Nebraska · research and development · NE-RD-001
Nebraska Advantage Research and Development Credit
Publication revised September 24, 2026. Sourcebook page 177.
Credit amount / calculation
Generally 15% of the federal research credit attributable to Nebraska research; qualifying university research can receive enhanced treatment.
Business fit and eligible activity
Qualifying Nebraska research can generate a refundable credit. Qualified research activity. Ordinary production, routine quality control and an equipment purchase alone do not qualify.
Eligibility and practical use
A wood-products company can miss this credit by assuming that "research" means white coats and laboratories. In practice, qualifying work can arise in process engineering, product development, automation, drying, recovery, and software. A logging company has a narrower path, but equipment-control, software, or process-development work can sometimes qualify if it satisfies the same technical tests.
Illustrative business benefit
If the federal research credit attributable to Nebraska is $20,000, the ordinary state calculation is $20,000 x 15% = $3,000. Do not apply 15% directly to $200,000 of research spending. Yes; refundable individual income tax credit.
Timing / first action
Tax-year claim: document the eligible expense, hire or placed-in-service date and meet any separate certification deadline. Identify the technical uncertainty and start contemporaneous project records before trying to calculate the credit.
Official sources
- Nebraska Department of Revenue — Nebraska Advantage Research and Development Act (LB 312) (revenue.nebraska.gov)
Related programs
ImagiNE Nebraska Investment / Wage Credits
generally
Manufacturing expansion can earn investment and wage credits under an approved project.
Microenterprise Tax Credit
20% of increased investment
This credit is aimed below the scale of most headline economic-development programs.
Renewable Chemical Production Tax Credit
Production credit based on pounds of qualifying renewable
Potentially relevant when wood residuals are converted to qualifying renewable chemicals.
Clean Electricity Investment Credit (Internal Revenue Code §48E)
Generally
Potentially relevant when a forest-products facility owns qualifying zero-emission generation or energy-storage property.
Credit for Increasing Research Activities (Internal Revenue Code §41)
Regular research-credit method
A sawmill, secondary manufacturer or biomass business can qualify when it performs genuine technological experimentation to improve a product or process.
Rehabilitation Credit (Internal Revenue Code §47)
Generally
A forest-products company rehabilitating a certified historic mill or industrial building for income-producing use may qualify.