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Revenue Rulings

Pertaining to
Employment & Investment Growth Act (LB 775, as amended)

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The original cost of qualified property includes the purchase price and those additional costs incurred in placing the property into service that are actually capitalized under the Internal Revenue Code.
Investment has occurred when tangible personal property has been incorporated into improvements to real estate or place into service.
The required levels of employment and investment in an agreement will only be amended as contained in this ruling.
A salaried employee will be considered to have worked the number of hours that the employer has established as the regular workweek for a full-time hourly employee.
The amount of sales or use tax paid on the qualified investment shall not be considered a part of the amount of the investment even when the refund has not yet been received.
New employees who are employed at more than one of the taxpayer's locations can be included to determine the number of new employees or the credit on wages paid, only to the extent they are paid for work performed at the project.
A lease between the members of a unitary group will not be considered a lease for determining investment.
Qualified property placed in service in Nebraska for the first time after filing an application under the Employment and Investment Growth Act will be an investment in this state.
Agricultural products include those products that are grown or raised on the farm or ranch and the intermediate products processed from such products that are not yet ready for use by the final consumer.
The credits earned by a financial institution may be used to reduce the corporate income tax liability of the unitary group that includes the financial institution or to obtain a refund of sales or use tax paid on purchases by any member of the unitary group.
Computer software is not tangible property and, therefore, is not qualified property for the calculation of investment, but it is business equipment for the purposes of exemption from the personal property tax under the Employment and Investment Growth Act.
An S corporation may elect to use the single factor formula as provided in section 77-4105 of the Employment and Investment Growth Act.
A taxpayer may cancel an agreement signed under the Employment and Investment Growth Act and, subsequently, claim credits under the Employment Expansion and Investment Incentive Act. This ruling is effective for applications filed both before and after January 1, 1988.
Mainframe computers must be located in a separately supported environmentally controlled area to qualify for exemption from personal property tax. This ruling is effective for applications filed both before and after January 1, 1988.
Peripheral components must directly communicate with the mainframe business computer to qualify for exemption from personal property tax. This ruling is effective for applications filed before January 1, 1988.
Only those peripheral components specifically enumerated in the Employment and Investment Growth Act qualify for exemption from personal property tax. This ruling is effective for applications filed on and after January 1, 1988.
The lease by a taxpayer of property which it previously owned qualifies as investment only if the property was first placed in service by the taxpayer after the date of the application. The property will be valued at its original purchase price or cost.
The tax upon personal property that has been exempted pursuant to the Employment and Investment Growth Act may not be paid to the county in which the property would have been subject to tax until the taxpayer requests to amend its agreement or the project has fallen into recapture.
Nebraska Personal Property Return (Form 775P) must be filed with the Nebraska Department of Revenue on or before May 1 of each year. Failure to timely file will be deemed to be a waiver of the exemption for that year.
At the end of a project's entitlement period, a taxpayer may enter into a subsequent agreement under the Employment and Investment Growth Act, for a project which may include the same activities as the previous project.
Property acquired after the date of application for a subsequent agreement for the same project cannot qualify for the property tax exemption under the first agreement.

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