Nebraska Corporation Income Tax Booklet - Forms and Instructions

Corporation Income Tax Booklet - Forms and Instructions 
Form 1120N Booklet
2024

Nebraska

Corporation
Income Tax Booklet
Included in this Booklet are:

Form 1120N;
Schedules A, I, II, III, and IV;
Forms 7004N and PTC; and
Use Tax information.
Electronic filing and payment options are available.

Questions?

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2024 Nebraska Corporation Income Tax Return
Instructions

What’s New
Corporate Tax Rate Change (LB 432). For the 2024 taxable year the corporate tax rate for
Nebraska taxable income in excess of $100,000 is reduced from 7.25% to 5.84%. The corporate
rate for the first $100,000 of Nebraska taxable income remains 5.58%
School Readiness Tax Credit (LB 754). Beginning with tax year 2024, a nonrefundable income
tax credit is available to persons who own or operate an eligible childcare and education
program that serves children who participate in the childcare subsidy program established in
Neb. Rev. Stat. § 68-1202. The credit to the provider is equal to the average monthly number
of subsidy children who attend the provider’s program multiplied by a dollar amount based
on the quality scale rating of the eligible program: A) $1,200 for a Step Five program; B)
$1,000 for a Step Four program; C) $800 for a Step Three program; D) $600 for a Step Two
program; and E) $400 for a Step One program. This credit is available to individuals, corporate
taxpayers, and fiduciaries. The providers must first apply to the Nebraska Department of
Revenue (DOR) to receive the credits. The total amount of credits for the program is limited
to $7.5 million per tax year. This credit can be claimed by an S corporation or partnership
electing to pay tax.	
Opportunity Scholarships Act (LB 753 and LB 1402). Beginning with tax year 2024 and
until October 31,2024, individuals and entities that make cash contributions to a certified
scholarship-granting organization may qualify for a nonrefundable tax credit. Taxpayers
must notify the scholarship-granting organization of their intent to make a contribution
and the amount to be claimed as a credit. The nonrefundable credit is equal to the lesser of:
u	
The total amount of contributions made to scholarship-granting organization during
the tax year;
	 u	50% of the income tax liability of the taxpayer for such year; or
	 u	$100,000, or $1 million for estates and trusts.
A taxpayer may only claim a credit on the portion of the contribution that was not claimed
as a charitable deduction on their federal return.
Any unused credit may be carried forward for the next five years after the credit was first
granted. This credit can be claimed by an S corporation or partnership electing to pay tax.
If a shareholder, beneficiary, or member is claiming the credit based on a distribution, the
credit is first limited by the tax lability of the pass-through entity.
Child Care Tax Credit Act (LB 754). Beginning with the 2024 tax year, a nonrefundable credit
is available to persons and entities subject to the Nebraska income tax that make qualifying
contributions under the Act and apply with DOR.
The credit is equal to 75% or 100% of the qualifying contribution, not to exceed $100,000
for any single year. The credit is equal to 100% of the contribution if made to:
u	
An eligible program with a physical presence in an opportunity zone in Nebraska
designated pursuant to the federal Tax Cuts and Jobs Act, Public Law 115-97; or
u	An eligible program with at least one child enrolled in the childcare subsidy program
established pursuant to Neb. Rev. Stat. §§ 68-1202 and 68-1206, and the childcare
provider is actively caring and billing for the child.
If the above is not met, the credit is equal to 75% of the qualifying contribution.
Any unused credits may be carried forward to the next five tax years after the credit was first
used. A taxpayer may only claim a credit on the portion of the contribution that was not
claimed as a charitable contribution on their federal return. This credit can be claimed by an
S corporation or partnership electing to pay tax. The credit is distributable to beneficiaries
of estates and trusts.
Nebraska Biodiesel Tax Credit Act (LB 1095 and LB 937). Beginning with the 2024 tax year,
retail dealers of biodiesel may be eligible for a refundable tax credit. The tax credit equals
14 cents multiplied by the total number of gallons of biodiesel sold on a retail basis during
the prior calendar year through a motor fuel pump located at the retailer dealer’s motor fuel
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site. The credit is calculated only on the biodiesel portion of any product sold by the retail
dealer that is a blend of biodiesel and diesel or other fuel. The tax credit may be used against
any Nebraska income tax.
To receive the credit a retail dealer must file a Biodiesel Tax Credit Application, Form BDTC-A
with DOR from January 1 to April 15. A separate application must be filed for each calendar
year. DOR may approve up to $1 million in tax credits in Nebraska state fiscal year 2024-25
and $1.5 million for Nebraska state fiscal years after 2024-25. If the total amount of credits
requested in any Nebraska state fiscal year exceeds the credit limit, DOR will allocate the tax
credits proportionally based upon the amounts requested.
Creating High Impact Economic Futures (CHIEF) Act (LB 1344). Effective January 1, 2025,
the Community Development Assistance Act (CDAA) is replaced by the CHIEF Act.
Under the CHIEF Act, individuals and entities that contribute to community betterment
organization programs or projects certified for tax credit status by the Nebraska Department
of Economic Development during a tax year are eligible for the nonrefundable credit. The
credit for contributions made by an individual is equal to 100% of the contribution. The
credit is equal to 50% of the contribution for all other contributors. Contributions must be
made after January 1, 2025. Any unused credits may be carried forward to the next five tax
years after the credit was first allowed.
School District Property Tax Credit (LB 34). LB 34 enacted in the 2024 special session created
the School District Property Tax Relief Act. This act provides property tax relief for school
district taxes directly on the property tax statement reducing property taxes before they are
paid, instead of refunding taxes after they are paid.
For tax years beginning on or after January 1, 2024, the Form PTC will only be used to claim
a credit for community college property taxes paid.
Medical Debt Relief Act (LB 937). Beginning with tax year 2024, corporations can reduce the
federal taxable income on the Nebraska Schedule A by the amount of contributions made to
the Medical Debt Relief Fund, to the extend not deducted for federal income tax purposes.

