775N: Employment and Investment Growth Act Credit (Revision 2013-05)
Nebraska · Nebraska DOR · Used for tax years 2024, 2025
Nebraska Form 775N computes credits under the Employment and Investment Growth Act. It reports project investment, employment and wage information, credits earned and used, credit distributions, and amounts carried forward.
Who files this form
Any taxpayer who has filed a project application for an agreement with the State Tax Commissioner must file Form 775N each year, starting with the application year and continuing until all incentives under the Act expire.
Form 775N is used with Nebraska Forms 1120N, 1065N, 1120-SN, 1120NF, 1041N, and 1040N.
Applicants who applied after April 30, 1996, must also file Schedule I, Estimated Sales or Use Tax Refunds, each year.
What you'll need
Have the following information ready to complete the form:
- Your Nebraska income tax return, taxpayer identification numbers, and project name, number, location, application year, and agreement option.
- Records of qualified property costs, leases, property retirements, canceled or expired leases, and sales and use taxes paid at the project.
- Employee hours and compensation for the current year and base year, plus actual Nebraska employee counts and wage information for new jobs.
- Credit amounts carried forward, received through distributions, used against income tax, used for sales and use tax refunds, or distributed to others.
Use the employee, compensation, and investment worksheets that apply to your application year. Schedule II requests each credit recipient’s name, identification number, share of income or ownership, distributed credit, and tax status. Schedule III requests information about project changes, including new locations, ownership changes, new entities, and asset acquisitions.
How to file
Attach Form 775N to your Nebraska income tax return. The supplied text does not give a mailing address or e-file directions.
- Attach Schedule I to Form 775N if your project application was filed after April 30, 1996.
- Use Schedule II to report credits distributed to partners, S corporation shareholders, or certain fiduciary beneficiaries. Enter its total on line 17 of Form 775N.
- Enter the credit used against income tax on line 15 and on the appropriate line of Form 3800N.
You may elect to file the form reporting the initial attainment of the required levels immediately after the last day of the year those levels were met.
Common mistakes
- Leaving out an explanation for corrections. Check the corrected box for each year changed and attach an explanation.
- Omitting required Schedule I. It is required annually for projects with applications filed after April 30, 1996.
- Not notifying credit recipients. Each partner, S corporation shareholder, or beneficiary should be notified of their distributed credit so they can complete Form 3800N, Part C.
- Reporting cents. Show whole dollars. Round amounts of 50 through 99 cents up and amounts below 50 cents down.
Questions people ask
What is the entitlement period?
It is the year the required increases in employment and investment were first met or exceeded, plus the next six years. The carryover period is the next eight years after the entitlement period ends.
Should line 7 use full-time equivalent employees?
No. Report the actual number of people employed in Nebraska at each date. Include all Nebraska employees, not just those working at the project.
How do I calculate the credit balance to carry forward?
On line 18, subtract lines 15, 16, and 17 from line 14. Carry that ending balance to the following year’s line 12.
When can direct sales and use tax refunds first be claimed?
Direct refunds cannot be claimed or paid until the year after the required employment and investment levels are met. In subsequent years, quarterly refund claims may be filed.