Recapture of credits; written notice; procedure; amount

All or a portion of the credits received under the Nebraska Job Creation and Mainstreet Revitalization Act shall be subject to recapture by the department from the foreclosure of a lien which shall, as a condition of the department issuing credits under the act, be imposed on the historically significant real property as a lien having the priority of a tax lien pursuant to the filing of a notice of lien. Credits shall be subject to recapture from the person owning the historically significant real property on the date the officer determines the recapture event occurred if at any time during the five years after the historically significant real property is placed into service the officer determines the historically significant real property has been the subject of work not in substantial conformance with the approved application or the documents from which the credit was calculated. If the person owning the historically significant real property on the date the officer determines the recapture event occurred is a corporation having an election in effect under subchapter S of the Internal Revenue Code of 1986, as amended, a partnership, or a limited liability company, the liability of the shareholders, partners, or members for recapture shall be proportionate to their ownership in the applicable corporation, partnership, or limited liability company. Any action to recapture credits under this section may proceed only after a written notice is given to the person owning the historically significant real property on the date the officer determines the recapture event occurred and that person is allowed a six-month cure period. Thereafter, the credit shall be subject to recapture as follows:

(1) If the event causing recapture occurs during the first year after the historically significant real property is placed into service, one hundred percent of the credit may be recaptured;

(2) If the event causing recapture occurs during the second year after the historically significant real property is placed into service, eighty percent of the credit may be recaptured;

(3) If the event causing recapture occurs during the third year after the historically significant real property is placed into service, sixty percent of the credit may be recaptured;

(4) If the event causing recapture occurs during the fourth year after the historically significant real property is placed into service, forty percent of the credit may be recaptured; and

(5) If the event causing recapture occurs during the fifth year after the historically significant real property is placed into service, twenty percent of the credit may be recaptured.