Nebraska Department of Revenue Publishes Guidance on Historic Tax Credits
The Nebraska Department of Revenue (the “Department”) recently issued guidance on calculating eligible expenditures for earning state historic tax credits under the Nebraska Job Creation and Mainstreet Revitalization Act (the “Act”). The Act provides $15 million in tax credits annually for applicants rehabilitating historically significant property to offset Nebraska income tax, the premium tax on insurance companies, or the franchise tax on financial institutions.
The guidance provides an overview on how to request credits and which expenditures are eligible for credits. The guidance confirms the statutory limitation on expenditures incurred within six months prior to the submission date of the Part 2 application unless they are for architectural fees, accounting and legal fees, or costs related to the protection of the real property from deterioration.
In addition, the Department published instructions on how to request issuance of state historic tax credits and guidance on the Department’s audit of eligible expenditures, how to protest any decision of the Department, and how to transfer or sell credits once issued.
The Nebraska Legislature also continues to debate proposals to suspend or eliminate the historic tax credit to offset revenue reductions associated with several tax reform proposals and to lessen the projected budget shortfall. We encourage you to contact your state senator and urge them to maintain the Act.
Please contact us if you have any questions about the guidance or legislative session. Thank you.