Nebraska Administrative Code
Topic - REVENUE, DEPARTMENT OF
Title 316 - NEBRASKA DEPARTMENT OF REVENUE
Chapter 24 - CORPORATION INCOME TAX
Section 316-24-301 - APPORTIONABLE AND NONAPPORTIONABLE INCOME
Current through March 20, 2024
301.01 In General
A business entity or unitary group generating income from a business activity that is taxable within Nebraska and subject to tax in at least one other state must apportion its income. The income is apportioned using the sales factor only, as provided in Reg-24-301 through Reg-24-350.
301.02 Apportionable Income
The entire federal taxable income of a corporation, a unitary group, or a partnership is presumed to be apportionable income. The apportionable income includes income arising from transactions and activity of the business, and income arising from tangible and intangible property if the acquisition, management, employment, development, or disposition of the property was related to the operation of the business entity's trade or business.
301.03 Nonapportionable Income
Nonapportionable income is any income the taxpayer has shown is not subject to apportionment. Income that is claimed to be nonapportionable must be supported by:
301.04 Any nonapportionable income is subtracted from federal taxable income prior to apportioning the income to Nebraska. The amount subtracted must be reduced, but not below zero, by a portion of the interest expense and any expense incurred in the production of the nonapportionable income.
301.05 A business entity or unitary group engaged in business in Nebraska which is not subject to tax in any other state cannot apportion its income, and must report its entire taxable income to Nebraska.