NE 29-17-1 Nebraska Tax Incentives 2017-01-03

Is Nebraska Revenue Ruling 29-87-11 on Computer Software still in effect?

Short answer: No -- it has been withdrawn. Revenue Ruling 29-17-1 (issued January 3, 2017) rescinds Revenue Ruling 29-87-11, 'Computer Software,' which had been issued January 19, 1988. The one-page rescinding ruling gives no substitute guidance and states no reason, so the 1988 computer software ruling can no longer be relied on. For the current treatment of computer software under Nebraska's tax incentive programs, rely on current statutes, regulations, and guidance rather than the withdrawn 29-87-11.

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This page answers the general question as of 2017. Ezel answers yours, under current Nebraska tax law, with citations.

Disclaimer: This is an official Revenue Ruling of the Nebraska Department of Revenue, a guidance document stating the Department's interpretation of how Nebraska tax law applies. Each Nebraska guidance document carries the notice that it 'is advisory in nature but is binding on the Nebraska Department of Revenue until amended.' Unlike a private letter ruling, a Revenue Ruling is a general statement of Department policy rather than advice to a single taxpayer, but it can be amended, superseded, or made obsolete by a later ruling or a change in statute or regulation, many rulings in this series have been rescinded or superseded, so confirm it is still in effect before relying on it. Nebraska's local option sales and use taxes are administered by the Department, not self-collected by home-rule cities. This summary is informational only and is not legal or tax advice. Consult a licensed Nebraska tax professional about your situation.

About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page as a PDF) is the authoritative source for any reliance.

View original ruling (PDF)

Plain-English summary

This is a housekeeping ruling. The Nebraska Department of Revenue rescinds an older ruling: Revenue Ruling 29-87-11, "Computer Software," which had been issued January 19, 1988. This rescinding ruling appears under the Department's tax-incentives series and gives no substitute guidance and no stated reason -- it simply withdraws the decades-old computer software ruling.

What this means for you

Businesses dealing with computer software questions

Do not rely on the withdrawn Revenue Ruling 29-87-11 for the treatment of computer software. Because this rescinding ruling supplies no replacement, determine the current treatment from Nebraska's current statutes, regulations, and guidance, or request a current written determination for your specific facts.

Anyone citing older Nebraska guidance

This is another reminder that rulings in this series are regularly retired. Confirm any older Nebraska Revenue Ruling is still in effect before relying on it.

Common questions

Q: What does Revenue Ruling 29-17-1 do?
A: It rescinds Revenue Ruling 29-87-11, "Computer Software" (issued January 19, 1988).

Q: Does it explain why or give new guidance?
A: No. It states no reason and provides no substitute guidance.

Q: Can I still rely on 29-87-11?
A: No. Once rescinded, it can no longer be relied on; use current Nebraska statutes, regulations, and guidance.

Citations and references

Rescinds: Revenue Ruling 29-87-11, "Computer Software," issued January 19, 1988.
No statutes are cited in this rescinding ruling.

Source

Original ruling text

Revenue Ruling 29-17-1

Nebraska Tax Incentives

Rescinds Revenue Ruling 29-87-11

January 3, 2017

Tax Incentives—Revenue Ruling Rescinded
This guidance document is advisory in nature but is binding on the Nebraska
Department of Revenue (Department) until amended. A guidance document does
not include internal procedural documents that only affect the internal operations
of the Department and does not impose additional requirements or penalties
on regulated parties or include confidential information or rules and regulations
made in accordance with the Administrative Procedure Act. If you believe that this
guidance document imposes additional requirements or penalties on regulated
parties, you may request a review of the document.
This guidance document may change with updated information or added examples.
The Department recommends you do not print this document. Instead, sign up for
the subscription service at revenue.nebraska.gov to get updates on your topics
of interest.
The following revenue ruling is hereby rescinded:
29-87-11
Computer Software, issued January 19, 1988.
APPROVED:
Tony Fulton
Tax Commissioner
January 3, 2017

Nebraska Department of Revenue, PO Box 94818, Lincoln, Nebraska 68509-4818

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