77-5409. Recapture or disallowance of credits; procedure.
(1) If the taxpayer fails either to meet the required levels of employment, wages, or investment for the applicable project by the end of the second year after the end of the year the application was submitted for such project or to use such project in a qualified business at employment, wages, and investment levels at or above those required in the agreement for the entire entitlement period, all or a portion of the incentives set forth in the Rural Economic Opportunities Act shall be recaptured or disallowed.
(2) The recapture or disallowance shall be as follows:
(a) In the case of a taxpayer who failed to meet the required levels within the required time period, any reduction in the corporate income tax arising from the use of credits prescribed in section 77-5407 shall be deemed an underpayment of the income tax and shall be immediately due and payable; and
(b) In the case of a taxpayer who failed to maintain the project at the required levels of employment, wages, and investment for the entire entitlement period, any reduction in tax allowed because of the use of a credit allowed under section 77-5407 shall be partially recaptured from the taxpayer and any carryovers of credits shall be partially disallowed. One-seventh of the credits used shall be recaptured and one-seventh of the remaining carryovers shall be disallowed for each year the taxpayer did not maintain such project at or above the required levels of employment, wages, or investment.
(3) Any reduction in tax due, to the extent required to be recaptured, shall be deemed to be an underpayment of the tax and shall be immediately due and payable. When tax benefits were received in more than one year, the tax benefits received in the most recent year shall be recovered first and then the benefits received in earlier years up to the extent of the required recapture.
(4) Notwithstanding any other limitations contained in the laws of this state, collections of any taxes deemed to be underpayments by this section shall be allowed for a period of ten years after the signing of the agreement or three years after the end of the entitlement period, whichever is later.
(5) Any amounts due under this section shall be recaptured notwithstanding other allowable credits and shall not be subsequently refunded under any provision of the act unless the recapture was in error.
(6) The recapture required by this section shall not occur if the failure to maintain the required levels of employment, wages, or investment was caused by an act of God or national emergency.
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