Short answer. You can claim both, and Nebraska is unusually tied to the federal credit: the Nebraska credit is 15 percent of the federal Section 41 credit you already computed, or 35 percent for research at a Nebraska college or university, apportioned to Nebraska. The federal credit isn't refundable, and since July 1, 2026 Nebraska's isn't either against income tax, though it can still be used for a refund of Nebraska sales and use taxes paid. Both rest on the same federal qualified-research records.
Key facts
| Claim both? | Yes, and Nebraska is computed from the federal credit |
|---|---|
| Federal rate | 20% regular / 14% ASC |
| Nebraska rate | 15% of the federal credit (35% university research) |
| Nebraska refundable? | Not against income tax from July 1, 2026; sales and use tax refund available |
| Forms | Form 6765 (federal) + Form 3800N (Nebraska) |
Nebraska is computed from your federal credit
Most states run their own calculation. Nebraska starts from the federal number you already have.
The Nebraska credit is 15 percent of the federal Section 41 credit you are allowed, or 35 percent for research conducted at a Nebraska college or university. There is no separate Nebraska base to calculate, so you compute the federal credit on Form 6765 first, then apply the Nebraska percentage to the portion apportioned to Nebraska.
Because Nebraska rides on the federal figure, the two credits are claimed together by design. A company doing 75 percent of its research in Nebraska applies the rate to 75 percent of its federal credit, and the Nebraska amount is one multiplication once the federal number is set.
Federal Section 41 vs. Nebraska, factor by factor
Nebraska is a percentage of the federal credit, with one difference: it can refund Nebraska sales and use tax.
| Factor | Federal Section 41 | Nebraska |
|---|---|---|
| What it is | Credit for increasing research activities | Nebraska Advantage Research and Development credit |
| How it is computed | Your QRE over a base | 15% of the federal credit (35% university research) |
| Credit rate | 20% regular / 14% ASC | 15% of the federal credit, apportioned to Nebraska |
| Refundable | No - a QSB may offset up to $500,000 of payroll tax under Section 41(h) | Not against income tax from July 1, 2026; can refund Nebraska sales and use tax paid |
| Where research must occur | United States | Nebraska only |
| How you claim it | Form 6765 with the federal return | Form 3800N with the Nebraska return |
| Claim alongside the other? | Yes, compute the federal credit first | Yes, it is a slice of the federal number |
| Documentation | Four-part test and QRE substantiation (Treas. Reg. 1.41-4) | Same federal QRE, apportioned to Nebraska activity |
The difference that matters: a sales and use tax refund
The federal credit reduces tax you owe. Nebraska can also give back sales and use tax you paid.
Since July 1, 2026, when LB 901 (2026) struck the refundable income tax option from Neb. Rev. Stat. 77-5804, the Nebraska credit can be used against Nebraska income tax liability or to obtain a refund of Nebraska state sales and use taxes paid. The federal credit is nonrefundable, though a qualified small business can offset up to $500,000 of payroll tax under Section 41(h).
LB 901 does not say how it treats Nebraska credits earned in earlier years but claimed after July 1, 2026, and the Department of Revenue's worksheet and FAQ still describe the credit as refundable. Confirm the treatment of those credits with your CPA or the Department of Revenue. Which option fits your position, and whether you qualify at all, is a determination for your CPA.
One evidence base for both
Because Nebraska is built from the federal credit, the federal records are the whole story.
Nebraska starts from the federal Section 41 credit, so the four-part test analysis and the wage, contractor, and supply records that substantiate the federal claim under Treas. Reg. 1.41-4 are exactly what support the Nebraska figure, apportioned to in-state activity. There is no second evidence base to build.
R&D Binder documents the federal Section 41 four-part test that both credits depend on, with Nebraska handled as a state add-on from the same records. Eligibility and the choice of credits remain a determination for your CPA.
More on Nebraska's R&D credit
The full state overview, the federal Section 41 work it builds on, and related state guides:
Sources
Every claim on this page traces to a primary authority. Each source below is independent and verifiable.
- Nebraska Advantage Research and Development Act (Neb. Rev. Stat. 77-5801 to 77-5808) - Nebraska Legislature
- Nebraska Department of Revenue, Research and Development incentive (Form 3800N) - Nebraska Department of Revenue
- Nebraska LB 901 (2026), section 37, amending Neb. Rev. Stat. 77-5804 (slip law) - Nebraska Legislature
- Neb. Rev. Stat. 77-5804 (current text, as amended by LB 901) - Nebraska Legislature
- 26 U.S.C. § 41 (credit for increasing research activities) - Cornell Law School, Legal Information Institute
- IRS, About Form 6765 - Internal Revenue Service
- Treas. Reg. § 1.41-4 (recordkeeping and substantiation of qualified research) - Cornell Law School, Legal Information Institute
Get documentation built to survive an exam
R&D Binder produces the federal Section 41 binder and the Nebraska state workpaper from one engagement, both built to survive an exam.