Important Information for All Filers
Purpose. The instructions in this booklet provide guidance in completing the most common
Nebraska corporation income tax forms and schedules. This booklet is intended to be useful to
the greatest number of taxpayers. Nothing in these instructions supersedes, alters, or otherwise
changes any provisions of the Nebraska tax code, regulations, rulings, or court decisions.
We encourage the preparer of any Corporation Income Tax Return, Form 1120N, to review
applicable Nebraska law regarding any issue that may have a material effect on this return.
Nebraska law and other useful information may be found at revenue.nebraska.gov.
Income Subject to Nebraska Taxation. Nebraska income tax applies to the portion of the
corporate taxpayer’s taxable income derived from or attributable to sources within Nebraska.
A corporate taxpayer that is subject to tax in another state must apportion its income, unless
approval has been granted by the Tax Commissioner for an alternative method prior to
filing the return.
If a corporate taxpayer engaged in business in Nebraska is not subject to tax in another state,
its entire taxable income must be reported to Nebraska.
Combined Return. When a group of corporations conducts a unitary business, a single combined
return must be filed reporting the income of the entire group. A unitary group engaged in
business within and without Nebraska will determine its Nebraska income using a single
factor, sales only, apportionment formula. See the Nebraska Schedule I — Apportionment
for Multistate Business instructions for additional information.
Enter All Amounts as Whole Dollars. Do not include cents on the return or schedules. Do not
change the pre-printed zeros in the cents column of the Form 1120N or schedules. Round
any amount from 50 cents to 99 cents to the next higher dollar. Round any amount less than
50 cents to the next lower dollar.
Penalties and Interest. Either or both may be imposed under the following conditions:

