The bill amends section 77-5701 of the Reissue Revised Statutes of Nebraska to enhance the Nebraska Advantage Act by introducing provisions for the recalculation of base-year employees for taxpayers involved in tier 6 projects. Specifically, if a taxpayer who has met the required employment and investment levels sells or transfers part of their business operations, the Department of Revenue is mandated to recalculate the taxpayer's base-year employees. This recalculation involves subtracting the number of equivalent employees from the sold or transferred operations from the taxpayer's previously calculated base-year employees, as reported on their last Form 312N prior to the sale or transfer.

Additionally, the bill outlines exceptions to this recalculation process, stating that it will not apply if the sold or transferred business operations cease within 24 months or if the primary purpose of the sale was to close a location. It also clarifies that any credits or incentives generated before the sale or transfer will remain unchanged and specifies that these new provisions apply only to agreements made after December 31, 2016. The original section 77-5701 is repealed as part of this legislative update.

Statutes affected:
Introduced: 77-5701
Final Reading: 77-5701
Slip Law: 77-5701