The Nebraska R&D tax credit, explained
Nebraska's R&D credit is refundable, worth 15% of the federal credit, or 35% for research done with a Nebraska university.
Last verified July 2026 against Nebraska Department of Revenue guidance.
The short answer
Yes, Nebraska has a state R&D tax credit, and it stands out because it is refundable. The Nebraska Advantage Research and Development Act, administered by the Nebraska Department of Revenue, pays companies a percentage of their federal R&D credit for research conducted in Nebraska.
How the Nebraska credit works
The standard rate is 15% of the federal credit allowed for Nebraska research. That rate jumps to 35% if the research happens on a Nebraska college or university campus or at a facility owned by one of those institutions.
Because the credit is refundable, a company can get cash back even if it owes little or no Nebraska income tax. Nebraska also allows companies to apply the credit toward a refund of Nebraska sales and use taxes paid, instead of income tax, whichever fits the business better.
How it stacks with the federal credit
Nebraska's credit is built directly on top of the federal credit, so the two stack automatically once the federal number is calculated. The federal credit is worth roughly 6% to 10% of qualified research spend, and Nebraska simply pays back 15% or 35% of that federal amount.
Startups under $5 million in revenue can also apply the federal credit against up to $500,000 a year in payroll taxes. Nebraska's refundable state credit adds cash on top of that, which makes Nebraska one of the more startup friendly states for R&D tax credits.
Example: a Nebraska agtech company with 7 engineers and an average salary of $102,000 spends about $714,000 a year on qualified research. At roughly 7%, the federal credit comes to about $49,980. Nebraska's standard 15% rate adds a refundable $7,497. If the same research had been done through a partnership with a Nebraska university, the state credit would be closer to $17,493 at the 35% rate. Either way, the state check comes on top of whatever the company does with its federal credit.
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Eligibility and how to claim it
Any company conducting qualified research in Nebraska can claim the credit, as long as it also qualifies for the federal R&D credit, since the state credit is calculated as a percentage of the federal one. There is no separate application or pre-registration required.
The credit is claimed on Form 3800N, the Nebraska Incentives Credit Computation, along with the Form 3800N Worksheet RD, filed with the company's Nebraska income tax return. Companies must also verify the work eligibility status of Nebraska hires electronically to keep the credit.
Claimship preps the federal research study and Form 6765 package that Nebraska's state credit calculation depends on. The company's CPA calculates the Nebraska credit off that federal number and files it with the Nebraska Department of Revenue.
Official source: Nebraska Department of Revenue.
Carryforward and deadlines
The standard rate credit can be claimed in the year earned and for the following 20 tax years. The enhanced university rate can be claimed in the year earned and for the following 4 tax years, a shorter window worth planning around.
There is no separate application deadline, since the credit is calculated directly on the Nebraska return using the federal credit figure. Companies should keep their work eligibility verification current for every Nebraska hire, since that compliance step is a condition of claiming the credit.