Alternate wage benefit credit; calculation; use

(1) The policy of the state in adopting the Quality Jobs Act as stated in section 77-4902 is to encourage new businesses to relocate to and existing businesses to expand in Nebraska and to provide appropriate inducements to encourage them to do so. Depending on the nature of the company and its employees, the state recognizes the inducements contained in the act may be more appropriate and administratively more convenient and efficient for the state, the company, and the employees, if the wage benefit credit is charged against the company's income tax rather than individually computed and used against each employee's income tax. Therefor if the company uses the wage benefit credit for company training programs, employee benefit programs, educational institution training programs, or company workplace safety programs, or any combination thereof, as determined by the company as otherwise provided for in the act and if the board has approved the project application, then in lieu of the wage benefit credit allowed in section 77-4927 , the company shall be allowed a wage benefit credit to be determined, used, and calculated as provided in this section.

(2) If the company has entered into an agreement with the state pursuant to section 77-4928 and if that agreement provides that this section shall apply in lieu of section 77-4927 , then the company shall receive the wage benefit credit in the manner provided in this section.

(3) The wage benefit credit shall be paid or applied by the company for company training programs, employee benefit programs, educational institution training programs, or company workplace safety programs, or any combination thereof, as determined by the company. Nothing in this section shall be construed to limit the right of an employee or employees subject to a collective-bargaining agreement to negotiate relative to such programs.

(4) The wage benefit credit shall be an amount equal to the percentage specified in subsection (5) of this section multiplied by the amount by which the total compensation paid during each project year to employees of the company while employed at the project exceeds the average compensation paid at the project multiplied by the number of equivalent base-year employees. For purposes of computation of the credit, average compensation means the total compensation paid during each project year divided by the total number of equivalent employees at the project.

(5) The percentage used to determine the wage benefit credit shall be: If the average compensation for the project year is over But not over Then the credit percentage shall be $0 $20,000 0% $20,000 $30,000 3% $30,000 $40,000 4% $40,000 5%

(6) The wage benefit credit shall be allowed for each project year.

(7) The wage benefit credit shall be established by filing the forms required by the Tax Commissioner with the income tax return for the year. The credit may be used to reduce the taxpayer's Nebraska income tax liability. The credits shall be applied in the order in which they were first allowed. The credit may be carried over until fully utilized, except that the credit may not be carried over more than eight years after the end of the entitlement period. If a credit is subsequently recaptured under section 77-4929 , the credit shall be treated as if it had never been allowed.

(8) The wage benefit credit shall not be transferable.