LB180 LB180
2023 2023
LEGISLATURE OF NEBRASKA
ONE HUNDRED EIGHTH LEGISLATURE
FIRST SESSION
LEGISLATIVE BILL 180
Introduced by Brandt, 32; Bostar, 29; Dover, 19; Halloran, 33; Ibach, 44;
Jacobson, 42; Lippincott, 34; Murman, 38.
Read first time January 09, 2023
Committee: Revenue
1 A BILL FOR AN ACT relating to revenue and taxation; to amend sections
2 77-908, 77-2715.07, 77-2717, 77-2734.03, and 77-3806, Revised
3 Statutes Cumulative Supplement, 2022; to adopt the Nebraska
4 Biodiesel Tax Credit Act; to harmonize provisions; and to repeal the
5 original sections.
6 Be it enacted by the people of the State of Nebraska,
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1 Section 1. Sections 1 to 8 of this act shall be known and may be
2 cited as the Nebraska Biodiesel Tax Credit Act.
3 Sec. 2. For purposes of the Nebraska Biodiesel Tax Credit Act:
4 (1) Biodiesel means mono-alkyl esters of long chain fatty acids
5 derived from vegetable oils or animal fats which conform to American
6 Society for Testing and Materials D6751 specifications for use in diesel
7 engines. Biodiesel refers to the pure fuel with less than one percent
8 blended with diesel fuel;
9 (2) Department means the Department of Revenue;
10 (3) Motor fuel pump means a meter or similar commercial weighing and
11 measuring device used to measure and dispense motor fuel originating from
12 a motor fuel storage tank;
13 (4) Retail dealer means a person engaged in the business of storing
14 and dispensing motor fuel from a motor fuel pump for sale on a retail
15 basis;
16 (5) Retail motor fuel site means a geographic location in this state
17 where a retail dealer sells and dispenses motor fuel from a motor fuel
18 pump on a retail basis, including a permanent or mobile location; and
19 (6) Taxpayer means any natural person or any limited liability
20 company, partnership, private domestic or private foreign corporation, or
21 domestic or foreign nonprofit corporation certified pursuant to section
22 501(c)(3) of the Internal Revenue Code of 1986, as amended.
23 Sec. 3. (1) Any taxpayer who is a retail dealer and who sold and
24 dispensed biodiesel on a retail basis during the prior calendar year
25 through a motor fuel pump located at the taxpayer's retail motor fuel
26 site shall be eligible to receive tax credits under the Nebraska
27 Biodiesel Tax Credit Act.
28 (2) The tax credit shall be in an amount equal to fourteen cents
29 multiplied by the total number of gallons of biodiesel sold by the
30 taxpayer on a retail basis during the prior calendar year through a motor
31 fuel pump located at the taxpayer's retail motor fuel site.
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1 (3) The tax credit shall be a refundable credit that may be used
2 against any income tax imposed by the Nebraska Revenue Act of 1967 or any
3 tax imposed pursuant to sections 77-907 to 77-918 or 77-3801 to 77-3807.
4 (4) Tax credits allowed under this section may be claimed for
5 taxable years beginning or deemed to begin on or after January 1, 2024,
6 under the Internal Revenue Code of 1986, as amended.
7 (5) To receive tax credits, a taxpayer shall submit an application
8 to the department on a form prescribed by the department. Applications
9 may be submitted from January 1 to April 15 of each calendar year
10 beginning in 2024. The application shall include the following
11 information:
12 (a) The name and address of the taxpayer;
13 (b) The total number of gallons of biodiesel sold by the taxpayer on
14 a retail basis during the prior calendar year through a motor fuel pump
15 located at the taxpayer's retail motor fuel site; and
16 (c) Any other documentation required by the department.
17 Sec. 4. (1) If the department determines that an application is
18 complete and that the taxpayer qualifies for tax credits, the department
19 shall approve the application within the limits set forth in this section
20 and shall certify the amount of tax credits approved to the taxpayer.
21 (2) The department may approve up to five million dollars in tax
22 credits in any calendar year. If the total amount of tax credits
23 requested in any calendar year exceeds such limit, the department shall
24 allocate the tax credits proportionally based upon amounts requested.
25 Sec. 5. (1) A taxpayer shall claim the tax credit by attaching the
26 tax credit certification received from the department under section 4 of
27 this act to the taxpayer's tax return.
28 (2) Any credit in excess of the taxpayer's tax liability shall be
29 refunded to the taxpayer. In lieu of claiming a refund, the taxpayer may
30 elect to have the excess carried forward to subsequent taxable years. A
31 taxpayer may carry forward the excess tax credits until fully utilized.
