43-1082. Credit for construction materials incorporated into qualifying facility; definitions

A. A credit is allowed against the tax imposed by this title for new construction materials incorporated into a qualifying facility located entirely within this state, construction of which is begun on or after January 1, 1994 and completed on or before December 31, 1999. The credit shall be computed as five per cent of the purchase price of the materials. The credit shall be claimed in the taxable year in which the qualified facility receives a certificate of occupancy.

B. Co-owners of a business, including partners in a partnership and shareholders of an S corporation, as defined in section 1361 of the internal revenue code, may each claim only the pro rata share of the credit allowed under this section based on the ownership interest, except that partners in a partnership and members in a limited liability company may allocate among themselves any credit for construction materials that are incorporated into a facility that is predominantly used for direct broadcast satellite television or data transmission services in any proportion stated in their partnership or operating agreement. The total of the credits allowed all such owners may not exceed the amount that would have been allowed a sole owner.

C. If the allowable tax credit exceeds the taxes otherwise due under this title on the claimant's income, or if there are no taxes due under this title, the taxpayer may carry the amount of the claim not used to offset the taxes under this title forward for not more than five taxable years' income tax liability.

D. The department shall prescribe a form to be filed in the year the credit arises by a partnership or limited liability company that allocates the credit among its partners or members. The form constitutes an election by the business as to the proportion of the credit allocable to each of the specific owners. The election is irrevocable.

E. For purposes of this section:

1. "Construction materials" means tangible personal property incorporated into and permanently affixed to the taxpayer's qualifying facility other than materials exempt from taxation pursuant to section 42-5061 or 42-5159, subsection B.

2. "Direct broadcast satellite television or data transmission services" means either:

(a) Receiving, converting, processing, storing or transmitting telecommunications information by a business that operates pursuant to 47 Code of Federal Regulations parts 25 and 100.

(b) Transmitting telecommunications information to a business that operates pursuant to 47 Code of Federal Regulations parts 25 and 100 if the transmitting meets the requirements of section 42-5061, subsection B, paragraph 16, subdivision (b).

3. "Purchase price" means either the direct cost of materials purchased by the taxpayer from a supplier for incorporation into the qualifying facility, or the direct cost of materials paid by a contractor for incorporation into the taxpayer's qualifying facility.

4. "Qualifying facility" means a new building or structure, or expansion of an existing building or structure, located entirely within this state, predominantly used for manufacturing, fabricating, mining, refining, metallurgical operations, direct broadcast satellite television or data transmission services or research and development as described in section 43-1168, and which has a total cost of construction in excess of five million dollars.

43-1082. Credit for construction materials incorporated into qualifying facility; definitions

A. A credit is allowed against the tax imposed by this title for new construction materials incorporated into a qualifying facility located entirely within this state, construction of which is begun on or after January 1, 1994 and completed on or before December 31, 1999. The credit shall be computed as five per cent of the purchase price of the materials. The credit shall be claimed in the taxable year in which the qualified facility receives a certificate of occupancy.

B. Co-owners of a business, including partners in a partnership and shareholders of an S corporation, as defined in section 1361 of the internal revenue code, may each claim only the pro rata share of the credit allowed under this section based on the ownership interest, except that partners in a partnership and members in a limited liability company may allocate among themselves any credit for construction materials that are incorporated into a facility that is predominantly used for direct broadcast satellite television or data transmission services in any proportion stated in their partnership or operating agreement. The total of the credits allowed all such owners may not exceed the amount that would have been allowed a sole owner.

C. If the allowable tax credit exceeds the taxes otherwise due under this title on the claimant's income, or if there are no taxes due under this title, the taxpayer may carry the amount of the claim not used to offset the taxes under this title forward for not more than five taxable years' income tax liability.

D. The department shall prescribe a form to be filed in the year the credit arises by a partnership or limited liability company that allocates the credit among its partners or members. The form constitutes an election by the business as to the proportion of the credit allocable to each of the specific owners. The election is irrevocable.

E. For purposes of this section:

1. "Construction materials" means tangible personal property incorporated into and permanently affixed to the taxpayer's qualifying facility other than materials exempt from taxation pursuant to section 42-5061 or 42-5159, subsection B.

2. "Direct broadcast satellite television or data transmission services" means either:

(a) Receiving, converting, processing, storing or transmitting telecommunications information by a business that operates pursuant to 47 Code of Federal Regulations parts 25 and 100.

(b) Transmitting telecommunications information to a business that operates pursuant to 47 Code of Federal Regulations parts 25 and 100 if the transmitting meets the requirements of section 42-5061, subsection B, paragraph 16, subdivision (b).

3. "Purchase price" means either the direct cost of materials purchased by the taxpayer from a supplier for incorporation into the qualifying facility, or the direct cost of materials paid by a contractor for incorporation into the taxpayer's qualifying facility.

4. "Qualifying facility" means a new building or structure, or expansion of an existing building or structure, located entirely within this state, predominantly used for manufacturing, fabricating, mining, refining, metallurgical operations, direct broadcast satellite television or data transmission services or research and development as described in section 43-1168, and which has a total cost of construction in excess of five million dollars.