Nebraska Statutes 77-4927.01. Alternate wage benefit credit; calculation; use
(1) The policy of the state in adopting the Quality Jobs Act as stated in section 77-4902 is to encourage new businesses to relocate to and existing businesses to expand in Nebraska and to provide appropriate inducements to encourage them to do so. Depending on the nature of the company and its employees, the state recognizes the inducements contained in the act may be more appropriate and administratively more convenient and efficient for the state, the company, and the employees, if the wage benefit credit is charged against the company’s income tax rather than individually computed and used against each employee‘s income tax. Therefor if the company uses the wage benefit credit for company training programs, employee benefit programs, educational institution training programs, or company workplace safety programs, or any combination thereof, as determined by the company as otherwise provided for in the act and if the board has approved the project application, then in lieu of the wage benefit credit allowed in section 77-4927, the company shall be allowed a wage benefit credit to be determined, used, and calculated as provided in this section.
Terms Used In Nebraska Statutes 77-4927.01
- Agreement: means the agreement between the company and the state. See Nebraska Statutes 77-4905
- Board: means the Governor, the State Treasurer, and the chairperson of the Nebraska Investment Council. See Nebraska Statutes 77-4908
- Company: means any person subject to the sales and use taxes and either the income tax imposed by the Nebraska Revenue Act of 1967 or the franchise tax under sections Nebraska Statutes 77-4909
- Company shall: include any corporation, partnership, limited liability company, joint-stock company, joint venture, or association. See Nebraska Statutes 49-801
- Compensation: means the wages and other payments subject to withholding for federal income tax purposes. See Nebraska Statutes 77-4912
- Employee: means a person employed at the project. See Nebraska Statutes 77-4914
- Equivalent employees: means the number of employees computed by dividing the total hours paid in a year by the product of forty times the number of weeks in a year. See Nebraska Statutes 77-4917
- Project: means a project described in the Quality Jobs Act and approved by the board. See Nebraska Statutes 77-4920
- Project year: means any year or portion of a year during the entitlement period of the project. See Nebraska Statutes 77-4921
- State: when applied to different states of the United States shall be construed to extend to and include the District of Columbia and the several territories organized by Congress. See Nebraska Statutes 49-801
- Wage benefit credit: means the credit described in the Quality Jobs Act. See Nebraska Statutes 77-4925
- Year: means the taxable year of the company. See Nebraska Statutes 77-4926
(2) If the company has entered into an agreement with the state pursuant to section 77-4928 and if that agreement provides that this section shall apply in lieu of section 77-4927, then the company shall receive the wage benefit credit in the manner provided in this section.
(3) The wage benefit credit shall be paid or applied by the company for company training programs, employee benefit programs, educational institution training programs, or company workplace safety programs, or any combination thereof, as determined by the company. Nothing in this section shall be construed to limit the right of an employee or employees subject to a collective-bargaining agreement to negotiate relative to such programs.
(4) The wage benefit credit shall be an amount equal to the percentage specified in subsection (5) of this section multiplied by the amount by which the total compensation paid during each project year to employees of the company while employed at the project exceeds the average compensation paid at the project multiplied by the number of equivalent base-year employees. For purposes of computation of the credit, average compensation means the total compensation paid during each project year divided by the total number of equivalent employees at the project.
(5) The percentage used to determine the wage benefit credit shall be:
| If the average compensation for the project year is over | But not over | Then the credit percentage shall be |
| $0 | $20,000 | 0% |
| $20,000 | $30,000 | 3% |
| $30,000 | $40,000 | 4% |
| $40,000 | 5% |