§ 77-5728 — Incentives; transfer; when; effect; disclosure of information

(1) The incentives allowed
under the Nebraska Advantage Act shall not be transferable except in the following
situations:
(a) Any credit allowable to a partnership, a limited liability
company, a subchapter S corporation, a cooperative, including a cooperative
exempt under section 521 of the Internal Revenue Code of 1986, as amended,
a limited cooperative association, or an estate or trust may be distributed
to the partners, members, shareholders, patrons, or beneficiaries in the same
manner as income is distributed for use against their income tax liabilities,
and such partners, members, shareholders, or beneficiaries shall be deemed
to have made an underpayment of their income taxes for any recapture required
by section 77-5727 . A credit distributed shall be considered a credit used
and the partnership, limited liability company, subchapter S corporation,
cooperative, including a cooperative exempt under section 521 of the Internal
Revenue Code of 1986, as amended, a limited cooperative association, estate,
or trust shall be liable for any repayment required by section 77-5727 ; and
(b) The incentives previously allowed and the future allowance
of incentives may be transferred when a project covered by an agreement is
transferred in its entirety by sale or lease to another taxpayer or in an
acquisition of assets qualifying under section 381 of the Internal Revenue
Code of 1986, as amended.
(2) The acquiring taxpayer, as of the date of notification
of the Tax Commissioner of the completed transfer, shall be entitled to any
unused credits and to any future incentives allowable under the act.
(3) The acquiring taxpayer shall be liable for any recapture
that becomes due after the date of the transfer for the repayment of any benefits
received either before or after the transfer.
(4) If a taxpayer operating a project and allowed a credit
under the act dies and there is a credit remaining after the filing of the
final return for the taxpayer, the personal representative shall determine
the distribution of the credit or any remaining carryover with the initial
fiduciary return filed for the estate. The determination of the distribution
of the credit may be changed only after obtaining the permission of the Tax
Commissioner.
(5) The Department
of Revenue may disclose information to the acquiring taxpayer about the project
and prior benefits that is reasonably necessary to determine the future incentives
and liabilities of the project.

Legislative History

Source: Laws 2005, LB 312, § 50; Laws 2006, LB 1003, § 16; Laws 2007, LB368, § 140; Laws 2013, LB34, § 8.