77-3,114.

Tax or other incentive programs; foreign adversarial company; ineligible; group of companies; how treated.

(1) For purposes of this section:

(a) Company means any corporation, partnership, association, organization, or other combination of persons;

(b) Foreign adversary means those countries listed in 15 C.F.R. 791.4, as such regulation existed on April 1, 2025;

(c) Foreign adversarial company means a company that:

(i) Is organized under the laws of a foreign adversary;

(ii) Has its principal place of business within a foreign adversary;

(iii) Is owned in whole or in part, operated, or controlled, directly or indirectly, by the government of a foreign adversary; or

(iv) Is a direct or indirect subsidiary of any company otherwise described in subdivisions (1)(c)(i), (ii), or (iii) of this section;

(d) Government of a foreign adversary means any person or group of persons exercising sovereign de facto or de jure political jurisdiction over any foreign adversary, or over any part of such country, and includes any subdivision of any such group and any group or agency to which such sovereign de facto or de jure authority or functions are directly or indirectly delegated. Such term shall include any faction or body of insurgents within a country assuming to exercise governmental authority whether such faction or body of insurgents has or has not been recognized by the United States;

(e) Group of companies means each person that is or would otherwise be a member of the same unitary group if incorporated;

(f) Indirect subsidiary of a company means a company owned by another company through one or more intermediary companies rather than through direct ownership; and

(g) Any other term in this section shall have the same meaning as used in the Nebraska Revenue Act of 1967.

(2) A foreign adversarial company shall be ineligible to receive any benefits under an incentive program of the State of Nebraska, including under:

(a) The Beginning Farmer Tax Credit Act;

(b) The ImagiNE Nebraska Act;

(c) The Nebraska Advantage Microenterprise Tax Credit Act;

(d) The Nebraska Advantage Research and Development Act;

(e) The Nebraska Advantage Rural Development Act;

(f) The Nebraska Job Creation and Mainstreet Revitalization Act;

(g) The New Markets Job Growth Investment Act;

(h) The Urban Redevelopment Act; and

(i) Any other tax or other incentive program created by legislative or executive action for the purpose of recruitment or retention of businesses in Nebraska.

(3) Any company that is not a foreign adversarial company shall only use benefits against income taxes of the members of the same group of companies that are not foreign adversarial companies. The tax liability attributable to members of the unitary group that are foreign adversarial companies shall be determined using the apportionment formula used to determine the amount of tax due.