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Claim Your Refundable Nebraska R&D Credit: Up to 35% of Federal Benefits for In-State Innovation
The Nebraska Advantage Research and Development Act, administered by the Nebraska Department of Revenue, rewards businesses for qualified research expenditures in the state by offering a refundable credit tied directly to federal IRC §41 guidelines. This credit supports innovation in agriculture, manufacturing, and technology sectors, allowing offsets against income taxes or refunds of sales and use taxes paid. Enacted in 2006 and available for tax years beginning on or before December 31, 2033, it applies to research performed in Nebraska, with enhanced rates for university collaborations at Nebraska colleges or universities.
Eligibility mirrors federal IRC §41: Businesses must perform qualified research in Nebraska, involving technological uncertainty and experimentation to develop or improve products, processes, or software. No industry restrictions, but strong uptake in agriculture, manufacturing, and biotech.
QREs must be Nebraska-sourced and meet federal definitions. Basic research payments to Nebraska universities qualify for the enhanced rate.
175% for qualified research consortia (e.g., energy research under IRC §41(b)(3)).
Nebraska's credit is calculated as a percentage of your federal R&D credit under IRC §41, making it straightforward for businesses already tracking qualified research expenses (QREs). Use only Nebraska-sourced activities for apportionment if operating multi-state. The state does not require a separate base calculation; it leverages federal results.
Nebraska's R&D credit stands out for its refundability and federal alignment, minimizing compliance burden while maximizing cash returns, especially valuable for agribusiness and manufacturing firms with $100M+ in annual state claims.
A Nebraska-based ag-tech firm recovered significant refunds to fuel expansion.
The Nebraska Advantage Research and Development Act provides a refundable credit equal to 15% of your federal IRC §41 R&D credit for Nebraska activities, or 35% for university on-campus research. It offsets income taxes or refunds sales/use taxes, administered by the Nebraska Department of Revenue.
Activities must align with federal IRC §41: technological experimentation to eliminate uncertainty in developing or improving business components, conducted in Nebraska. Examples include prototyping farm equipment or software for crop optimization. Strike Tax verifies qualifying projects.
For a $200,000 federal credit from Nebraska QREs, you could claim $30,000 (15%) refundable, or up to $70,000 (35%) with university ties. Stack with federal for total savings; use Strike Tax’s calculator for personalized estimates.
Yes, fully refundable as an income tax credit or sales/use tax refund at the entity level, even with no liability, perfect for startups. No cap applies, and E-Verify compliance is key. Strike Tax maximizes refund elections.
No pre-approval needed; file Worksheet RD and Form 3800N with your Nebraska tax return (corporate, partnership, or fiduciary). Include federal Form 6765 data and E-Verify documentation. Strike Tax handles filing and compliance.
Absolutely: Nebraska's credit is computed from your federal §41 amount, allowing full stacking without double-dipping. This amplifies savings for the same QREs. Strike Tax optimizes dual claims.
No major state alterations; the credit remains tied to federal rules. Federally, Section G of Form 6765 is optional for tax year 2025 (becoming mandatory for tax year 2026), and Section 174 allows full expensing. Strike Tax navigates these updates.
Yes, all new employees hired in Nebraska during the tax year must be verified via E-Verify; provide documentation or the credit is denied. This applies regardless of entity type. Strike Tax assists with compliance checks.
Apportion using a reasonable method, such as Nebraska QRE ratio (or property/payroll factors if elected), applied to your federal credit. For example, 40% Nebraska activities on a $100,000 federal credit yields $6,000 state credit (15%). Strike Tax models apportionment accurately.
High QREs in crop innovation and equipment R&D qualify easily, with refundability providing cash for operations. The 20-year claim period ensures sustained benefits. Strike Tax tailors claims for Nebraska's ag sector.
Use our calculator to estimate your potential federal and state benefits.
Schedule a consultation to structure your Nebraska research activities.
Connect with us to find out how R&D tax credits can boost your organization’s bottom line.
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.
R&D Tax Credit Available:
Yes
Eligible Entities:
C-Corporations, S-Corporations, LLCs, Partnerships
Deadline for Tax Filing:
Due with Nebraska Tax Return
Data Required to Compute Credit:
Federal Form 6765
What Information is needed?
Federal R&D Credit Amount
Credit Carryforward:
20 Years
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.
To get an estimate of the potential value of your unclaimed R&D Tax Credits, try out our credit calculator.
Download our R&D Tax Credit Calculator for Android to see how much you can receive from your qualified R&D tax credit expenses.
The Nebraska Advantage Research and Development Act provides a refundable credit equal to 15% of your federal IRC §41 R&D credit for Nebraska activities, or 35% for university on-campus research. It offsets income taxes or refunds sales/use taxes, administered by the Nebraska Department of Revenue.
Activities must align with federal IRC §41: technological experimentation to eliminate uncertainty in developing or improving business components, conducted in Nebraska. Examples include prototyping farm equipment or software for crop optimization. Strike Tax verifies qualifying projects.
For a $200,000 federal credit from Nebraska QREs, you could claim $30,000 (15%) refundable, or up to $70,000 (35%) with university ties. Stack with federal for total savings; use Strike Tax’s calculator for personalized estimates.
Yes, fully refundable as an income tax credit or sales/use tax refund at the entity level, even with no liability, perfect for startups. No cap applies, and E-Verify compliance is key. Strike Tax maximizes refund elections.
No pre-approval needed; file Worksheet RD and Form 3800N with your Nebraska tax return (corporate, partnership, or fiduciary). Include federal Form 6765 data and E-Verify documentation. Strike Tax handles filing and compliance.
Absolutely: Nebraska's credit is computed from your federal §41 amount, allowing full stacking without double-dipping. This amplifies savings for the same QREs. Strike Tax optimizes dual claims.
No major state alterations; the credit remains tied to federal rules. Federally, Section G of Form 6765 is optional for tax year 2025 (becoming mandatory for tax year 2026), and Section 174 allows full expensing. Strike Tax navigates these updates.
Yes, all new employees hired in Nebraska during the tax year must be verified via E-Verify; provide documentation or the credit is denied. This applies regardless of entity type. Strike Tax assists with compliance checks.
Apportion using a reasonable method, such as Nebraska QRE ratio (or property/payroll factors if elected), applied to your federal credit. For example, 40% Nebraska activities on a $100,000 federal credit yields $6,000 state credit (15%). Strike Tax models apportionment accurately.
High QREs in crop innovation and equipment R&D qualify easily, with refundability providing cash for operations. The 20-year claim period ensures sustained benefits. Strike Tax tailors claims for Nebraska's ag sector.
