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Employment & Investment Growth Act
Summary of General Provisions

Back to LB 775 Information


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
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.
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.


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