Nebraska Still an Outlier, Keeps Full Tax on Offshore Earnings

Nebraska will continue to tax the offshore earnings of multinational corporations after legislation championed by business interests to abandon the practice collapsed Tuesday.

The Senate declined to advance an amendment to an omnibus corporate tax reform measure, L.B. 432, which would have brought Nebraska into conformity with the majority of states declining to tax corporate earnings beyond national borders, or the “water’s edge.” The amendment had the support of the Nebraska Chamber of Commerce and the business-focused Council on State Taxation, which singled out Nebraska in a lawsuit filed late last year challenging policies that capture foreign earnings into ...