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	 u	Failing to file a return and pay the tax due on or before the due date;
	 u	Failing to pay the tax due on or before the due date;
											u	Failing to file an amended Nebraska income tax return when required;
	 u	Preparing or filing a fraudulent income tax return; or
	 u	Understating income on an income tax return.
Filing a false or fraudulent Nebraska return is subject to penalty, even if the amounts reported
are taken from your federal return. Unpaid tax is subject to interest at the statutory rate of
8% from the original due date to the date the tax is paid. See the DOR Interest Rate Assessed
on State Taxes Revenue Ruling for applicable interest rates.
Reporting Changes or Corrections. If information on a Nebraska corporation income tax
return previously filed is incorrect, an Amended Nebraska Corporation Income Tax Return,
Form 1120XN, must be filed. When filing an amended return, remember:
									u	Changes made by the IRS or another state must be reported to DOR within 60 days; and
									u	You must attach a copy of the related federal or other state amended return and all
related schedules or other documentation to explain the changes shown on the amended
Nebraska return.
Any corporation filing an amended return with the IRS, resulting in a credit or refund, must
report the change or correction within 60 days after receiving proof that the IRS accepted the
changes made on the federal  return. The Nebraska amended return must include documentation
showing that the IRS accepted the changes made on the federal return.
Corporate taxpayers are required to provide DOR with a copy of every executed Federal
Form  872, Consent to Extend the Time to Assess Tax; Form 872-A, Special Consent to
Extend the Time to Assess Tax; or any other federal form used to extend the time to assess
income taxes. If copies of these federal forms are not provided to DOR within 30 days after
they are executed, DOR may issue a notice of deficiency determination within one year after
discovery of the extension by DOR and may limit the time period for which interest is paid
on a refund.
Nebraska Extension of Time. An extension to file may only be obtained by:
	 u	Attaching a copy of a timely-filed Application for Automatic Extension of Time to File
Certain Business Income Tax, Information, and Other Returns, Federal Form 7004,
to the Nebraska return when filed;
	 u	Attaching a schedule to the Nebraska return listing the federal confirmation number
and providing an explanation that the electronic request for automatic federal extension
was not denied; or
	 u	Filing a Nebraska Application for Extension of Time to File Corporation, Fiduciary,
or Partnership Return, Form 7004N, on or before the due date of the return, when you
need to make a tentative Nebraska payment or when a federal extension is not being
requested. When a federal extension of time has been granted, and additional time is
necessary to file the Nebraska return, the Nebraska Form 7004N must be filed on or
before the date the federal extension expires. Remember to attach proof of the federal
extension to the Form 7004N.
Failure to attach the applicable extension document may result in a late filing penalty. An
extension of time only extends the date to file the return. It does not extend the due date
to pay the tax. Any tax not paid by the original due date is subject to interest. By timely
requesting an extension of time to file your federal return using the Federal Form 7004, you
are granted an automatic Nebraska extension for the same number of months granted by the
IRS. When a federal extension of time has been granted and additional time is necessary to
file the Nebraska return, the Nebraska Form 7004N must be filed on or before the date the
federal extension expires. An extension of time cannot exceed a total of seven months after
the original due date of the return.
Accounting Methods. The accounting method used for federal income tax purposes must be
used for Nebraska income tax purposes. A taxpayer may not change the accounting method
used to report income in prior years, unless the change is approved by the IRS. A copy of this
approval must accompany the first return that shows the change in the method of accounting.
Federal Return. A copy of the federal return and supporting schedules, as filed with the IRS,
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must be attached to this return. This includes, at a minimum, a copy of the first five pages,
Schedule  D, Form 4797, and other supporting schedules of the Federal Form 1120. If a
consolidated federal return is filed, a copy of the consolidating schedules or workpapers for
income and expenses, cost of goods sold, and balance sheets, as well as the Affiliations Schedule,
Form 851, must also be attached. Provide copies of schedules and other information that
support the numbers reported on the Nebraska return. Other voluminous information that
is part of the federal return filed, but that is not directly related to the Nebraska reporting,
may be kept by the taxpayer, but must be made available upon request. A pro-forma federal
return is not acceptable. The Nebraska return is based upon the actual federal return as filed
or prepared for filing.
Estimated Income Tax Payments. Estimated income tax payments must be made by every
corporation subject to taxation under the IRC, with income derived from Nebraska, if the
Nebraska income tax liability can reasonably be expected to exceed allowable credits by $400
or more. For additional information, see the 2024 Nebraska Corporation Estimated Income
Tax Payment Voucher Booklet.
Underpayment of Estimated Income Tax Penalty. A corporation may owe a penalty if the
amount of tax due, after allowable credits, is $400 or more.
If the amount of tax due is $400 or more, the corporation must complete an Underpayment
of Estimated Tax for Corporations, S corporations, or Partnerships, Form 2220N, to calculate
any applicable penalty. Taxpayer can include the 2023 school district property tax credit in
the penalty calculation formula.
A corporation may reduce or eliminate the penalty by using the annualized income or adjusted
seasonal installment method. To use one or both of these methods to calculate one or more
required installments, recalculate (and attach) the Federal Form 2220, Schedule A, “Adjusted
Seasonal Installment Method and Annualized Income Installment Method” using Nebraska
income and other Nebraska amounts. Enter the corresponding amount from the recalculated
Federal Schedule A on the appropriate lines of the Form 2220N.
Adjustment of Overpayment of Estimated Income Tax. A corporation that overpaid estimated
income tax must use the Corporation Application for Adjustment of Overpayment of Estimated
Income Tax, Form 4466N, to apply for refund of the overpayment when the overpayment is:
	 u	At least 10% more than the expected tax liability calculated on the Form 4466N; and
	 u	At least $500.
Form 4466N must be filed by the 15th day of the third month after the end of the tax year
and before the corporation files its corporation income tax return. A Form 4466N filed after
this date will not be considered. An extension of time to file the corporation income tax return
will not extend the time for filing Form 4466N.