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1 Sec. 6. Any tax credit allowable to a partnership, a limited
2 liability company, a subchapter S corporation, or an estate or trust may
3 be distributed to the partners, limited liability company members,
4 shareholders, or beneficiaries in the same manner as income is
5 distributed.
6 Sec. 7. There shall be no new applications filed under the Nebraska
7 Biodiesel Tax Credit Act after December 31, 2028. All applications and
8 all tax credits pending or approved before such date shall continue in
9 full force and effect.
10 Sec. 8. The department may adopt and promulgate rules and
11 regulations to carry out the Nebraska Biodiesel Tax Credit Act.
12 Sec. 9. Section 77-908, Revised Statutes Cumulative Supplement,
13 2022, is amended to read:
14 77-908 Every insurance company organized under the stock, mutual,
15 assessment, or reciprocal plan, except fraternal benefit societies, which
16 is transacting business in this state shall, on or before March 1 of each
17 year, pay a tax to the director of one percent of the gross amount of
18 direct writing premiums received by it during the preceding calendar year
19 for business done in this state, except that (1) for group sickness and
20 accident insurance the rate of such tax shall be five-tenths of one
21 percent and (2) for property and casualty insurance, excluding individual
22 sickness and accident insurance, the rate of such tax shall be one
23 percent. A captive insurer authorized under the Captive Insurers Act that
24 is transacting business in this state shall, on or before March 1 of each
25 year, pay to the director a tax of one-fourth of one percent of the gross
26 amount of direct writing premiums received by such insurer during the
27 preceding calendar year for business transacted in the state. The taxable
28 premiums shall include premiums paid on the lives of persons residing in
29 this state and premiums paid for risks located in this state whether the
30 insurance was written in this state or not, including that portion of a
31 group premium paid which represents the premium for insurance on Nebraska
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1 residents or risks located in Nebraska included within the group when the
2 number of lives in the group exceeds five hundred. The tax shall also
3 apply to premiums received by domestic companies for insurance written on
4 individuals residing outside this state or risks located outside this
5 state if no comparable tax is paid by the direct writing domestic company
6 to any other appropriate taxing authority. Companies whose scheme of
7 operation contemplates the return of a portion of premiums to
8 policyholders, without such policyholders being claimants under the terms
9 of their policies, may deduct such return premiums or dividends from
10 their gross premiums for the purpose of tax calculations. Any such
11 insurance company shall receive a credit on the tax imposed as provided
12 in the Community Development Assistance Act, the Nebraska Job Creation
13 and Mainstreet Revitalization Act, the New Markets Job Growth Investment
14 Act, the Nebraska Biodiesel Tax Credit Act, the Nebraska Higher Blend Tax
15 Credit Act, and the Affordable Housing Tax Credit Act.
16 Sec. 10. Section 77-2715.07, Revised Statutes Cumulative Supplement,
17 2022, is amended to read:
18 77-2715.07 (1) There shall be allowed to qualified resident
19 individuals as a nonrefundable credit against the income tax imposed by
20 the Nebraska Revenue Act of 1967:
21 (a) A credit equal to the federal credit allowed under section 22 of
22 the Internal Revenue Code; and
23 (b) A credit for taxes paid to another state as provided in section
24 77-2730.
