(1) For purposes of the Cast and Crew Nebraska Act, qualifying expenditure includes:

(a) Pre-production, production, and post-production expenditures made in Nebraska that are subject to taxation by the state;

(b) Scouting and spending related to the production activity in the state prior to application for qualification;

(c)(i) Above-the-line employee wages for residents of Nebraska or paid through a Nebraska loan out company.

(ii) Loan out companies will be required to pay applicable Nebraska income taxes.

(iii) The total above-the-line employee wages and related expenses shall be not more than twenty-five percent of the total instate expenditures of a production activity;

(d) Below-the-line employee wages;

(e) Per diems of up to thirty dollars per day per employee; and

(f) Expenditures not otherwise available for rental or purchase within Nebraska and paid for via a Nebraska supplier.

(2) Qualifying expenditures do not include:

(a) Wages paid to independent contractors, or self-employed individuals, except that wages shown to be paid by a Nebraska-based production company for a commercial production activity and wages the taxes of which are shown to be withheld by the employer may be approved by the department on the application for the tax credit;

(b) Above-the-line employee per diems or living allowance expenses;

(c) Taxes imposed pursuant to the Federal Insurance Contributions Act and other payroll taxes;

(d) Contributions under the Federal Unemployment Tax Act and the Employment Security Law; and

(e) Union dues and benefits.