Summary of General Provisions of Nebraska Employment and Investment Growth Act

Summary of General Provisions
of Nebraska Employment and Investment Growth Act

Click Here for a Summary of Other Nebraska Tax Incentive Programs

Provision	LB 775 Employment & Investment Growth Act
	Option 1	Option 2	Option 3
Begins
Ends	12-31-2005
Application	Required
Application Fee	$500
Nebraska Location	Anywhere
REQUIRED LEVELS
Provision	LB775 Employment & Investment Growth Act
	Option 1	Option 2	Option 3
Investment	net gain of $20,000,000	$3,000,000	$10,000,000
Employment	N/A	30	100
Wage Level	N/A
Indexing	N/A
Attainment Period	Up to 7 tax years
Entitlement Period	7 tax years
Carryover Period	N/A	8 tax years
Maintenance Period	Entitlement period
Eligible Participant	Person who is or whose owners mostly are subject to sales and use taxes and either an income tax or financial institutions tax.
BUSINESS ACTIVITIES
Provision	LB775 Employment & Investment Growth Act
	Option 1	Option 2	Option 3
Research & Development	Qualified
Manufacturing of Tangible Personal Property (TPP)	Qualified
Data Processing	Qualified
Telecommunications	Qualified
Insurance Services	Qualified
Financial Services	Qualified
Warehousing, Distribution of TPP	Qualified
Transportation of TPP	Qualified
Retail Sales of TPP if more than 20% is: [i]	Qualified
Administrative Management	Of any taxpayer activity
Restaurants	Non-qualified
Contractor & Repair Person	Non-qualified
Most Retailers Except those Stated Above	Non-qualified
Farming, Ranching & Livestock Operation	Non-qualified
BENEFITS
Provision	LB775 Employment & Investment Growth Act
	Option 1	Option 2	Option 3
Direct Refund of Sales Tax on Qualified Property or an Aircraft	Property placed in service in attainment and entitlement periods.
Investment Credit on Qualified Property	N/A	10% investment credit earned from date of application through end of the entitlement period.
Credit on Employment Growth	N/A	5% compensation credit earned in the entitlement period on taxable wages of new, resident employees.
Personal Property Tax Exemption [ii]	N/A		Aircraft from year after application. Other after reaching the required levels. Through sixteenth December 31 after application.
USE OF CREDITS
Provision	LB775 Employment & Investment Growth Act
	Option 1	Option 2	Option 3
Retain Withholding	N/A
Credit Refund of Sales and Use Taxes Paid on Purchases at the Project	N/A	During the entitlement and carryover period and to the extent of credits earned in a prior year.
Credit to Reduce Income Tax Liability	N/A	Credits may be used after other non-refundable credits to pay up to 100% of NE unitary tax liability.
Distribution of Credits to Owner of Flow-through Entity	N/A	Credits may be distributed in the same manner as income and used to pay up to 100% of NE income tax liability.
Qualified Property is Tangible, Depreciable Property	Except for aircraft, barges, motor vehicles, railroad rolling stock, watercraft, and property rented to another party.
Owned Property	Valued at original cost.
Rented, Qualified Property	Average net annual rent multiplied by a number of years, not to exceed 10 years, or 3 years after the end of the entitlement period, whichever is earlier.
Report by Project	N/A

September 19, 2005

i -- Retail sale of TPP if mor than 20% is: at wholesale; manufactured by seller; or sold to others in a qualified activity.

ii -- Personal property tax exemption on turbine-powered aircraft, mainframe business computers and some peripherals, and equipment involved directly in processing an agricultural product or for LB 312, distribution center equipment used to store or move products.