1040N-EB: Residence in Designated Extremely Blighted Area Credit (2025)
Nebraska · Nebraska DOR · Used for tax years 2025
Nebraska Form 1040N-EB is used to claim the Purchase of a Nebraska Residence in a Designated Extremely Blighted Area Credit. It reports property and purchase information, calculates the credit claimed for 2025, and determines any unused credit to carry forward. It must be attache
Who files this form
Complete and attach Form 1040N-EB to Form 1040N if you are claiming this credit for 2025, including using an unused credit carried forward.
To qualify, you must have purchased a Nebraska residence that:
- Is your primary residence.
- Is in a designated extremely blighted area.
- Was not purchased from your family member or your spouse’s family member.
The purchase must have occurred in a taxable year beginning or deemed to begin on or after January 1, 2020, and before January 1, 2032. The credit may be claimed only once for a single residence.
What you'll need
- Form 1040N: You will need the tax liability and credit amounts listed on that return to complete Part B.
- Property information: Have the purchase date, seller’s name, property address, and county-assigned property ID or parcel number. The number may appear on the County Assessment Notice or Real Estate Tax Statement, or be available through the County Assessors and Parcel Search.
- Proof of the area designation: Attach documentation showing that the property is in a designated extremely blighted area. You can obtain this from the city planning department where the residence is located. Its website may offer maps or lookup tools; otherwise, contact the department by phone.
- Prior-year form, if carrying forward a credit: Use line 9 of your 2024 Form 1040N-EB.
Keep records of the purchase and the extremely blighted designation for the longer of five years from the end of the purchase tax year or three years from the date the return using the credit is filed.
How to file
Complete Form 1040N-EB and attach it to your Nebraska individual income tax return, Form 1040N. Use it for the tax year that includes the purchase date and each later year in which you use a carried-forward credit.
- Complete Part A: Enter your name and Social Security number, purchase date, seller’s name, property address, and property ID or parcel number. Answer the eligibility questions and attach documentation of the extremely blighted designation.
- Complete Part B: On line 4, enter $5,000 for a qualifying residence purchased in 2025, or the unused credit from line 9 of your 2024 Form 1040N-EB. Enter the tax and other credit amounts requested from Form 1040N.
- Calculate the credit: Line 7 is line 5 minus line 6o, but not less than zero. On line 8, enter the smaller of line 4 or line 7. Also enter that amount on line 26 of Form 1040N.
- Calculate the carryforward: Subtract line 8 from line 4 and enter the result on line 9 as the amount carried forward to 2026.
The supplied text does not give a mailing address or e-file directions.
Common mistakes
- Continuing after a “No” answer in Part A: The form says to stop. You do not qualify if any answer is “No.”
- Claiming a purchase from family: A purchase from your family member or your spouse’s family member does not qualify.
- Leaving out designation documentation: If all Part A answers are “Yes,” attach proof that the property is in a designated extremely blighted area.
- Forgetting the attachment in a carryforward year: Complete and attach Form 1040N-EB for each year you use part of the credit.
- Overlooking recapture: Selling or otherwise transferring the residence, or stopping its use as your primary residence, within five years after the end of the purchase tax year triggers recapture. You must amend the initial year the credit was claimed and each later year the carried-forward credit was used.
Questions people ask
How much is the credit for a qualifying purchase in 2025?
Enter $5,000 on line 4. The amount you can claim for 2025 is the smaller of that amount or your tax remaining after the other nonrefundable credits listed on the form.
What happens if I cannot use the full credit?
Unused credit may be carried forward to later tax years until used. Complete and attach Form 1040N-EB each year you use a portion of it.
Who counts as a family member?
The form defines family member as a spouse, child, parent, brother, sister, grandchild, or grandparent, whether by blood, marriage, or adoption. Purchases from your family or your spouse’s family do not qualify.
How can I check whether my property is in a designated extremely blighted area?
Contact the city planning department where the residence is located. Its website may have maps or lookup tools. The text specifically identifies lookup tools on the City of Omaha Planning Department website and the City of Lincoln Urban Development website.
Can the credit be claimed more than once for the same residence?
No. The credit may be claimed only once for a single residence, but any unused amount may be carried forward until used.