Use Tax 	 					A corporation may be subject to use tax. A corporation owes use tax when the proper sales
tax has not been paid on purchases delivered into Nebraska. This often occurs when purchases
are made from out-of-state, mail order, or Internet sellers. Use tax is also due when items
purchased for resale are withdrawn from inventory for business or personal use.
Example 1.
The corporation purchased a computer from a seller in South Dakota over the Internet
for $1,570 plus $30 shipping and handling charges. Both charges are taxable. The
computer is shipped to the corporation in Scottsbluff, Nebraska and no tax is charged
or collected by the seller. The state tax is $88 ($1,600 X 5.5%) and the local tax is $24
($1,600 X 1.5%). The total use tax owed is $112 ($88 + $24 = $112).
Example 2.
A repair shop in Scottsbluff, Nebraska provides motor vehicle repair service. The repair
shop also owns a tow truck used for towing customers’ motor vehicles needing repair.
The shop purchases oil and oil filters tax exempt for resale using the Nebraska Resale
or Exempt Sale Certificate, Form 13. When oil and oil filters are removed from sales
tax exempt inventory and used to change the oil in the business-owned tow truck, state
and local use tax is due on the cost of the oil and oil filters.
For additional information, see the Nebraska Use Tax Information Guide.

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Purpose of Form 		 The Nebraska Corporation Income Tax Return, Form 1120N, is used to report income,
gains, losses, deductions, and credits, and to calculate the income tax liability of the
corporate taxpayer.

Who Must File?
The Nebraska Corporation Income Tax Return, Form 1120N, must be filed by every
corporation engaged in business in Nebraska, or having sources of income from Nebraska
and subject to federal corporation income tax. This includes:
									u	
Cooperative organizations. Cooperative organizations must file Form 1120N. Exempt farm
cooperatives must attach their U.S. Income Tax Return for Cooperative Associations,
Form 1120-C. Cooperatives may exclude patronage dividends, dividends on capital
stock, and nonpatronage income allocated to patrons that are allowable deductions
or exclusions for federal income tax purposes.
									u	Exempt organizations. All exempt organizations required to file a federal return and
pay tax at the federal corporation income tax rates on unrelated business income are
required to file the Form 1120N.
Corporations that must file a different Nebraska return:
											u	S corporations. Corporations that have elected to file under Subchapter S, as defined
by IRC § 1361, file a Nebraska S Corporation Income Tax Return, Form 1120-SN.
											u	Financial institutions. Institutions that are chartered or qualified to do business in
Nebraska, or maintain a permanent place of business in Nebraska and actively solicit
deposits from residents of Nebraska must file a Nebraska Financial Institution Tax
Return, Form 1120NF.

When and Where to File
This return must be filed on or before the date the related federal income tax return is due.
Use the Federal/State e-file program to e-file both federal and state tax returns. Or mail the
Form 1120N to:
											Nebraska Department of Revenue
											PO Box 94818
											Lincoln, NE 68509-4818

