Employment & Investment Growth Act Summary of General Provisions
| Provision | Option 1 | Option 2 | Option 3 |
|---|---|---|---|
| Begins | - | - | - |
| Ends | 12-31-2005 | 12-31-2005 | 12-31-2005 |
| Application | Required | Required | Required |
| Application Fee | $500 | $500 | $500 |
| Nebraska Location | Anywhere | Anywhere | Anywhere |
Required Levels
| Provision | 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 | N/A | N/A |
| Indexing | N/A | N/A | N/A |
| Attainment Period | Up to 7 tax years | Up to 7 tax years | Up to 7 tax years |
| Entitlement Period | 7 tax years | 7 tax years | 7 tax years |
| Carryover Period | N/A | 8 tax years | 8 tax years |
| Maintenance Period | Entitlement period | Entitlement 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. | Person who is or whose owners mostly are subject to sales and use taxes and either an income tax or financial institutions tax. | 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 | Option 1 | Option 2 | Option 3 |
|---|---|---|---|
| Research & Development | Qualified | Qualified | Qualified |
| Manufacturing of Tangible Personal Property (TPP) | Qualified | Qualified | Qualified |
| Data Processing | Qualified | Qualified | Qualified |
| Telecommunications | Qualified | Qualified | Qualified |
| Insurance Services | Qualified | Qualified | Qualified |
| Financial Services | Qualified | Qualified | Qualified |
| Warehousing, Distribution of TPP | Qualified | Qualified | Qualified |
| Transportation of TPP | Qualified | Qualified | Qualified |
| Retail Sales of TPP if more than 20% is: [i] | Qualified | Qualified | Qualified |
| Administrative Management | Of any taxpayer activity | Of any taxpayer activity | Of any taxpayer activity |
| Restaurants | Non-qualified | Non-qualified | Non-qualified |
| Contractor & Repair Person | Non-qualified | Non-qualified | Non-qualified |
| Most Retailers Except those Stated Above | Non-qualified | Non-qualified | Non-qualified |
| Farming, Ranching & Livestock Operation | Non-qualified | Non-qualified | Non-qualified |
Benefits
| Provision | 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 | Property placed in service in attainment and entitlement periods | 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. | 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. | 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. |
Aircraft from year after application. Other after reaching the required levels. Through sixteenth December 31 after application. |
Use of Credits
| Provision | Option 1 | Option 2 | Option 3 |
|---|---|---|---|
| Retain Withholding | N/A | N/A | 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. | 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. | 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. | 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. | Except for aircraft, barges, motor vehicles, railroad rolling stock, watercraft, and property rented to another party. | |
| Owned Property | Valued at original cost. | Valued at original cost. | 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. | 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. | 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 | N/A | N/A |
September 19, 2005
i -- Retail sale of TPP if more 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.
