Nebraska R&D Tax Credit

Nebraska R&D Tax Credit

Supports Nebraska firms with innovation tax relief for commercialization and local growth.

Eligibility · United States · US-NE

The Nebraska Advantage Research and Development Act (R&D Tax Credit) is a refundable state tax credit authorized under LB 312 (Neb. Rev. Stat. §77-5801 et seq.) and administered by the Nebraska Department of Revenue. The credit is calculated as 15% of the taxpayer's federal IRC §41 R&D credit attributable to qualified research performed in Nebraska, rising to 35% when the research is performed on the campus of a Nebraska college or university or in a facility owned by such an institution. This tiered structure creates a strong incentive for industry-university research partnerships and positions Nebraska among the more generous state R&D credit programs in the region.

A defining feature of the Nebraska program is its refundability: unlike most state R&D credits, the Nebraska credit can exceed the taxpayer's state income tax liability and be issued as a cash refund, or alternatively applied against sales and use tax obligations. This makes the credit valuable even to pre-revenue or early-stage companies with limited current tax liability. There is no competitive application or annual statewide cap — claims are self-filed on Form 3800N (Nebraska Incentives Credit Computation) attached to the annual state tax return, and the Nebraska DOR may audit claims. The program is broadly sector-agnostic, covering for-profit businesses, qualifying research organizations, and universities conducting qualified R&D in Nebraska.

The 35% university-campus rate is a distinctive differentiator. Companies that locate R&D activities at University of Nebraska facilities, or that partner formally with Nebraska colleges, effectively double their credit rate compared to standalone commercial lab settings. Organizations should document qualifying expenditures consistent with federal §41 substantiation standards and retain contemporaneous records of the research activities, Nebraska nexus, and the campus-affiliation status if claiming the enhanced rate.