Instructions For Nebraska Advantage Act Incentive Computation, Form 312n (Page 6 of 7) in pdf

Instructions For Form 312N, Page 2

General Instructions

The project’s investment level, employment level, and utilization of tax credits are summarized on Form 312N, Page 2.

Each year must be reported on a separate Form 312N. Many of the numbers reported on Page 2 are calculated on a supporting

schedule. See the supporting schedule and its instructions for information on how to calculate the required data.

If a correction to a prior year’s Form 312N is needed, complete a

Form

312XN, revise the supporting schedules, and attach to an

amended income tax return.

Section 1, the Analysis of Employment, requires statewide and project-specific employment information for the Nebraska

Department of Revenue’s Annual Report on Incentives, required by

Neb. Rev. Stat. §

77-5731.

The attainment or maintenance of levels at the project is based upon the cumulative net project investment on line 10

AND the number of new FTE employees on line 7.

Section 1 — Analysis of Employment

Specific Instructions

Lines 1 Through 3. The information reported relates to the taxpayer’s unitary, statewide activity, even if the project is limited

to only a portion of the taxpayer’s statewide activities.

Line 2. Report the statewide employee head count on the last day of the calendar quarter prior to application and the last day of

the year reported on this return for the taxpayer’s unitary business. This is the number of employees paid in the last pay period

prior to the date entered on line 1. An individual employee counts as one regardless of how many hours the individual worked in

the pay period. If there is an acquired Nebraska business added to the project, increase the Calendar Quarter column to include the

head count of the other business at the date of acquisition.

Line 3. Applications dated prior to July 15, 2010. For the 12-month period ending on the date on line 1, the average annual

employee compensation is equal to the wages subject to income tax withholding for all employees working in Nebraska for all

members of the unitary group, divided by the number of Forms W-2 issued to employees working in Nebraska during the year.

Applications dated on or after July 15, 2010. For the 12-month period ending on the date on line 1, the average annual employee

compensation is equal to the Medicare wages for all employees working in Nebraska for all members of the unitary group, divided

by the number of Forms W-2 issued to employees working in Nebraska during the year.

Lines 4 Through 7. The information reported on these lines is limited to activity at the defined project. The information reported

is based upon a calculation on Schedule A.

Section 2 — Analysis of Investment

Line 8. After the project meets or exceeds the minimum levels of investment and employment and the Department has issued

a notice of qualification, the applicant may file a Tax Incentive Claim for Refund of Sales and Use Taxes, Form 7-I, for a direct

refund. An applicant for a Tier 2, 4, 5, or 6 project may file for a direct refund of ALL sales and use taxes paid on qualified

property; while a Tier 1 project may file for a direct refund of 50% of the sales and use taxes paid.

The project is eligible for a direct refund on qualified property placed in service during each year of the entitlement period in which

the project meets or exceeds the minimum levels of investment and employment. In the first year the project meets or exceeds the

minimum levels of investment and employment, the direct refund may include taxes paid on all qualified property since the date

of application.

Enter the direct refund amount for the year reported. Prior to meeting the minimum levels of investment and employment, enter

zero (-0-).

Section 3 — Establishment and Usage of Tax Credits (Tiers 1, 2, 3, 4, and 6)

Line 11a. The credit balance reported on the prior year’s Form 312N must be reported on line 11a.

Line 11b. Any change to the previously reported credit balance due to a change in tax credits claimed, income tax usage, or a

distribution of tax credits must be reported on a Form 312XN and on line 11b.

Line 11c. Enter an adjustment to the credit balance due to recapture, a Department audit, or another Department approved

correction. This line cannot be used to report a change in tax credits earned on lines 16 or 17 in a previous year, or a change in credit

usage on lines 12, 13, 14, 19, or 20 of the Form 312N. Refer to the outline below for information on how to change the credit usage.

•

Income tax. File an amended income tax return and Form 312XN. Report the change in income tax usage on Form 312XN,

line 19b.

•

Distribution of tax credit. File an amended income tax, financial institution, or partnership return, Form 312XN, and a

revised Schedule II. Record the additional amount to be distributed on Form 312XN, line 20. The amount of tax credit

previously distributed cannot be reduced.

Instructions For Nebraska Advantage Act Incentive Computation, Form 312n Page 6

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