Section 85-1C-007 - Requesting of Tax Credits by Contributors007.01 Form CDAA 1 - Tax Credit Request FormAfter an Individual or Business Firm makes a contribution to a Community Betterment Organization for a project or program that has been certified for Tax Credit status by the Department, such Individual or Business Firm may apply to the Department for a Tax Credit.
Application for a Tax Credit shall occur by submission to the Department, Form CDAA 1 - Tax Credit Request Form, with documentation evidencing the contribution made to the project or program that was certified for Tax Credit status by the Department.
007.02 In-Kind Contributions When business firms make an in-kind contribution to community service projects in the nature of operating supplies or maintenance, tax credits will be granted on the net cost of such items to the donor. Invoices or any other documents showing proof of cost to the donor shall be submitted with the application for tax credits. It is also required that the business firm submit an affidavit which guarantees that the contribution will be or has been claimed as a charitable contribution under the Internal Revenue Service.
007.03 Contributions of Personnel The cost of a business firm loaning personnel in order to provide expertise and technical assistance to a community betterment organization will be considered contributions and will be eligible for a tax credit; Personnel time shall be prorated at an hourly wage and other benefits from the firm. The exact amount of time spent on the project shall be indicated and noted by the employee and signed by the community betterment organization. It is also required that the business firm submit an affidavit which guarantees that the contribution will be or has been claimed as a charitable contribution under the Internal Revenue Service.
007.04 Contributions to Capital Construction Campaigns A capital construction campaign is the raising of funds for the construction or permanent improvement to property or the purchase of furniture or equipment to be used as outlined in the community betterment organization's proposal.
007.04A Capital construction campaign programs can be approved for up to a three-year period. Each year of the three-year period must be approved individually. 007.04B Any building not owned by a community betterment organization to be renovated must have a lease which would cover the useful life of the renovations.007.04C Capital construction campaigns may only cover the work as outlined in the community betterment organization's proposal.007.04D Campaign expenses such as fund raisers, materials, ads, rentals, and the like shall not be included as program costs.007.04E Cost incurred under the program shall be for construction related costs only. Payment of interest on loans is not an eligible cost.007.04F Community betterment organizations must provide activities eligible under this program to low and moderate income individuals in designated chronically, economically distressed areas to be eligible for capital construction projects.007.04G In addition to other application requirements, proposals for capital construction campaigns must include a statement of the total number of individuals who are being served or who will be served by the organization, appropriate plans and costs, a description of specific programs aimed toward low income individuals and how many will be served by the program and a statement as to how the facility will be used in the program.007.04H The tax credit allowed for the capital construction campaign will be determined by prorating the entire cost of the capital construction, excluding ineligible costs under this chapter, to the percentage of low income individuals served by the organization in a designated chronically economically distressed area. The amount of tax credits under this subsection shall be subject to the limitations previously set forth.007.05 The tax credit allowed for business firms purchasing shares of stock in the business development corporation serving the targeted area as identified in section 001.11, will be based on the face value amount of stock at the time of purchase.85 Neb. Admin. Code, ch. 1C, § 007