ETC-A: Employer Tax Credit Application for Employing Convicted Felons (Revision)
Nebraska · Nebraska DOR · Used for tax years 2025
Form ETC-A is an application for certification of Nebraska’s nonrefundable employer tax credit for employing convicted felons. It reports eligible employees, conviction and hiring details, qualifying wages paid, and the tax credit requested.
Who files this form
Employers seeking approval for the Nebraska nonrefundable employer tax credit for employing convicted felons must file Form ETC-A. The employer must have employed someone convicted of a felony in Nebraska or another state.
The credit may be claimed on corporate, individual, or fiduciary income tax returns. An S corporation, partnership, or LLC filing as an S corporation or partnership cannot claim it unless the entity has elected to be subject to Nebraska income tax.
What you'll need
Have the following information ready to complete the application:
- Employer name, mailing address, Nebraska ID number or SSN, and FEIN.
- Type of Nebraska return that will claim the credit, taxable-year beginning and ending dates, and number of eligible employees.
- Each eligible employee’s name, SSN, hire date, dates wages were paid, and qualifying wages paid.
- Each employee’s felony conviction date, city, state, county, and whether the offense was state or federal.
- Authorized signer’s name, title, signature, date, and contact information, plus contact-person information.
If the signer is authorized through a power of attorney, that power of attorney must be on file with the Nebraska Department of Revenue (DOR).
How to file
- Complete Part B before Part A. List eligible employees and their qualifying wages. Qualifying wages are limited to $200,000 per employee and must have been paid within the first 12 months of employment.
- Transfer the total qualifying wages from Part B to Part A, line 3. Multiply line 3 by 10% to calculate the credit requested on line 4.
- Enter whole-dollar amounts only. Round amounts below 50 cents down and amounts from 50 through 99 cents up.
- Have the application signed by the owner, corporate officer, fiduciary, or another person authorized by a power of attorney on file with DOR.
- Submit the application through DOR’s secure file sharing system using the link printed on the form. The printed instructions also provide this mailing address:
Nebraska Department of Revenue
PO Box 94818
Lincoln, NE 68509-4818
The employer or the employer’s authorized representative must submit the application. File a separate application for each taxable year and retain a copy for your records.
Common mistakes
- Completing Part A first. The form says to complete Part B before entering information in Part A.
- Entering cents or changing the pre-printed zeros. Use whole-dollar amounts and leave the zeros in the cents column unchanged.
- Including too much in qualifying wages. The limit is $200,000 per employee, and only wages paid within the first 12 months of employment qualify.
- Submitting an incomplete application. DOR adjusts the application date to the date it receives all required information.
- Omitting an authorized signature. The application must be signed by one of the authorized individuals listed on the form.
Questions people ask
How much is the credit?
The nonrefundable credit is 10% of eligible wages paid during the taxable year within the employee’s first 12 months of employment. The credit cannot exceed $20,000 for one eligible employee. DOR will notify the employer of the certified credit amount.
Is there a limit on total credits approved?
Yes. DOR processes applications in the order received and approves up to $5 million in credits for each calendar year. If multiple complete applications arrive on the day available funds are exceeded, the remaining funds are prorated among qualified applications filed that day.
What if an employee leaves and is rehired?
Complete two lines in Part B if the employee is terminated and rehired before completing the first 12 months of employment. The combined wage dates for the initial hire and rehire cannot exceed 12 months, and only wages paid during the first 12 months of employment are eligible.
Can I opt out of email contact?
Yes. Write “Opt Out” on the line labeled “email address.” Providing an email address acknowledges that DOR may contact you by email and that you accept the related confidentiality risk. DOR sends confidential information by secure email or the State of Nebraska’s file share system.