CDN: Community Development Assistance Act Credit (2025)
Nebraska · Nebraska DOR · Used for tax years 2025
Nebraska Form CDN computes the Community Development Assistance Act credit claimed for 2025. It reports approved credits, unused credits carried over from prior years, and credits received from or distributed to owners and beneficiaries.
Who files this form
Eligible claimants must file Form CDN to claim the Community Development Assistance Act credit or distribute it to their owners.
The credit is for contributions to community betterment projects approved by the Nebraska Department of Economic Development (DED). Individuals or business firms must have been granted the credit by DED.
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 ready, as applicable:
- The name on your return and your Social Security number or Nebraska ID number.
- The credit amount approved by DED and information about unused credits from 2020 through 2024.
- Your Nebraska return, including the tax liability and other credit amounts needed for Part A.
- For credits received from another 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 records of contributions 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 return:
- Attach it to your income tax or financial institution tax return filed with the Nebraska Department of Revenue.
- Attach it to your premium tax return filed with the Nebraska Department of Insurance.
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. Partnerships, S corporations, fiduciaries that distribute income currently, and LLCs taxed as partnerships must complete Part C to distribute the credit.
For 2025, line 16 is the smaller of line 4 or line 15. Transfer it to the applicable return line shown on Form CDN.
If you amend an income tax or financial institution tax return on which the credit was originally claimed, attach a Form CDN marked “Amended.” If the carryover amount changes, file amended returns for all affected years.
Common mistakes
- Leaving the foreign adversarial company (FAC) question unanswered. The form warns that this will result in denial or delay in processing the credits.
- Including ineligible FAC credits. If the taxpayer is an FAC, do not complete the rest of the form. If credits come from an FAC, do not claim those credits. Enter only credits from entities that are not an FAC.
- Entering a negative amount on line 15. Enter zero if the total of lines 6 through 14 exceeds line 5.
- Carrying credits forward 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 attachments. Attach Form CDN marked “Amended” when required, and amend all affected years if the carryover changes.
Questions people ask
Can I carry unused credits forward?
Unused credit may be carried forward for the next five years after the credit was first granted. Entities required to distribute all credits currently must enter zero on line 2.
What if I received no new credit in 2025?
If you are using Form CDN only to claim unused credit carried forward from 2020 through 2024, enter zero on line 1 and complete lines 2 through 17 where applicable.
Which contributions belong on the 2025 form for a fiscal-year taxpayer?
Use this form for contributions made during the tax year that begins in 2025. The contribution must qualify as a charitable contribution deduction on the individual’s or business firm’s 2025 federal income tax return, or be approved by DED.
How is the credit divided among owners or beneficiaries?
For Part C, multiply the amount on line 4 by each recipient’s percentage share of income or ownership.
Where can I get more information about the credit program?
Contact the Nebraska Department of Economic Development at 245 Fallbrook Blvd, Suite 002, Lincoln, Nebraska 68521-4666, or visit opportunity.nebraska.gov. The form says not to contact the Department of Revenue for additional information about this credit program.