One-half of net earnings before taxation for the two taxable years preceding the taxable year of displacement. Net earnings include compensation from the business or farm operation to its owner, the owner’s spouse, and any dependents. For a corporation, net earnings include compensation to the principal owner, the owner’s spouse, and the owner’s children. For the purpose of this compensation, a “loss” for any given year shall be considered “zero” income.

An alternate time period for determining net earnings may be used when TxDOT determines such to be more equitable. Written approval for use of an alternate time period must be obtained from the ROW Program Office. Send a full explanation of the reasons why the immediately preceding two year period is not representative of the typical business or farm operation’s earnings with the alternate period request.