Employment & Investment Growth Act Records Retention

  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: 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.
      • Payroll records listing the number os salaried employees at the beginning of the year and each month end.

        Note: 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. Need records for the entire state even if the project is not statewide.
         

    • Wage Information
      • Payroll records documenting compensation paid by employee for those individuals working at the project.
      • State and federal payroll tax returns.
      • Summation of compensation paid to nonresident employees working at the project hired after the base year.

        Note: Compensation credit is based on TAXABLE wages (net of 401K, section 125, deferred compensation, etc.). Compensation credit excludes wages of non-resident employees hired after the base year.
         

  3. 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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