3800N: Nebraska Incentives Credit Computation (2024)
Nebraska · Nebraska DOR · Used for tax years 2024
Nebraska Form 3800N computes refundable and nonrefundable incentive tax credits for tax year 2024. It identifies the incentive programs, credit amounts used, distributed credits, and projects associated with the credits. Attach it to the original or amended tax return on which th
Who files this form
Every taxpayer claiming any credit listed on lines 4 through 22 must complete Form 3800N. This includes individuals, corporations, partnerships, S corporations, limited liability companies, exempt cooperatives, and fiduciaries claiming these credits.
Partners, shareholders, members, patrons, and beneficiaries claiming distributed credits must also report the credits on line 24 and attach the appropriate Nebraska Schedule K-1N.
What you'll need
Have your Nebraska income tax liability and other nonrefundable credit amounts ready for lines 1 through 3. The documents needed depend on the credit you claim:
- Distributed credits: Attach the appropriate Nebraska Schedule K-1N from each distributing entity. For line 24, gather the entity's name, address, Nebraska ID number, incentive program, year the credit was earned, amount received, and applicable project, application, or certificate number.
- Employment and Investment Growth Act: Project holders must attach Form 775N and DOR's qualification letter. These attachments are not required for recipients of distributed LB 775 credits.
- Renewable Energy Tax Credit: Attach Worksheet E, Form 3800N.
- Nebraska Advantage Act: Project holders must attach Form 312N and DOR's qualification letter. These attachments are not required for recipients of distributed LB 312 credits.
- Nebraska Historic Tax Credit: Attach the Nebraska Historic Tax Credit Worksheet.
- ImagiNE Nebraska Act: Applicants with signed agreements must have previously filed Form 1107N or attach a completed copy. Form 1107F must be filed separately with DOR for the administrative fee.
- Nebraska Advantage Rural Development Act, line 16: Attach DOR's qualification letter. Level 1 and Level 2 projects must also attach Worksheets I and II. Livestock Modernization projects must attach Worksheet LM.
- Nebraska Advantage Microenterprise Tax Credit: Attach completed Worksheet M and supporting documentation.
- Nebraska Advantage Research and Development Act, line 18: Attach Worksheet RD, Form 3800N.
- Urban Redevelopment Act: For line 14, contact DOR for the necessary worksheet and documentation requirements. For line 19, project holders must attach Form 544N.
- Renewable Chemical Production, Higher Blend, and Biodiesel credits: Have the approved certificate number ready for lines 20, 21, and 22, respectively.
How to file
Complete Form 3800N and attach it to the original or amended Nebraska income or financial institution tax return for which you claim the credit.
- Enter total nonrefundable incentive credits on line 15 and on the applicable return.
- Enter total refundable incentive credits on line 23 and on the applicable return.
- Complete line 24 for distributed credits and attach the required Schedule K-1N copies.
The listed returns are Forms 1040N, 1065N, 1120N, 1120-SN, 1041N, and 1120NF. The supplied text does not give a mailing address or e-file directions.
Common mistakes
- Claiming more nonrefundable credits than allowed: Line 15 cannot exceed line 3, your Nebraska income tax liability after other nonrefundable credits.
- Completing nonrefundable credit lines when line 3 is zero: If line 2 exceeds line 1, enter zero on line 3. If line 3 is zero, do not complete lines 4 through 15.
- Combining different distributed credits: Use a separate line for each type of credit received when credits come from more than one program or entity. Attach a separate Schedule K-1N from each entity.
- Skipping the ImagiNE administrative fee: DOR will not allow the credit to offset income tax liability until the 0.5% fee on the credit used is paid. File Form 1107F with DOR and pay the fee separately from the Nebraska income tax return.
- Discarding records too soon: Keep supporting records for at least three years after filing the return claiming the credit. For an allowed credit carryforward, keep the original supporting records for at least three years after filing the last return using that carryforward.
Questions people ask
What does Form 3800N do?
It identifies the incentive programs, credit amounts used, distributed credits, and specific projects involved. It also distinguishes between refundable and nonrefundable incentive credits.
Can I attach Form 3800N to an amended return?
Yes. The form says to attach it to the original or amended return.
Which amount goes on line 18 for the research and development credit?
Enter the amount from line 22 of Worksheet RD, Form 3800N, as a refundable credit.
Can any of these credits reduce taxes other than income tax?
Yes. The text says New Markets, Nebraska Historic, Nebraska Affordable Housing, and Nebraska Higher Blend tax credits can also reduce insurance premium tax liability or financial institutions franchise tax liability.