§ 77-5715 — Qualified business, defined

Nebraska § 77-5715

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

Text

(1) For a tier 2, tier 3, tier 4, or tier
5 project, qualified business means any business engaged in:
(a) The conducting of research, development, or testing for
scientific, agricultural, animal husbandry, food product, or industrial purposes;
(b) The performance of data processing, telecommunication,
insurance, or financial services. For purposes of this subdivision, financial
services includes only financial services provided by any financial institution
subject to tax under Chapter 77, article 38, or any person or entity licensed
by the Department of Banking and Finance or the federal Securities and Exchange
Commission and telecommunication services includes community antenna television
service, Internet access, satellite ground station, call center, or telemarketing;
(c) The assembly, fabrication, manufacture, or processing
of tangible personal property;
(d) The administrative management of the taxpayer's activities,
including headquarter facilities relating to such activities or the administrative
management of any of the activities of any business entity or entities in
which the taxpayer or a group of its shareholders holds any direct or indirect
ownership interest of at least ten percent, including headquarter facilities
relating to such activities;
(e) The storage, warehousing, distribution, transportation,
or sale of tangible personal property;
(f) The sale of tangible personal property if the taxpayer
derives at least seventy-five percent or more of the sales or revenue attributable
to such activities relating to the project from sales to consumers who are
not related persons and are located outside the state;
(g) The sale of software development services, computer systems
design, product testing services, or guidance or surveillance systems design
services or the licensing of technology if the taxpayer derives at least seventy-five
percent of the sales or revenue attributable to such activities relating to
the project from sales or licensing either to customers who are not related
persons and located outside the state or to the United States Government,
including sales of such services, systems, or products delivered by providing
the customer with software or access to software over the Internet or by other
electronic means, regardless of whether the software or data accessed by customers
is stored on a computer owned by the applicant, the customer, or a third party
and regardless of whether the computer storing the software or data is located
at the project;
(h) The research, development, and maintenance of an Internet
web portal. For purposes of this subdivision, Internet web portal means an
Internet site that allows users to access, search, and navigate the Internet;
(i) The research, development, and maintenance of a data center;
(j) The production
of electricity by using one or more sources of renewable energy to produce
electricity for sale. For purposes of this subdivision, sources of renewable
energy includes, but is not limited to, wind, solar, geothermal, hydroelectric,
biomass, and transmutation of elements; or
(k) Any combination of the activities listed
in this subsection.
(2) For a tier 1 project, qualified business means any business
engaged in:
(a) The conducting of research, development, or testing for
scientific, agricultural, animal husbandry, food product, or industrial purposes;
(b) The assembly, fabrication, manufacture, or processing
of tangible personal property;
(c) The sale of software development services, computer systems
design, product testing services, or guidance or surveillance systems design
services or the licensing of technology if the taxpayer derives at least seventy-five
percent of the sales or revenue attributable to such activities relating to
the project from sales or licensing either to customers who are not related
persons and are located outside the state or to the United States Government,
including sales of such services, systems, or products delivered by providing
the customer with software or access to software over the Internet or by other
electronic means, regardless of whether the software or data accessed by customers
is stored on a computer owned by the applicant, the customer, or a third party
and regardless of whether the computer storing the software or data is located
at the project; or
(d) Any combination of activities listed in this subsection.
(3) For a tier 6 project, qualified business means any business
except a business excluded by subsection (4) of this section.
(4) Except for business activity described in subdivision
(1)(f) of this section, qualified business does not include any business activity
in which eighty percent or more of the total sales are sales to the ultimate
consumer of (a) food prepared for immediate consumption or (b) tangible personal
property which is not assembled, fabricated, manufactured, or processed by
the taxpayer or used by the purchaser in any of the activities listed in subsection
(1) or (2) of this section.

Legislative History

Source: Laws 2005, LB 312, § 37; Laws 2007, LB223, § 29; Laws 2008, LB895, § 12; Laws 2009, LB164, § 4; Laws 2010, LB918, § 2; Laws 2012, LB1118, § 5; Laws 2013, LB104, § 3. Annotations: In the context of the Nebraska Advantage Act, "manufacturing" and "processing" have distinct meanings. In the absence of a statute or regulation indicating the contrary, the term "processing" means to subject to a particular method, system, or technique of preparation, handling or other treatment designed to prepare tangible personal property for market, manufacture, or other commercial use which does not result in the transformation of property into a substantially different character. Ash Grove Cement Co. v. Nebraska Dept. of Rev., 306 Neb. 947, 947 N.W.2d 731 (2020).