LB272 LB272
2019 2019
LEGISLATURE OF NEBRASKA
ONE HUNDRED SIXTH LEGISLATURE
FIRST SESSION
LEGISLATIVE BILL 272
Introduced by Morfeld, 46.
Read first time January 15, 2019
Committee: Revenue
1 A BILL FOR AN ACT relating to revenue and taxation; to amend sections
2 77-2715.07, 77-2717, and 77-2734.03, Reissue Revised Statutes of
3 Nebraska; to adopt the Apprenticeship Training Program Tax Credit
4 Act; to harmonize provisions; and to repeal the original sections.
5 Be it enacted by the people of the State of Nebraska,
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1 Section 1. Sections 1 to 6 of this act shall be known and may be
2 cited as the Apprenticeship Training Program Tax Credit Act.
3 Sec. 2. For purposes of the Apprenticeship Training Program Tax
4 Credit Act:
5 (1) Department means the Department of Revenue; and
6 (2) Qualified apprenticeship training program means a program that:
7 (a) Is administered pursuant to 29 U.S.C. 50;
8 (b) Consists of at least one thousand two hundred hours but not more
9 than eight thousand hours of on-the-job apprenticeship training;
10 (c) Is certified in accordance with regulations adopted by the
11 Office of Apprenticeship of the United States Department of Labor; and
12 (d) Is administered by trustees.
13 Sec. 3. (1) From November 1 to December 31 of each year, a taxpayer
14 who plans to employ one or more apprentices as part of a qualified
15 apprenticeship training program during the following calendar year may
16 apply to the department to receive tax credits under the Apprenticeship
17 Training Program Tax Credit Act.
18 (2) The tax credit shall be in an amount equal to one dollar
19 multiplied by the total number of hours expected to be worked during the
20 following calendar year by apprentices employed by the taxpayer as part
21 of a qualified apprenticeship training program, except that the amount of
22 the credit allowed in any year with respect to any individual apprentice
23 shall not exceed two thousand dollars or fifty percent of the total wages
24 expected to be paid to such apprentice during the following calendar
25 year, whichever is less.
26 (3) The credit shall be a nonrefundable credit against the income
27 tax imposed by the Nebraska Revenue Act of 1967. The credit shall be
28 available for taxable years beginning or deemed to begin on or after
29 January 1, 2020, under the Internal Revenue Code of 1986, as amended.
30 (4) Applications for the credit shall be submitted on a form
31 prescribed by the department and shall include the following information:
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1 (a) The name and address of the taxpayer;
2 (b) The total number of apprentices that will be employed by the
3 taxpayer during the following calendar year;
4 (c) The number of hours expected to be worked by each apprentice
5 during the following calendar year;
6 (d) The total wages expected to be paid to each apprentice during
7 the following calendar year; and
8 (e) Any other documentation required by the department.
9 Sec. 4. (1) If the department determines that an application is
10 complete and that the taxpayer qualifies for tax credits, the department
11 shall approve the application within the limits set forth in this section
12 and shall certify the amount of tax credits approved to the taxpayer.
13 (2) The department shall consider applications in the order in which
14 they are received and may approve up to two million five hundred thousand
15 dollars in tax credits in any calendar year.
16 Sec. 5. (1) A taxpayer shall claim the tax credit by attaching the
17 tax credit certification received from the department under section 4 of
18 this act to the taxpayer’s tax return.
19 (2) Any tax credit claimed but not used in a taxable year may be
20 carried forward to subsequent taxable years until fully utilized.
21 Sec. 6. The department may adopt and promulgate rules and
22 regulations to carry out the Apprenticeship Training Program Tax Credit
23 Act.
24 Sec. 7. Section 77-2715.07, Reissue Revised Statutes of Nebraska, is
25 amended to read:
26 77-2715.07 (1) There shall be allowed to qualified resident
27 individuals as a nonrefundable credit against the income tax imposed by
28 the Nebraska Revenue Act of 1967:
29 (a) A credit equal to the federal credit allowed under section 22 of
30 the Internal Revenue Code; and
31 (b) A credit for taxes paid to another state as provided in section
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1 77-2730.
