43-1078. Credit for property taxes paid by
qualified defense contractor
A. A credit is allowed against the taxes imposed by this title equal to a portion
of the amount paid as taxes during the taxable year by a qualified defense contractor
that is certified by the department of commerce under section 41-1508, on property in
this state that is classified as class one, paragraphs 12 and 13 pursuant to section
42-12001.
B. The amount of the credit is determined as follows:
1. Multiply the amount paid as taxes on property classified as class one,
paragraphs 12 and 13 pursuant to section 42-12001 in this state during the taxable year
by a percentage based on net new defense related employment, determined by subtracting
the employment baseline determined pursuant to section 43-1077, subsection D, paragraph
1, from average annual employment as reported to the department of economic security for
the taxable year, as follows:
New employment Credit percentage
More than 900 40%
601 - 900 30%
301 - 600 20%
1 - 300 10%
2. Multiply the amount determined under paragraph 1 of this subsection by a
percentage determined by dividing the taxpayer's total gross income from United States
department of defense contracts apportioned to this state by the taxpayer's total gross
income from all sources apportioned to this state.
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 until
taxable years beginning from and after December 31, 2011 as a credit against subsequent
years' income tax liability, regardless of continuing certification as a qualified
defense contractor.
D. The credit allowed by this section is in lieu of a deduction for property taxes
under section 43-1042 with respect to the same taxes paid.
E. 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. The total of the credits allowed all such owners may not exceed the amount
that would have been allowed for a sole owner of the business.
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