Apportionment Formula

023.01 The federal taxable income, as adjusted, of a unitary business operating both within and without Nebraska shall be apportioned to this state by use of the apportionment formula set forth in section 77-2734.05 of the Nebraska Revised Statutes. The apportionment formula for tax years 1992 and thereafter consists of the sales factor (see Reg-24-035) of the trade or business of the taxpayer. A corporation, including an entity which has elected to file under Subchapter S of the Internal Revenue Code, engaged in business in Nebraska which is not subject to tax in another state does not apportion its income, but reports its entire taxable income to Nebraska. (Sections 77-2734.05, and 77-2734.16, R.R.S. 2003, and section 77-2734.01, R.S.Supp., 2005. March 7, 2006.)