§ 77-2908 — Recapture of credits; written notice; procedure; amount

Nebraska § 77-2908

• Jurisdiction: Nebraska
• Ch. 77: Revenue and Taxation

Text

All or a portion of the credits received under the Nebraska
Job Creation and Mainstreet Revitalization Act shall be subject to recapture
by the department from the foreclosure of a lien which shall, as a condition
of the department issuing credits under the act, be imposed on the historically
significant real property as a lien having the priority of a tax lien pursuant
to the filing of a notice of lien. Credits shall be subject to recapture from
the person owning the historically significant real property on the date the
officer determines the recapture event occurred if at any time during the
five years after the historically significant real property is placed into
service the officer determines the historically significant real property
has been the subject of work not in substantial conformance with the approved
application or the documents from which the credit was calculated. If the
person owning the historically significant real property on the date the officer
determines the recapture event occurred is a corporation having an election
in effect under subchapter S of the Internal Revenue Code of 1986, as amended,
a partnership, or a limited liability company, the liability of the shareholders,
partners, or members for recapture shall be proportionate to their ownership
in the applicable corporation, partnership, or limited liability company.
Any action to recapture credits under this section may proceed only after
a written notice is given to the person owning the historically significant
real property on the date the officer determines the recapture event occurred
and that person is allowed a six-month cure period. Thereafter, the credit
shall be subject to recapture as follows:
(1) If the
event causing recapture occurs during the first year after the historically
significant real property is placed into service, one hundred percent of the
credit may be recaptured;
(2) If the event causing recapture occurs during the second year
after the historically significant real property is placed into service, eighty
percent of the credit may be recaptured;
(3) If the event causing recapture occurs
during the third year after the historically significant real property is
placed into service, sixty percent of the credit may be recaptured;
(4) If the
event causing recapture occurs during the fourth year after the historically
significant real property is placed into service, forty percent of the credit
may be recaptured; and
(5) If the event causing recapture occurs during the fifth year
after the historically significant real property is placed into service, twenty
percent of the credit may be recaptured.

Legislative History

Source: Laws 2014, LB191, § 8.