Nebraska Advantage Act Records Retention

This guidance document is advisory in nature but is binding on the Nebraska Department of Revenue (DOR) until amended. A guidance document does not include internal procedural documents that only affect the internal operations of DOR and does not impose additional requirements or penalties on regulated parties or include confidential information or rules and regulations made in accordance with the Administrative Procedure Act. If you believe that this guidance document imposes additional requirements or penalties on regulated parties, you may request a review of the document.

This guidance document may change with updated information or added examples. DOR recommends you do not print this document. Instead, sign up for the subscription service at revenue.nebraska.gov to get updates on your topics of interest.

  1. Investment
    • Tax depreciation schedule summarizing property placed in service on or after the date of application through the end of the project
    • List of qualified property placed in service after date of application and retired or sold prior to the end of the project
    • Purchase invoices supporting each addition
    • Contractor billings for real property additions
    • Contractor statements from each contractor ( example provided)
    • Lease agreements for any leases signed after the date of application
      Note: Investment credit is on purchases/leases net of Nebraska sales tax. Non-qualifying property includes custom computer software, land, construction in progress, motor vehicles, aircraft, barges, watercraft, or railroad rolling stock.
       
  2. Employment/Compensation Credit
    • Full-time equivalent calculation
      • Payroll records documenting hours paid (regular, overtime, sick, vacation, civil, etc.) to non-salaried employees, including start and termination dates.
      • Payroll records supporting hours paid to salaried employees, including start and termination dates. 
        Important: Retain the base year employment records for the entire term of the project. Changes to the computations may be necessary up to the end of the entitlement period. Records for the entire state, even if the project is not statewide, must be retained.

        An acquisition of a Nebraska business, which operated in Nebraska in the 366 days prior to the acquisition date, will require an addition to the base-year hours. The applicant must have the predecessor's employment records for the business activity to be added to the project.

      • For applications on or after 10/01/2009, records supporting electronic verification of employees’ eligibility status.
         

  3. Wage Information
    • Payroll records documenting compensation paid by employee for those individuals working at the project.
      • For applications on or after 7/15/2010, Compensation credit is based on MEDICARE wages (net of section 125, third-party sick pay, etc.)
      • For applications prior to 7/15/2010, Compensation credit is based on TAXABLE wages (net of 401K, section 125, deferred compensation, third-party sick pay, etc.).
    • State and federal payroll tax returns.
       
  4. Initial sales tax refund
    • Receivable account or tracking of refundable sales and use tax paid on qualified property placed in service at the project after date of application.
    • Purchase invoices.
    • Use tax detail supporting any tax accruals.
    • Completed contractor statements.
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