77-3118.

Tax credits; allowance; manner.

(1) The tax credits provided for in sections 77-3117 to 77-3120 shall be available for contributions to a certified program or project which may qualify as a charitable contribution deduction on the federal income tax return filed by the business firm or individual making such contribution. The maximum tax credit allowance approved by the department shall be final for the fiscal year in which the program or project is certified. A copy of all decisions shall be transmitted to the Tax Commissioner. A copy of all credits allowed to business firms under sections 44-150 and 77-908 shall be transmitted to the Director of Insurance.

(2) For all business firms and individuals eligible for the credit allowed by section 77-3119, except for insurance companies paying premium and related retaliatory taxes in this state pursuant to section 44-150 or 77-908, the Tax Commissioner shall provide for the manner in which the credit allowed by section 77-3119 shall be taken and the forms on which such credit shall be allowed. The Tax Commissioner shall adopt and promulgate rules and regulations for the method of providing tax credits. The Director of Insurance shall provide for the manner in which the credit allowed by section 77-3119 to insurance companies paying premium and related retaliatory taxes in this state pursuant to sections 44-150 and 77-908 shall be taken and the forms on which such credit shall be allowed. The Director of Insurance may adopt and promulgate rules and regulations for the method of providing the tax credit. The Tax Commissioner shall allow against any income tax due from the insurance companies paying premium and related retaliatory taxes in this state pursuant to section 44-150 or 77-908 a credit for the credit provided by section 77-3119 and allowed by the Director of Insurance.

(3) The decision of the department to approve or disapprove all or any portion of a proposal or certify a program or project for a designated amount of tax credits shall be provided in writing within forty-five days after receipt of a complete application. If the program or project is approved or certified for a designated amount of tax credits, the department shall prepare and transmit a written agreement to the community betterment organization. The date the written agreement is fully executed by the community betterment organization and the department shall be the date from which contributions may be made to the approved program or project.

(4) Documentation evidencing contributions made to programs or projects certified for tax credit status by the department shall be submitted to the department. The department may request additional documentation as the facts and circumstances may require, or to substantiate the value of the contribution, but documentation shall generally be as follows:

(a) Cash contributions may be shown by a photocopy of both sides of the canceled check or by proof of electronic funds transfer that includes documentation from the bank account of origin and destination. Checks shall be made payable to the community betterment organization and noted specifically for that program or project, and electronic funds transfers shall be transferred into the community betterment organization's bank account for the program or project certified for tax credit status by the department;

(b) Real property contributions may be shown by the deed and documentation of at least one independent appraisal of the real property by a real property appraiser credentialed under the Real Property Appraiser Act;

(c) Contributions of equipment or supplies may be shown by copies of invoices signed by both the contributor and the community betterment organization receiving the equipment or supplies;

(d) Stock contributions shall be converted into cash before the community betterment organization receives the donation. Stock contributions may be shown as cash contributions; and

(e) Other contributions may be shown by affidavit or by other signed statement deemed acceptable by the department that identifies the contribution, the value of the contribution, and how the value was determined along with other information as may be requested by the department for the particular situation.

(5) The value of eligible contributions made to community betterment organizations for programs or projects certified for tax credit status by the department shall be determined based upon the valuation of charitable contributions for federal income tax purposes established by the Internal Revenue Service of the United States Department of the Treasury.