Nebraska State Tax Rulings
Free plain-English summaries of state tax letter rulings and advisory opinions issued in Nebraska, with full citations and the original source on every page.
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Can a business with an existing Nebraska Advantage (or LB 775) project file a new application for a subsequent project covering the same activities, and how does timing affect its benefits?
Yes, you can file for a subsequent project covering the same activities -- but timing is everything. Revenue Ruling 29-17-2 (issued December 13, 2017) says a taxpayer with an Employment and Investment…
Can a taxpayer convert an application or agreement under the old LB 775 Employment and Investment Growth Act into the Nebraska Advantage Act (LB 312)?
No. Revenue Ruling 29-05-9 holds that an application or agreement under the older Employment and Investment Growth Act (LB 775) cannot be converted into an application or agreement under the Nebraska …
Can property bought after a taxpayer applies for a subsequent Nebraska incentive agreement still get the property tax exemption under the first agreement?
No -- filing the second application draws the line. Under Revenue Ruling 29-96-2, property acquired after the date a taxpayer applies for a subsequent agreement covering the same project cannot qualif…
At the end of a Nebraska incentive project, can a company sign a new agreement for the same activities and keep using its old credits?
Yes. Under Revenue Ruling 29-93-3, when a project's entitlement period ends, a taxpayer may enter a subsequent Employment and Investment Growth Act agreement covering the same activities as the previo…
When must I file the Nebraska Personal Property Return (Form 775P) to keep my LB 775 property tax exemption?
By May 1. Under Revenue Ruling 29-93-2, the Nebraska Personal Property Return (Form 775P), with its accompanying schedules, must be filed with the Department of Revenue on or before May 1 of each year…
Can a company just start paying the county the property taxes on property that's exempt under Nebraska's LB 775 incentive agreement?
No — not voluntarily. Under Revenue Ruling 29-93-1, property tax on personal property that is exempt under the Employment and Investment Growth Act may not be paid to the county until either the taxpa…
In a sale-leaseback, does property a company sells and leases back count as 'investment' for Nebraska's LB 775 incentive?
Only if it was first put into service after the application. Under Revenue Ruling 29-91-3, when a taxpayer leases property in a sale-leaseback that it previously owned, that property qualifies as 'inv…
Which computer peripheral components qualify for Nebraska's LB 775 personal property tax exemption under the amended, post-1989 rule?
Only six specifically listed components, and only if climate-controlled. Under Revenue Ruling 29-91-2 — which applies the amended definition in Neb. Rev. Stat. § 77-4105(2)(b), R.S.Supp. 1988 — only t…
Which computer peripheral components qualify for Nebraska's LB 775 personal property tax exemption under the older, pre-1989 rule?
They must directly communicate with the mainframe business computer. Under Revenue Ruling 29-91-1 — which applies the older statutory definition (Neb. Rev. Stat. § 77-4105(2)(b), R.S.Supp. 1987, exemp…
What makes a mainframe business computer qualify for Nebraska's LB 775 personal property tax exemption?
It has to sit in its own environmentally controlled area. Under Revenue Ruling 29-89-1, mainframe computers must be located in a separately supported, environmentally controlled area to qualify for th…
Can a Nebraska company cancel its Employment and Investment Growth Act (LB 775) agreement and instead claim credits under the Employment Expansion and Investment Incentive Act?
Yes, if it cancels the first agreement and meets three conditions. Under Revenue Ruling 29-88-2, a taxpayer that signed an Employment and Investment Growth Act (LB 775) agreement -- and later expects …
Can a Nebraska S corporation with an Employment and Investment Growth Act (LB 775) agreement elect the single sales-factor apportionment formula, even though the credit itself flows through to shareholders?
Yes. Under Revenue Ruling 29-88-1, an S corporation may elect to use the single (sales-only) factor apportionment formula provided in Neb. Rev. Stat. section 77-4105 of the Employment and Investment G…
If a company moves used equipment from another state into its Nebraska LB 775 project, does that equipment count as a qualifying investment in Nebraska?
Yes. Under Revenue Ruling 29-87-8, qualified property placed in service in Nebraska for the first time after filing an application under the Employment and Investment Growth Act (LB 775) is an investm…
For Nebraska's LB 775 personal property tax exemption, do 'agricultural products' include partially-processed farm goods that a company buys and processes further before they reach the consumer?
Yes. Under Revenue Ruling 29-87-9, 'agricultural products' for purposes of the LB 775 personal property tax exemption include products grown or raised on the farm or ranch and the intermediate product…
For Nebraska's LB 775 incentives, how are leases between members of the same unitary group treated -- do they create qualifying investment or disqualify rented-out property?
They are disregarded, because the unitary group is a single taxpayer. Under Revenue Ruling 29-87-7, for the Employment and Investment Growth Act a unitary group of corporations is only one taxpayer, s…
If an employee works at my Nebraska LB 775 project and also at my other locations, can I count them toward the new-employee and wage-credit calculations?
Yes, but only for the work done at the project. Under Revenue Ruling 29-87-6, new employees (who are not base-year employees) working at more than one of the taxpayer's locations can be included in de…
If a financial institution in a Nebraska unitary group earns LB 775 credits but files no income tax return, can the group still use those credits to cut its corporate income tax and get sales/use tax refunds?
Yes. Under Revenue Ruling 29-87-10, credits earned under the Employment and Investment Growth Act by a financial institution that is a member of a unitary group may be used to reduce the corporate inc…
When a company counts new full-time employees to qualify for Nebraska's LB 775 (Employment and Investment Growth Act) tax incentives, how many hours does a salaried worker count for?
A salaried employee is counted using the number of hours the employer has established as the regular workweek for a full-time hourly employee. Under Revenue Ruling 29-87-4, a salaried worker is treate…
Will the Nebraska Tax Commissioner agree to change the required employment and investment levels in a signed LB 775 agreement?
Only in two narrow situations. Under Revenue Ruling 29-87-3, an Employment and Investment Growth Act agreement will only be amended as set out in the ruling. The Act does not specifically prohibit ame…
When is tangible personal property treated as 'invested' for Nebraska's LB 775 incentives -- at order, delivery, or when it is actually put to use?
When the property is placed in service or incorporated into real-estate improvements. Under Revenue Ruling 29-87-2, for the Employment and Investment Growth Act investment has occurred when tangible p…
For Nebraska's LB 775 incentives, what counts toward the 'original cost' of qualified property I buy and install -- just the purchase price, or also freight, interest, and my own workers' installation labor?
It is the purchase price plus the other placing-in-service costs you capitalize federally. Under Revenue Ruling 29-87-1, for the Employment and Investment Growth Act the 'original cost' of qualified p…
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These are official tax letter rulings and advisory opinions issued by Nebraska's revenue authority in response to questions from specific taxpayers about how the tax law applies to their facts. A ruling is binding on the department only for the taxpayer who requested it and cannot be relied on by anyone else, but it is strong evidence of how the state reads the law. Every ruling above has a plain-English question and short answer, plus a link to the full original source.