Purpose. The purposes of the Nebraska Incentives Credit Computation, Form 3800N, are to:
• Identify the incentive program for which each tax credit is claimed;
• Identify the amount of tax credits used from each program;
• Identify the specific project from which the tax credits were received; and
• Distinguish between refundable and nonrefundable incentive tax credits.
Who Must File. Every taxpayer must complete the Form 3800N, to use the following credits:
• Nebraska Advantage Microenterprise credit;
• Renewable Energy Tax credit;
• Nebraska Advantage Rural Development Act credit;
• Nebraska Advantage Research and Development Act credit;
• New Markets Tax Credit (NMTC);
• Nebraska Historic Tax Credit (NHTC);
• Biodiesel Facility credit;
• Employment and Investment Growth Act (LB 775) credit; and
• Nebraska Advantage Act (LB 312) credit.
Note: When claiming nonrefundable credits, the credits should be used in the order listed above.
When and Where to File. The Form 3800N must be completed and attached to the income or financial institution tax return filed by an individual, corporation, partnership, S corporation, limited liability company, exempt cooperative, or fiduciary for which a credit is claimed.
Partners, shareholders, members, patrons, or beneficiaries who are allowed any distributive credits from a partnership, S corporation, limited liability company, cooperative, or fiduciary should complete lines 1 through 12 and 17. A copy of the Nebraska Schedule K-1N filed by the partnership, S corporation, limited liability company, cooperative, or fiduciary must be attached to the taxpayer’s Form 3800N. These credits may be used to reduce the taxpayer’s income tax liability. Any NMTC or NHTC can also be used to reduce the taxpayer’s insurance premium tax liability or financial institutions franchise tax liability. Credits passed through to the taxpayer by a partnership, S corporation, limited liability company, cooperative, or fiduciary are not refundable.
Records. All claimants must retain records for at least three years after filing the tax return claiming the credit. If the taxpayer will be utilizing the carryforward period to claim the credit calculated, the records supporting the original credit must be kept for at least three years after filing the last return on which the credit carryforward is used.