2006 Nebraska Revised Statutes - § 77-5803 — Research tax credit; amount.

Section 77-5803
Research tax credit; amount.

(1) Any business firm which makes expenditures in research and experimental activities as defined in section 174 of the Internal Revenue Code of 1986, as amended, in this state shall be allowed a research tax credit as provided in the Nebraska Advantage Research and Development Act. The credit amount shall equal three percent of the amount expended in research and experimental activities by the business firm in the tax year in this state in excess of the base amount. The base amount is the average amount expended in research and experimental activities by the business firm in this state in the two tax years immediately preceding the first tax year that the credit is claimed. The credit shall be allowed for the first tax year it is claimed and for the four tax years immediately following.

(2) The amount expended in research and experimental activities in this state in any tax year may be determined either by satisfactory proof of purchase or by apportioning the amount deducted on the federal income tax return to the state based on the average of the property factor as determined in section 77-2734.12 and the payroll factor as determined in section 77-2734.13.

Source:

Laws 2005, LB 312, § 61

~Revised Statutes Supplement, 2006