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43-1166. 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 43-1165, 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. Co-owners of a business, including corporate partners in a partnership, 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.