How to Complete Form 1120N
Tax Period. A 2024 Form 1120N must be used to file for the calendar year 2024, or a fiscal
year beginning in 2024. Space is provided at the top of the return to enter the beginning and
ending dates for short-period or fiscal-year filers. The taxable year for Nebraska must be the
same as the taxable year used for the federal income tax return.
If a corporation changes its federal taxable year, it must also change its Nebraska taxable
year. A copy of the approval from the IRS to change accounting periods must accompany
the first return that shows the change.
Business Classification Code. Enter the six-digit code that best describes the corporation’s
principal business activity in Nebraska. Carefully review the business classification codes
before you select one.
Principal Business Activity in Nebraska. Enter the principal business activity of the corporation
from the Business Classification Code listing.
Federal ID Number. Enter the Federal ID number assigned to the corporation by the IRS.
Nebraska ID Number. Enter the Nebraska ID number assigned to the corporation by DOR.
Corporations that do not have a Nebraska state ID for corporate income tax should e-file
using their Nebraska income tax withholding or sales tax number. The prefix (for example, 24-)
is not part of the state ID number and should not be included in the number. Corporations
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that do not have an existing Nebraska state ID, should apply using DOR’s Online Nebraska
Tax Application.
Final Return. Check the “Final Return” box if the corporation will not file a Nebraska
corporate return after the 2024 tax year. This may occur when the corporation ceases to
exist due to dissolution or merger, or when the corporation will be included in a new unitary
group of corporations filed under a different Nebraska ID number.
Name Change. If the corporation changed its name since its last filing, check the “name
change” box. If the corporation changed its Federal ID number, it must file a Nebraska Tax
Application, Form 20 to obtain an new Nebraska ID number.
Corporation Filing Status. All taxpayers must complete this portion of the return and answer
all questions applicable to the corporation’s status.
Question A. Check “Yes” if any of the following conditions apply:
	 u	The corporation was included in a federal consolidated return;
	 u	The corporation owns 50% or more of another corporation; or
	 u	The corporation is owned at least 50% by another corporation.
	 If none of the above conditions apply, check “No” and skip questions B, C, and D.
Question B. Check “Yes” if this return includes the income, deductions, or credits of all
corporations with common ownership.
Check “No” if one or more of the corporations with common ownership are not included
in this return.
Question C. Check “Yes” if a return filed in any other state included the income, deductions,
or credits of more than one corporation.
Check “No” if the returns filed in all other states included only your corporation.
Question D. Under Nebraska law, a unitary group generally encompasses all corporations
included in the federal consolidated income tax return. Therefore, only under extremely unusual
circumstances may a corporation compute its Nebraska liability using the “separate report
by a member of a controlled group of corporations” method. Documentation supporting
the separate company filing should be attached to the Nebraska return when filed. This
documentation must show that the corporation is not part of a single economic unit as defined
in section .08 of Corporate Income Tax Regulation 24-058, Definitions.

Line 1 							Federal Gross Sales or Receipts, Less Returns and Allowances. Enter the amount of federal
gross sales or receipts reported on Federal Form 1120, less returns and allowances. If the
corporate taxpayer is filing a combined Form 1120N, enter the amount of combined gross
receipts or sales less returns and allowances from Nebraska Schedule IV.

Line 2 							Federal Taxable Income (FTI). Enter the federal taxable income. A unitary group must enter
the amount from line 30, Nebraska Schedule IV.

Line 3 							Adjustments Increasing FTI. Enter the amount from line 10, Nebraska Schedule A.
The federal deduction for state income tax is not an adjustment increasing federal
taxable income.
State and local government bond interest and dividend income should be included on line 3.
See the instructions for line 1, Nebraska Schedule A.

Line 4 							Adjustments Decreasing FTI. Enter the amount from line 21, Nebraska Schedule A.
Line 5								Adjusted FTI. Enter line 2 plus line 3 minus line 4.
Line 6								Nebraska Taxable Income Before Nebraska Carryovers. If all of the income earned by the
corporation is derived from Nebraska sources, enter the amount from line 5 on line 6.

Corporate taxpayers that derive income from sources within and without Nebraska and are
taxable in another state, must enter the amount from line 3, Nebraska Schedule I, Form 1120N.

Line 7								Nebraska Capital Loss Carryover. Enter the allowable Nebraska capital loss carryover.
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For a multistate taxpayer, a Nebraska capital loss consists of the loss on property that was
used by the unitary business that did business in Nebraska, multiplied by the Nebraska
apportionment factor for the year of the loss. If the corporate taxpayer reported a capital
loss on corporate stock or other assets, the income from which was not previously treated as
income apportionable to Nebraska, the loss cannot be treated as a Nebraska loss. Capital loss
carryovers may only be deducted to the extent of capital gains in the year of the deduction.
Attach a detailed schedule that shows the computation of the capital loss carryover along
with copies of the applicable Federal Schedule D to substantiate the Federal capital (loss)/
gain. A Nebraska capital loss may only be carried forward, and only for a maximum period of
five tax years.