2 (2) There shall be allowed to qualified resident individuals against
3 the income tax imposed by the Nebraska Revenue Act of 1967:
4 (a) For returns filed reporting federal adjusted gross incomes of
5 greater than twenty-nine thousand dollars, a nonrefundable credit equal
6 to twenty-five percent of the federal credit allowed under section 21 of
7 the Internal Revenue Code of 1986, as amended, except that for taxable
8 years beginning or deemed to begin on or after January 1, 2015, such
9 nonrefundable credit shall be allowed only if the individual would have
10 received the federal credit allowed under section 21 of the code after
11 adding back in any carryforward of a net operating loss that was deducted
12 pursuant to such section in determining eligibility for the federal
13 credit;
14 (b) For returns filed reporting federal adjusted gross income of
15 twenty-nine thousand dollars or less, a refundable credit equal to a
16 percentage of the federal credit allowable under section 21 of the
17 Internal Revenue Code of 1986, as amended, whether or not the federal
18 credit was limited by the federal tax liability. The percentage of the
19 federal credit shall be one hundred percent for incomes not greater than
20 twenty-two thousand dollars, and the percentage shall be reduced by ten
21 percent for each one thousand dollars, or fraction thereof, by which the
22 reported federal adjusted gross income exceeds twenty-two thousand
23 dollars, except that for taxable years beginning or deemed to begin on or
24 after January 1, 2015, such refundable credit shall be allowed only if
25 the individual would have received the federal credit allowed under
26 section 21 of the code after adding back in any carryforward of a net
27 operating loss that was deducted pursuant to such section in determining
28 eligibility for the federal credit;
29 (c) A refundable credit as provided in section 77-5209.01 for
30 individuals who qualify for an income tax credit as a qualified beginning
31 farmer or livestock producer under the Beginning Farmer Tax Credit Act
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1 for all taxable years beginning or deemed to begin on or after January 1,
2 2006, under the Internal Revenue Code of 1986, as amended;
3 (d) A refundable credit for individuals who qualify for an income
4 tax credit under the Angel Investment Tax Credit Act, the Nebraska
5 Advantage Microenterprise Tax Credit Act, the Nebraska Advantage Research
6 and Development Act, or the Volunteer Emergency Responders Incentive Act;
7 and
8 (e) A refundable credit equal to ten percent of the federal credit
9 allowed under section 32 of the Internal Revenue Code of 1986, as
10 amended, except that for taxable years beginning or deemed to begin on or
11 after January 1, 2015, such refundable credit shall be allowed only if
12 the individual would have received the federal credit allowed under
13 section 32 of the code after adding back in any carryforward of a net
14 operating loss that was deducted pursuant to such section in determining
15 eligibility for the federal credit.
16 (3) There shall be allowed to all individuals as a nonrefundable
17 credit against the income tax imposed by the Nebraska Revenue Act of
18 1967:
19 (a) A credit for personal exemptions allowed under section
20 77-2716.01;
21 (b) A credit for contributions to certified community betterment
22 programs as provided in the Community Development Assistance Act. Each
23 partner, each shareholder of an electing subchapter S corporation, each
24 beneficiary of an estate or trust, or each member of a limited liability
25 company shall report his or her share of the credit in the same manner
26 and proportion as he or she reports the partnership, subchapter S
27 corporation, estate, trust, or limited liability company income;
28 (c) A credit for investment in a biodiesel facility as provided in
29 section 77-27,236;
30 (d) A credit as provided in the New Markets Job Growth Investment
31 Act;
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1 (e) A credit as provided in the Nebraska Job Creation and Mainstreet
2 Revitalization Act;
3 (f) A credit to employers as provided in section 77-27,238; and
4 (g) A credit as provided in the Affordable Housing Tax Credit Act;
5 and .
6 (h) A credit as provided in the Apprenticeship Training Program Tax
7 Credit Act.
8 (4) There shall be allowed as a credit against the income tax
9 imposed by the Nebraska Revenue Act of 1967:
10 (a) A credit to all resident estates and trusts for taxes paid to
11 another state as provided in section 77-2730;
12 (b) A credit to all estates and trusts for contributions to
13 certified community betterment programs as provided in the Community
14 Development Assistance Act; and
15 (c) A refundable credit for individuals who qualify for an income
16 tax credit as an owner of agricultural assets under the Beginning Farmer
17 Tax Credit Act for all taxable years beginning or deemed to begin on or
18 after January 1, 2009, under the Internal Revenue Code of 1986, as
19 amended. The credit allowed for each partner, shareholder, member, or
20 beneficiary of a partnership, corporation, limited liability company, or
21 estate or trust qualifying for an income tax credit as an owner of
22 agricultural assets under the Beginning Farmer Tax Credit Act shall be
23 equal to the partner's, shareholder's, member's, or beneficiary's portion
24 of the amount of tax credit distributed pursuant to subsection (4) of
25 section 77-5211.
