Notice of the Expiration of GIL 29-20-2

Taxpayers with an active Nebraska Advantage Act (Act) project should be aware that GIL 29-20-2, Treatment of Alternative Employment Arrangements Due to the COVID-19 National Emergency for Purposes of Calculating Employment Levels under the Nebraska Advantage Act, will expire on July 30, 2021. The GIL provided that it was applicable to the tracking of hours and calculating of new employees beginning on March 13, 2020 and ending on January 1, 2021, or 30 days after the end of the declared emergency, whichever is later. Governor Ricketts issued Executive Order No. 21-09 which declared that the COVID-19 pandemic state of emergency ended at 11:59 p.m. June 30, 2021. Therefore GIL 29-20-2 will expire on July 30, 2021.

Pursuant to GIL 29-20-2, the Nebraska Department of Revenue (DOR) considers employees who worked at a project location prior to March 13, 2020, and who were displaced by the pandemic, to have worked at the project location through July 30, 2021.  After July 30, 2021, employees must work at the project, or as a teleworker pursuant to Neb. Rev. Stat. § 77‑5714(3), to count toward the calculation of new employees.  Similarly, GIL 29-20-2 explained that new employees hired after March 13, 2020 are considered to have worked at the project location from the date of hire if they physically work at the project, or as teleworkers pursuant to Neb. Rev. Stat. § 77-5714(3), on or before July 30, 2021.  After July 30, 2021, taxpayers should resume tracking the location from which each employee works.  Finally, GIL 29-20-2 explained that DOR considers employees who worked from an out-of-state residence as having Nebraska source income during the period in which the GIL was effective. Beginning on July 30, 2021, employers must review their payroll systems for income tax withholding purposes for employees working at a location that is in a different state to assure compliance with Nebraska requirements in Reg-21-006 and Reg-22-003.