A. For taxable years beginning from and after December 31, 2014, before a taxpayer can apply to the department of revenue for certification of additional income tax credits for increased research activities involving basic research payments to a university under Section 43-1074.01, subsection A, paragraph 1, subdivision (c) or section 43-1168, subsection A, paragraph 1, subdivision (d), a taxpayer shall obtain certification from the authority that the basic research payments meet the requirements of this section. The taxpayer shall apply to the authority for certification of the basic research payments at a time, on a form and in a manner prescribed by the authority.

Ask a legal question, get an answer ASAP!
Click here to chat with a lawyer about your rights.

B. The authority shall process and evaluate each application for certification of basic research payments to a university up to an amount that corresponds to ten million dollars per calendar year in aggregate combined projected additional tax credits under Section 43-1074.01, subsection A, paragraph 1, subdivision (c) and section 43-1168, subsection A, paragraph 1, subdivision (d). The applicant shall identify the amount of projected additional tax credits corresponding to the basic research payments to a university sought to be certified. The amount of additional tax credits a taxpayer may claim following certification by the authority must be established by the department of revenue under Section 43-1074.01, subsection A, paragraph 1, subdivision (c) or section 43-1168, subsection A, paragraph 1, subdivision (d). The authority shall process and evaluate applications for certification under this section through a competitive process pursuant to subsection C of this section that may include third-party peer review. An application for certification must include:

1. The taxpayer’s name, address and taxpayer identification number and a telephone number and e-mail address of a person responsible for the application.

2. A general description of the taxpayer’s business and the research activities contemplated by the taxpayer.

3. The amount of the additional income tax credit the taxpayer will be requesting from the department of revenue.

4. Any other information required by the authority.

C. The authority shall establish the time and manner of the competitive process used in issuing certifications. In determining which applications must be issued certifications, the authority or its designee shall evaluate among all applicants for certification of basic research payments, the relative impact of the research activities involving payments to a university from the standpoint of furthering one or more of the following considerations:

1. Expanding cluster industries. For purposes of this paragraph, "cluster industries" means concentrations of firms across several industries that share common economic foundation needs.

2. Diversifying and strengthening this state’s economy.

3. Advancing technological commercialization.

4. Enhancing long-term quality job creation.

5. Aligning research with university strategic plans.

D. Following review of each application pursuant to subsection C of this section, the authority shall either:

1. Issue the applicant a letter certifying the basic research payments.

2. Notify the applicant of the denial of the certification with an explanation of the basis for the denial.

E. The authority shall adopt rules and publish and prescribe forms and procedures as necessary to effectuate the purposes of this section.

F. Any information gathered from a business for the purposes of this section is confidential and may not be disclosed to the public except that the information must be transmitted to the department of revenue.