43-1139

43-1139. Allocation of business income

A. Except as provided in subsection B of this section, the taxpayer shall elect to
apportion all business income to this state for taxable years beginning from and after:

1. December 31, 2006 through December 31, 2007 by either:

(a) Multiplying the income by a fraction, the numerator of which is the property
factor plus the payroll factor plus two times the sales factor, and the denominator of
which is four.

(b) Multiplying the income by a fraction, the numerator of which is two times the
property factor plus two times the payroll factor plus six times the sales factor, and
the denominator of which is ten.

2. December 31, 2007 through December 31, 2008 by either:

(a) Multiplying the income by a fraction, the numerator of which is the property
factor plus the payroll factor plus two times the sales factor, and the denominator of
which is four.

(b) Multiplying the income by a fraction, the numerator of which is one and
one-half times the property factor plus one and one-half times the payroll factor plus
seven times the sales factor, and the denominator of which is ten.

3. December 31, 2008 by either:

(a) Multiplying the income by a fraction, the numerator of which is the property
factor plus the payroll factor plus two times the sales factor, and the denominator of
which is four.

(b) Multiplying the income by a fraction, the numerator of which is the property
factor plus the payroll factor plus eight times the sales factor, and the denominator of
which is ten.

B. All business income of a taxpayer engaged in air commerce shall be apportioned
to this state by multiplying the income by a fraction, the numerator of which is the
revenue aircraft miles flown within this state for flights beginning or ending in this
state and the denominator of which is the total revenue aircraft miles flown by the
taxpayer's aircraft everywhere. This subsection applies to each taxpayer, including a
combined group filing a combined return or an affiliated group electing to file a
consolidated return under section 43-947, if fifty per cent or more of that taxpayer's
gross income is derived from air commerce. For the purposes of this subsection:

1. "Air commerce" means transporting persons or property for hire by aircraft in
interstate, intrastate or international transportation.

2. "Revenue aircraft miles flown" has the same meaning prescribed by the United
States department of transportation uniform system of accounts and reports for large
certificated air carriers (14 Code of Federal Regulations part 241).