Tax Incentives Home | Research and Development Information
Sections 77-5801 to 77-5807 shall be known and may be cited as the Nebraska Advantage Research and Development Act.
Source:
Laws 2005, LB 312, § 59.
77-5802. Business firm, defined.
For purposes of the Nebraska Advantage Research and Development Act, business firm means any business entity, including a corporation, a fiduciary, a sole proprietorship, a partnership, a joint venture, a limited liability company, or another private entity, that is subject to sales tax under section 77-2703. Business firm does not include a political subdivision or an organization that is exempt from income taxes under section 501(a) of the Internal Revenue Code of 1986, as amended.
Source:
Laws 2005, LB 312, § 60.
77-5803. Research tax credit; amount.
(1) Any business firm which makes expenditures in research and experimental activities as defined in section 174 of the Internal Revenue Code of 1986, as amended, in this state shall be allowed a research tax credit as provided in the Nebraska Advantage Research and Development Act. The credit amount shall equal fifteen percent of the federal credit allowed under section 41 of the Internal Revenue Code of 1986, as amended. The credit shall be allowed for the first tax year it is claimed and for the four tax years immediately following.
(2) For any business firm doing business both within and without this state, the amount expended in research and experimental activities in this state in any tax year may be determined either by satisfactory proof of purchase or by apportioning the amount of the credit on the federal income tax return to the state based on the average of the property factor as determined in section 77-2734.12 and the payroll factor as determined in section 77-2734.13.
Source:
Laws 2005, LB 312, § 61.
Laws 2007, LB 223, § 31.
Operative date September 1, 2007
77-5804. Research tax credit; use.
(1) The credit allowed under section 77-5803 may be used to obtain a refund of state sales and use taxes paid, may be used 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 tax 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 tax 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 expenditures.
(4) Credits distributed to a partner, limited liability company member, shareholder, or beneficiary may be used against the income tax liability of the partner, member, shareholder, or beneficiary receiving the credits.
Source:
Laws 2005, LB 312, § 62.
77-5805. Building materials; sales or use tax; presumption.
For purposes of subsections (2) and (3) of section 77-5804, 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 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 state sales and use taxes were paid on all building materials, may presume that forty percent of the cost of the improvement was for building materials annexed to real estate on which the tax was paid.
Source:
Laws 2005, LB 312, § 63.
77-5806. Applicability of act.
The Nebraska Advantage Research and Development Act shall be operative for all tax years beginning or deemed to begin on or after January 1, 2006, under the Internal Revenue Code of 1986, as amended. No business firm shall be allowed to first claim the credit for any tax year beginning or deemed to begin on or after January 1, 2011, under the Internal Revenue Code of 1986, as amended.
Source:
Laws 2005, LB 312, § 64.
Beginning July 15, 2007, and each July 15 thereafter the Tax Commissioner shall prepare a report stating the total amount of credits claimed on income tax returns or as refunds of sales and use tax during the previous calendar year. No information shall be provided in the report that is protected by state or federal confidentiality laws.
Source:
Laws 2005, LB 312, § 65.