26 (5)(a) For all taxable years beginning on or after January 1, 2007,
27 and before January 1, 2009, under the Internal Revenue Code of 1986, as
28 amended, there shall be allowed to each partner, shareholder, member, or
29 beneficiary of a partnership, subchapter S corporation, limited liability
30 company, or estate or trust a nonrefundable credit against the income tax
31 imposed by the Nebraska Revenue Act of 1967 equal to fifty percent of the
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1 partner's, shareholder's, member's, or beneficiary's portion of the
2 amount of franchise tax paid to the state under sections 77-3801 to
3 77-3807 by a financial institution.
4 (b) For all taxable years beginning on or after January 1, 2009,
5 under the Internal Revenue Code of 1986, as amended, there shall be
6 allowed to each partner, shareholder, member, or beneficiary of a
7 partnership, subchapter S corporation, limited liability company, or
8 estate or trust a nonrefundable credit against the income tax imposed by
9 the Nebraska Revenue Act of 1967 equal to the partner's, shareholder's,
10 member's, or beneficiary's portion of the amount of franchise tax paid to
11 the state under sections 77-3801 to 77-3807 by a financial institution.
12 (c) Each partner, shareholder, member, or beneficiary shall report
13 his or her share of the credit in the same manner and proportion as he or
14 she reports the partnership, subchapter S corporation, limited liability
15 company, or estate or trust income. If any partner, shareholder, member,
16 or beneficiary cannot fully utilize the credit for that year, the credit
17 may not be carried forward or back.
18 (6) There shall be allowed to all individuals nonrefundable credits
19 against the income tax imposed by the Nebraska Revenue Act of 1967 as
20 provided in section 77-3604 and refundable credits against the income tax
21 imposed by the Nebraska Revenue Act of 1967 as provided in section
22 77-3605.
23 Sec. 8. Section 77-2717, Reissue Revised Statutes of Nebraska, is
24 amended to read:
25 77-2717 (1)(a)(i) For taxable years beginning or deemed to begin
26 before January 1, 2014, the tax imposed on all resident estates and
27 trusts shall be a percentage of the federal taxable income of such
28 estates and trusts as modified in section 77-2716, plus a percentage of
29 the federal alternative minimum tax and the federal tax on premature or
30 lump-sum distributions from qualified retirement plans. The additional
31 taxes shall be recomputed by (A) substituting Nebraska taxable income for
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1 federal taxable income, (B) calculating what the federal alternative
2 minimum tax would be on Nebraska taxable income and adjusting such
3 calculations for any items which are reflected differently in the
4 determination of federal taxable income, and (C) applying Nebraska rates
5 to the result. The federal credit for prior year minimum tax, after the
6 recomputations required by the Nebraska Revenue Act of 1967, and the
7 credits provided in the Nebraska Advantage Microenterprise Tax Credit Act
8 and the Nebraska Advantage Research and Development Act shall be allowed
9 as a reduction in the income tax due. A refundable income tax credit
10 shall be allowed for all resident estates and trusts under the Angel
11 Investment Tax Credit Act, the Nebraska Advantage Microenterprise Tax
12 Credit Act, and the Nebraska Advantage Research and Development Act. A
13 nonrefundable income tax credit shall be allowed for all resident estates
14 and trusts as provided in the New Markets Job Growth Investment Act.
15 (ii) For taxable years beginning or deemed to begin on or after
16 January 1, 2014, the tax imposed on all resident estates and trusts shall
17 be a percentage of the federal taxable income of such estates and trusts
18 as modified in section 77-2716, plus a percentage of the federal tax on
19 premature or lump-sum distributions from qualified retirement plans. The
20 additional taxes shall be recomputed by substituting Nebraska taxable
21 income for federal taxable income and applying Nebraska rates to the
22 result. The credits provided in the Nebraska Advantage Microenterprise
23 Tax Credit Act and the Nebraska Advantage Research and Development Act
24 shall be allowed as a reduction in the income tax due. A refundable
25 income tax credit shall be allowed for all resident estates and trusts
26 under the Angel Investment Tax Credit Act, the Nebraska Advantage
27 Microenterprise Tax Credit Act, and the Nebraska Advantage Research and
28 Development Act. A nonrefundable income tax credit shall be allowed for
29 all resident estates and trusts as provided in the Nebraska Job Creation
30 and Mainstreet Revitalization Act, the New Markets Job Growth Investment
31 Act, the School Readiness Tax Credit Act, the Affordable Housing Tax
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