Line 8 							Nebraska Taxable Income After Nebraska Capital Loss Carryover. Enter line 6 minus line 7.
Line 9								Nebraska Net Operating Loss Carryover. Enter the allowable Nebraska net operating loss
(NOL) carryover. The amount allowable is based on the loss previously reported to Nebraska,
and is not based on a percentage of the federal carryover. Any net operating loss can only
be carried forward. An NOL incurred in tax years beginning on and after January 1, 2014,
may be carried forward for a maximum period of 20 tax years. Nebraska imposes limitations
on the use of a NOL carryforward after certain reorganizations and mergers, when a NOL
incurred in years after 2017 is carried forward to a year after 2020, and when a corporation
with a Nebraska NOL carryforward becomes a member of a unitary group. For additional
information, see Corporate Income Tax Regulation 24-060, Net Operating Losses and Capital
Losses. If any of the limitations apply to the NOL carryforward reported on this return,
attach a schedule showing the computation of the allowable carryforward.
Attach a Nebraska Corporation Net Operating Loss Worksheet showing the calculation of
the amount of Nebraska net operating loss carryover. If the Nebraska NOL carryforward
was increased due to reclassifying part or all of the charitable contribution carryforward,
details of the reclassification and the NOL modification must be provided.

Line 10							 Net Nebraska Taxable Income. Enter line 8 minus line 9.
Line 11							Nebraska Tax. Use the following tax rate schedule to calculate the amount of total Nebraska
tax to enter on line 11.

2024 Tax Rate Schedule
If Net Nebraska Taxable		
Income from line 10 is —
	

Over	

	$	 0	
	

But Not Over	
$100,000	

$100,000			

Tax Rate is	
5.58%	

On Excess Over
$	 0

$5,580 + 5.84%		 $100,000

The tax rate is the rate in effect on the first day of the corporation’s taxable year. Corporations
filing on a fiscal-year basis or filing a short-period return will compute the tax liability for
the entire taxable period by using the tax rate in effect on the first day of the taxable period.
A corporation using a 52-53 week fiscal year beginning during the last week in December
must use the rate in effect on the following January 1st.
Insurance Companies. Check the box to indicate you are an insurance company. The tax rate
used by an insurance company is the lesser of the rates listed above, or the corporation income
tax rate imposed by the state or country where the insurance company is domiciled, provided:
	 u	The insurance company can show the Tax Commissioner that it is domiciled in a state
other than Nebraska, or out of the country; and
	 u	The state or country of domicile imposes on Nebraska domiciled insurance
companies a retaliatory tax against Nebraska’s corporation income tax under
Neb. Rev. Stat. § 77‑2734.02.

Line 12 							 Premium Tax Credit. Enter the total amount of premium taxes paid (not accrued) by the
corporate taxpayer in this taxable year. These taxes include:

	 u	Premium taxes paid to the Nebraska Department of Insurance (NDOI) under
Neb. Rev. Stat. §§ 77-908 and 81-523; and
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	 u	Assessments paid to the NDOI for the Comprehensive Health Insurance Pool that are
allowed as an offset against any related premium and related retaliatory tax liability
under Neb. Rev. Stat. § 44-4233.
Premium taxes do not include amounts shown on the NDOI annual tax return as fees or the
Workers’ Compensation Court cash fund tax.
	 Example 3.
An insurance company made the following 2024 estimated premium tax payments and
payments with its 2023 and 2024 NDOI returns.

	 Tax	

	 Year	

Payment	
Type	

Payment	
Date	

Payment	
Amount	

	2023	

Payment with return	

March 1, 2024	

$3,000	

	Less: Fees included on the 2023 return	

2024 Premium
Tax Credit

100	

$ 2,900

	2024	

Estimated	

April 15, 2024	

4,000	

4,000

	2024	

Estimated	

June 15, 2024	

4,000	

4,000

	2024	

Estimated	

Sept. 15, 2024	

4,000	

4,000

	2024	

Payment with return	

March 1, 2025	

4,000	

0

	Total				

$14,900

In this example, the insurance company will enter $14,900 on line 12 as a credit for premium
taxes paid.

