Pub. 3 2021 Issue 6

N O V E M B E R / D E C E M B E R 2 0 2 1 12 nebraska cpas S TAT E TA X B R I E F I N G THE CRITICAL LEGAL CRITERIA FOR OPTIMIZING NEBRASKA’S INCENTIVES BY NICK NIEMANN AND MATT OTTEMANN, MCGRATH NORTH In our previous article, we reviewed the CPA’s key role in Nebraska business expansions. As part of that review, we highlighted a number of Nebraska’s incentive programs that companies should consider in connection with their business expansion decisions. In deciding how best to obtain and optimize Nebraska’s various incentives, we’ve identified several cr it ical legal cr iter ia that should be addressed by the business expansion team up front in the project planning phase. Business expansion incent ive results, including the speed of the incentive approval and payment/refund process, are generally much better when the team works together in advance to address these criteria. The critical legal criteria include the following: Application Issues and Project Design • Which Program: Several Nebraska business expansion (tax and nontax) incentives are available. Before beginning an expansion, these should be reviewed to determine which may fit and be of overall value. • Project Entities: The company unitary group needs to meet the eligible entity statutory requirements. • Qualified Business: The project must be proven to be for one or more “qual i f ied business” activities. • Project Activities Description: This needs to be carefully addressed to achieve eligibility and to address intended exclusions. • Commi tment : The company needs to carefully decide on or understand the level of new employment and i nve s tment impacting the tier or level of benefits. This will impact the company’s maximum incentives and future options. • Employees: Base year employee count and statutory compensation levels need to be understood up front. • CoordinateWithState&Local“Entitlements”: Project parameters and timing need to be