Foreign Adversarial Company FAQs

A parent company is a company that directly or indirectly holds more than 50 percent control of the subsidiary. 

Direct control is holding more than 50% control of the subsidiary by direct ownership.

Indirect control is when an ultimate parent holds more than 50% control of other subsidiaries that in turn hold more than 50% control of an underlying subsidiary. An ultimate parent is the topmost company within the hierarchy of the entire organization.  
 

UPDATED: 7/18/2026: Yes, if a member of the unitary group is or has a subsidiary that is a foreign adversarial company, the incentive benefits will be reduced based on the apportionment computed on Section F of the Nebraska Incentives Credit Computation, Form 3800N. Foreign Adversarial Companies cannot directly earn credits under Neb. Rev. Stat. § 77-3,114.

UPDATED: 7/18/2026: Yes. Neb. Rev. Stat. § 77-3,114 defines company as any "corporation, partnership, association, organization, or other combination of persons". Any pass-through entity which falls into this group may be a foreign adversarial company if they meet the elements of a foreign adversarial company listed in the statute.

No, a foreign adversarial company can neither earn nor receive any benefits from Nebraska incentive programs.

After July 18, 2026, a taxpayer that is not a foreign adversarial company, but has a direct or indirect subsidiary that is a foreign adversarial company, or is part of a unitary group which includes one or more foreign adversarial companies, will use an apportionment formula to ensure that benefits are used only against the income taxes of the members of the same group of companies that are not foreign adversarial companies. To apportion credits, taxpayers will need to complete Section F of the Nebraska Incentives Credit Computation, Form 3800N.