Nebraska Advantage
Research and Development Act
Description of Benefits


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General Information:

The Nebraska Advantage Research and Development tax credit is available for tax years beginning on or after January 1, 2006.  A business firm, which incurs research and development expenditures, is eligible for a Nebraska tax credit.  If the firm does business within and without Nebraska, the federal tax credit must be apportioned before calculating the Nebraska tax credit. 

No business firm may claim the credit for the first time in a tax year beginning after December 31, 2015.


Description of Benefits:

The research and development tax credit may be claimed by a business firm for five years.

Tax Year 2006. A business firm which incurs research and development expenditures, as defined in §174 of the Internal Revenue Code (IRC), may claim a tax credit equal to three percent of the increase in Nebraska research and development expenditures in the current year, as compared to the average of the expenditures in the two years prior to first claiming the tax credit.

Tax Years 2007 and 2008. A business firm which incurs research and development expenditures, as defined in §174 of the IRC, may claim a credit equal to 15 percent of the federal tax credit allowed.

Tax Years 2009 and Later. A business firm which incurs research and development expenditures, as defined in §174 of the IRC, may claim the enhanced research credit of 35 percent for research activity on the campus of a college or university in Nebraska, and a credit equal to 15 percent of the federal tax credit allowed for activities that are not on-campus.


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