As we had highlighted in the May/June 2009 Newsletter, during the last legislative session, the Nebraska Legislature passed a law which requires participants in Nebraska incentive programs to utilize E-Verify, the federal electronic verification program that ensures all new employees are legally able to work in the United States. Nebraska tax incentives will not be granted until the applicant can prove that it has electronically verified the work eligibility status of all newly hired employees employed in Nebraska.
The Department has recently issued an informational notice which explains when the E-Verify requirements must be met. Applicants under the Nebraska Advantage Act, the Nebraska Advantage Rural Development Act, and the Nebraska Advantage Microenterprise Tax Credit Act, who apply on or after October 1, 2009, must electronically verify the work eligibility of all newly hired employees employed in Nebraska beginning October 1, 2009. If a taxpayer plans to claim a Nebraska Research and Development Act credit for a tax year which begins on or after January 1, 2009, that taxpayer must verify the work eligibility of all newly hired employees employed in Nebraska beginning on or after October 1, 2009.