25 (2) There shall be allowed to qualified resident individuals against
26 the income tax imposed by the Nebraska Revenue Act of 1967:
27 (a) For returns filed reporting federal adjusted gross incomes of
28 greater than twenty-nine thousand dollars, a nonrefundable credit equal
29 to twenty-five percent of the federal credit allowed under section 21 of
30 the Internal Revenue Code of 1986, as amended, except that for taxable
31 years beginning or deemed to begin on or after January 1, 2015, such
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1 nonrefundable credit shall be allowed only if the individual would have
2 received the federal credit allowed under section 21 of the code after
3 adding back in any carryforward of a net operating loss that was deducted
4 pursuant to such section in determining eligibility for the federal
5 credit;
6 (b) For returns filed reporting federal adjusted gross income of
7 twenty-nine thousand dollars or less, a refundable credit equal to a
8 percentage of the federal credit allowable under section 21 of the
9 Internal Revenue Code of 1986, as amended, whether or not the federal
10 credit was limited by the federal tax liability. The percentage of the
11 federal credit shall be one hundred percent for incomes not greater than
12 twenty-two thousand dollars, and the percentage shall be reduced by ten
13 percent for each one thousand dollars, or fraction thereof, by which the
14 reported federal adjusted gross income exceeds twenty-two thousand
15 dollars, except that for taxable years beginning or deemed to begin on or
16 after January 1, 2015, such refundable credit shall be allowed only if
17 the individual would have received the federal credit allowed under
18 section 21 of the code after adding back in any carryforward of a net
19 operating loss that was deducted pursuant to such section in determining
20 eligibility for the federal credit;
21 (c) A refundable credit as provided in section 77-5209.01 for
22 individuals who qualify for an income tax credit as a qualified beginning
23 farmer or livestock producer under the Beginning Farmer Tax Credit Act
24 for all taxable years beginning or deemed to begin on or after January 1,
25 2006, under the Internal Revenue Code of 1986, as amended;
26 (d) A refundable credit for individuals who qualify for an income
27 tax credit under the Angel Investment Tax Credit Act, the Nebraska
28 Advantage Microenterprise Tax Credit Act, the Nebraska Advantage Research
29 and Development Act, or the Volunteer Emergency Responders Incentive Act;
30 and
31 (e) A refundable credit equal to ten percent of the federal credit
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1 allowed under section 32 of the Internal Revenue Code of 1986, as
2 amended, except that for taxable years beginning or deemed to begin on or
3 after January 1, 2015, such refundable credit shall be allowed only if
4 the individual would have received the federal credit allowed under
5 section 32 of the code after adding back in any carryforward of a net
6 operating loss that was deducted pursuant to such section in determining
7 eligibility for the federal credit.
8 (3) There shall be allowed to all individuals as a nonrefundable
9 credit against the income tax imposed by the Nebraska Revenue Act of
10 1967:
11 (a) A credit for personal exemptions allowed under section
12 77-2716.01;
13 (b) A credit for contributions to certified community betterment
14 programs as provided in the Community Development Assistance Act. Each
15 partner, each shareholder of an electing subchapter S corporation, each
16 beneficiary of an estate or trust, or each member of a limited liability
17 company shall report his or her share of the credit in the same manner
18 and proportion as he or she reports the partnership, subchapter S
19 corporation, estate, trust, or limited liability company income;
20 (c) A credit for investment in a biodiesel facility as provided in
21 section 77-27,236;
22 (d) A credit as provided in the New Markets Job Growth Investment
23 Act;
24 (e) A credit as provided in the Nebraska Job Creation and Mainstreet
25 Revitalization Act;
26 (f) A credit to employers as provided in sections 77-27,238 and
27 77-27,240; and
28 (g) A credit as provided in the Affordable Housing Tax Credit Act.
29 (4) There shall be allowed as a credit against the income tax
30 imposed by the Nebraska Revenue Act of 1967:
31 (a) A credit to all resident estates and trusts for taxes paid to
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1 another state as provided in section 77-2730;
2 (b) A credit to all estates and trusts for contributions to
3 certified community betterment programs as provided in the Community
4 Development Assistance Act; and
5 (c) A refundable credit for individuals who qualify for an income
6 tax credit as an owner of agricultural assets under the Beginning Farmer
7 Tax Credit Act for all taxable years beginning or deemed to begin on or
8 after January 1, 2009, under the Internal Revenue Code of 1986, as
9 amended. The credit allowed for each partner, shareholder, member, or
10 beneficiary of a partnership, corporation, limited liability company, or
11 estate or trust qualifying for an income tax credit as an owner of
12 agricultural assets under the Beginning Farmer Tax Credit Act shall be
13 equal to the partner's, shareholder's, member's, or beneficiary's portion
14 of the amount of tax credit distributed pursuant to subsection (6) of
15 section 77-5211.
16 (5)(a) For all taxable years beginning on or after January 1, 2007,
17 and before January 1, 2009, under the Internal Revenue Code of 1986, as
18 amended, there shall be allowed to each partner, shareholder, member, or
19 beneficiary of a partnership, subchapter S corporation, limited liability
20 company, or estate or trust a nonrefundable credit against the income tax
21 imposed by the Nebraska Revenue Act of 1967 equal to fifty percent of the
22 partner's, shareholder's, member's, or beneficiary's portion of the
23 amount of franchise tax paid to the state under sections 77-3801 to
24 77-3807 by a financial institution.
25 (b) For all taxable years beginning on or after January 1, 2009,
26 under the Internal Revenue Code of 1986, as amended, there shall be
27 allowed to each partner, shareholder, member, or beneficiary of a
28 partnersh