Instructions For Nebraska Advantage Act Incentive Computation, Form 312n (Page 2 of 7) in pdf

Time Periods. The required information varies for the project’s attainment, entitlement, and carryover period

and by the tier selected. The maximum life of a project impacts the length of the entitlement or carryover period for

certain tiers. Refer to the table below for information on time periods for each tier.

Time Period

Tier 1

Tier 2

Tier 3

Tier 4

Tier 5

Tier 6

Attainment

5 years

7 years

5 years

7 years

5 years

Entitlement

6 or 7 years*

7 years

6 or 7 years*

7 years

10 years

Carryover

0 to 3 years* 2 to 8 years* 0 to 3 years* 2 to 8 years*

N/A

1 year

Maximum Life

10 years

15 years

10 years

15 years

13 years

15 years

*Time periods are limited by the maximum life of the project.

References to Tier 2 in this form include Tier 2, Tier 2 Web Portal or Data Center, and Tier 2 Large Data Center

(Tier 2LDC) applications. References to Tier 5 in this form include Tier 5, Tier 5 Renewable Energy, Tier 5 Web

Portal or Data Center, and Tier 5 Large Data Center (Tier 5LDC) applications.

Terms

Refer to the

Nebraska Advantage Act

statutes for statutory definitions of terms. The definitions stated in these

instructions do not supersede, alter, or otherwise change any provisions of the Nebraska tax code, regulations,

Department rulings, or court decisions.

Applicant. An applicant is one or more persons listed in the application, or in an amendment to the application, who

performs the qualified business activities at the project, and is part of the taxpayer as defined.

Attainment Period. The attainment period is the number of years, including the year of application, allowed for the

applicant to meet the minimum levels of investment and employment.

Tiers 1, 3, and 6. The applicant must meet the minimum levels within five years.

Tiers 2, 4, and 5. The applicant must meet the minimum levels within seven years.

Base Year. The base year is the year prior to the year of application. For a Tier 5LDC project, the base year is the last year

of the Tier 2LDC entitlement period relating to direct sales tax refunds.

Base-Year Employee. A base-year employee is an individual who is employed at the project and subject to Nebraska

income tax on compensation received from the taxpayer or its predecessors during the base year.

Base-year employee also includes an individual who was subject to Nebraska income tax on compensation received from:

•

An acquired business during the 366 days preceding the date of acquisition, if the acquisition occurred after the date

of application; and/or

•

The taxpayer or its predecessor, during the 366 days prior to the date of application, if business activities were

moved to what is now the project.

Carryover Period. The carryover period starts after the end of the entitlement period. No additional credits are earned

during the carryover period.

Tiers 1 and 3. Credits may not be carried over more than nine years after the year of application.

Tiers 2 and 4. Credits may not be carried over more than 14 years after the year of application.

Tier 6. Credits may not be carried over more than one year past the end of the entitlement period.

Compensation.

Applications dated before July 15, 2010. Compensation means wages and other payments subject to income tax

withholding for federal income tax purposes.

Applications dated on or after July 15, 2010. Compensation means wages and other payments subject to the

federal Medicare tax.

Credit Refund of Sales and Use Taxes. A credit refund is a refund to the applicant of Nebraska and local sales and use

taxes paid on otherwise non-refundable purchases made after the year the minimum levels of investment and employment

were met, through the end of the carryover period. The credits used must have been earned in a prior year.

Tiers 1, 2, 3, and 4. Purchases eligible for the credit refund must have been used at the project. A Tier 1 applicant

may claim 50% of sales and use taxes paid on qualified property placed in service after the year of qualification as a

credit refund.

Tiers 2LDC and 6. The purchases eligible for a credit refund must have been used in Nebraska.

Instructions For Nebraska Advantage Act Incentive Computation, Form 312n Page 2

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