Nebraska R&D Tax Credits

Nebraska provides a research and development credit that very closely matches the federal tax credits under IRC § 41. The Nebraska Advantage Research and Development Credit is a refundable credit equal to either 15% or 35% of the federal credit allowed under IRC § 41 for qualifying taxpayers. Most companies with QREs can claim an R&D tax credit equal to 15% of the federal credit allowed under IRC § 41, and also 35% of the federal R&D credits attributed to basic research payments made to a college or university in Nebraska.

If the business firm makes R&D expenditures in Nebraska and in other states, the tax credit will be apportioned to determine the amount based on activities conducted in Nebraska. The credit is claimed using Nebraska Form 3800N and Worksheet RD.

Learn more about Nebraska's R&D Tax Credit law the state's Department of Revenue.

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R&D Tax Credit Available:

Yes

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Eligible Entities:

C-Corporations, S-Corporations, LLCs, Partnerships

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Deadline for Tax Filing:

Due with Nebraska Tax Return

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Data Required to Compute Credit:

Federal Form 6765

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What Information is needed?

Federal R&D Credit Amount

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Credit Carryforward:

20 Years

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The R&D tax credit equals:

• For taxpayers doing business only in Nebraska, and only at off-campus sites, multiply the federal credit amount by 15%.
• For taxpayers doing business only in Nebraska, and only at on-campus sites, multiply the federal credit amount by 35%. Provide the address of each college or university campus or facility where R&D activities were conducted.
• If the taxpayer doesn't meet either of those, then the credit must be apportioned accordingly.

Specific Items to Note:

All businesses claiming the Nebraska R&D tax credit must electronically verify the work eligibility status of all newly-hired employees in Nebraska during the tax year in which the credit is claimed.