligible for capital construction projects.
007.04G In addition to other application
				requirements, proposals for capital construction campaigns must include a
				statement of the total number of individuals who are being served or who will
				be served by the organization, appropriate plans and costs, a description of
				specific programs aimed toward low income individuals and how many will be
				served by the program and a statement as to how the facility will be used in
				the program.
007.04H The tax credit
				allowed for the capital construction campaign will be determined by prorating
				the entire cost of the capital construction, excluding ineligible costs under
				this chapter, to the percentage of low income individuals served by the
				organization in a designated chronically economically distressed area. The
				amount of tax credits under this subsection shall be subject to the limitations
				previously set forth.