CDN: Community Development Assistance Act Credit (2024)
Nebraska · Nebraska DOR · Used for tax years 2024
Nebraska Form CDN calculates the Community Development Assistance Act credit claimed for 2024 and any unused credit carried forward. It also reports credits received from or distributed by partnerships, S corporations, certain fiduciaries, and LLCs.
Who files this form
Eligible claimants must file Form CDN to claim the Nebraska Community Development Assistance Act credit or distribute it to their owners.
The credit is available to individuals or business firms granted a credit by the Nebraska Department of Economic Development (DED) for contributions to approved community betterment projects. Eligible claimants may include individuals, sole proprietors, corporations, partnerships, S corporations, fiduciaries, and LLCs conducting business activities. Insurance companies paying premium tax and financial institutions paying financial institution tax may also qualify.
What you'll need
Have the following information available, as applicable:
- The name and Social Security number or Nebraska ID number shown on your return.
- The credit amount approved by DED and records of your contributions.
- Your 2023 Form CDN and information about unused credits from earlier years to calculate the allowable carryover.
- Your Nebraska tax return amounts for tax liability and the other credits listed in Part A.
- For credits received from an entity: its name, address, Nebraska ID number, federal ID number, and your share of the credit.
- For credits distributed to owners or beneficiaries: each recipient’s name, federal ID number or Social Security number, percentage share of income or ownership, and share of the credit. Attach a schedule if needed.
Keep contribution records for at least three years after claiming a credit or using a carryover.
How to file
Complete Form CDN and attach it to the applicable Nebraska return:
- Attach it to your income tax or financial institution tax return filed with the Nebraska Department of Revenue (DOR).
- Attach it to your premium tax return filed with the Nebraska Department of Insurance.
The text does not provide a filing mailing address or e-file instructions.
All claimants must complete Part A, lines 1 through 4. Individuals, corporations, fiduciaries that do not distribute income currently, and LLCs taxed as corporations must also complete the rest of Part A.
Complete Part B if you received a distributed credit from an entity. Complete Part C if you are a partnership, S corporation, fiduciary that distributes income currently, or LLC taxed as a partnership distributing the credit.
For Part A, line 15, claim the smaller of line 4 or line 14. Transfer that amount to the applicable return line listed on the form.
Common mistakes
- Leaving out Form CDN. The completed form must be attached to the applicable Nebraska return.
- Entering a negative amount on line 14. If lines 6 through 13 total more than line 5, enter zero on line 14.
- Carrying credits at an entity that must distribute them. Partnerships, S corporations, fiduciaries that distribute income currently, and LLCs taxed as partnerships must distribute all credits currently and enter zero on line 2.
- Missing amended-return requirements. If the credit was claimed on an original return, attach a Form CDN marked “Amended” to any amended income tax or financial institution tax return. If the carryover amount changes, amend all affected years.
- Discarding contribution records too soon. Keep them for at least three years after claiming a credit or using a carryover.
Questions people ask
Can I use unused credits if I received no new credit in 2024?
Yes. If you are claiming unused credit carried forward from 2019 through 2023 and no credit was granted in 2024, enter zero on line 1 and complete lines 2 through 16 where applicable.
How long can unused credit be carried forward?
Unused credit may be carried forward for the next five years after the credit was first granted.
Which contributions apply if I use a fiscal tax year?
Use this form for contributions made during the tax year that begins in 2024. The contribution must qualify as a charitable contribution deduction on your 2024 federal income tax return or be approved by DED.
Who can answer questions about the credit program?
Contact DED. The form lists Darin Lubke at 402-471-3116 or darin.lubke@nebraska.gov and directs readers to opportunity.nebraska.gov for more information. It specifically says not to contact DOR for this information.