Nebraska Statutes 77-1113. Vested tax credit; utilization
A person or entity that acquires a qualified equity investment earns a vested tax credit against the tax imposed by the Nebraska Revenue Act of 1967 or sections 44-101 to 44-165, 77-907 to 77-918, or 77-3801 to 77-3807 that may be utilized as follows:
Terms Used In Nebraska Statutes 77-1113
- Applicable percentage: means zero percent for the first two credit allowance dates, seven percent for the third credit allowance date, and eight percent for the next four credit allowance dates. See Nebraska Statutes 77-1103
- Person: shall include bodies politic and corporate, societies, communities, the public generally, individuals, partnerships, limited liability companies, joint-stock companies, and associations. See Nebraska Statutes 49-801
- Purchase price: means the amount paid to the issuer of a qualified equity investment for the qualified equity investment. See Nebraska Statutes 77-1107
- Qualified equity investment: means any equity investment in, or long-term debt security issued by, a qualified community development entity that:
(a) Is acquired after January 1, 2012, at its original issuance solely in exchange for cash. See Nebraska Statutes 77-1110
- Tax credit: means a credit against the tax otherwise due under the Nebraska Revenue Act of 1967 or sections 44-101 to 44-165, 77-907 to 77-918, or 77-3801 to 77-3807. See Nebraska Statutes 77-1112
- Year: shall mean calendar year. See Nebraska Statutes 49-801
(1) On each credit allowance date of such qualified equity investment such acquirer, or subsequent holder of the qualified equity investment, shall be entitled to utilize a portion of such tax credit during the taxable year that includes such credit allowance date;
(2) The tax credit amount shall be equal to the applicable percentage for such credit allowance date multiplied by the purchase price paid to the issuer of such qualified equity investment; and
(3) The amount of the tax credit claimed shall not exceed the amount of the taxpayer’s tax liability for the tax year for which the tax credit is claimed.
Any taxpayer that claims a tax credit shall not be required to pay any additional retaliatory tax under section 44-150 as a result of claiming such tax credit. Any tax credit claimed under this section shall be considered a payment of tax for purposes of subsection (1) of section 77-2734.03.