A corporation claiming this credit must attach a copy of the NDOI annual tax return related
to any payment claimed as a credit for premium taxes paid. A schedule listing the date and
amount of payment and the payee must also be attached.
Amounts paid by an electric cooperative organized under the Joint Public Power Authority
Act, Neb. Rev. Stat. § 70-1401, as in lieu of intangible tax, may also be included on this line.

Line 13 							Employer’s credit for expenses incurred for TANF (ADC) recipients. Enter the total credit
from line 2, Form TANF.

Line 14							School Readiness Tax Credit for providers. Enter the amount of the credit from the tax credit
certification issued by DOR. A copy of the tax credit certificate must be attached to this return
when filed. For more information about this credit, go to School Readiness Tax Credit Act.

Line 15							Community Development Assistance Act Credit. The Nebraska Community Development

Assistance Act credit is allowable for contributions to approved projects of community
betterment organizations recognized by the Nebraska Department of Economic Development
(DED). Attach the 2024 Nebraska Community Development Assistance Act Credit
Computation, Form CDN, to the Form 1120N. Corporations do not need to attach a copy of
the Form 1099NTC. DOR will receive the Form 1099NTC information directly from DED.
For more details regarding this credit, contact:
	
	
	
	

Nebraska Department of Economic Development
245 Fallbrook Blvd, Suite 002
Lincoln, Nebraska 68521
https://opportunity.nebraska.gov/programs/community/cdaa/

Line 16 							Form 3800N Nonrefundable Credit. Enter the total nonrefundable tax credits reported on 		
the Nebraska Incentives Credit Computation, Form 3800N. Attach a copy of Form 3800N
and any supporting schedules.

Line 17 							Nebraska Employer Tax Credit for Employing Convicted Felons. Enter the certified credit

amount and the certificate number from the Nebraska Employer Tax Credit Application for
Employing Convicted Felons, Form ETC-A.

Line 18 							Opportunity Scholarships Act Credit for contributors. Enter the lesser of the amount of cash

contributions made to scholarship-granting organizations, 50% of the income tax liability
(line 11, Form 1120N), or $100,000. A corporation may only claim a credit on the portion
of the contribution that was not deducted as a charitable contribution on its federal return.

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Line 19 							Child Care Tax Credit for contributors. Enter the child care tax credit and certificate number

from Form CCTC-A. A corporation may only claim a credit on the portion of the contribution
that was not deducted as a charitable contribution on its federal return.

Line 20 							Creating High Impact Economic Futures (CHIEF) credit. For more details regarding this
credit, contact:
	
	
	
	

Nebraska Department of Economic Development
245 Fallbrook Blvd, Suite 002
Lincoln, Nebraska 68521
https://opportunity.nebraska.gov/programs/incentives/chief/

Line 21 							Total Nonrefundable Credits. Enter the total of lines 12 through 20.
Line 22 							Nebraska Tax After Nonrefundable Credits. Subtract line 21 from line 11. If line 21 is more

than line 11, enter zero. Any excess will not be allowed as an overpayment on line 34; nor
may it be used as a carryback or carryover to other taxable years.

Line 23							Form 3800N Refundable Credit. Enter the total refundable tax credits reported on Form
3800N. Attach a copy of Form 3800N and any supporting schedules.

Line 24 							Tax Deposited With Form 7004N. Enter the amount of the tentative tax payment entered on
line 11 of the Form 7004N.

Line 25							2024 Estimated Income Tax Payments. Enter the total 2024 estimated income tax payments,
less any Form    4466N adjustment. Combined filers must complete and attach Nebraska
Schedule III.

Line 26 							Beginning Farmer Credit. Enter the amount of Beginning Farmer credit from the Statement of

Nebraska Tax Credit, Form 1099BFC. The Beginning Farmer credit is available to owners of
agricultural assets, when the agricultural assets are rented to qualifying beginning farmers or
livestock producers. Any claimant eligible for the credit will receive a copy of the Statement
of Nebraska Tax Credit, Form 1099BFC, from the Nebraska Department of Agriculture.
Corporations do not need to attach a copy of the Form 1099BFC. DOR will receive the
Form 1099BFC information directly from the Nebraska Department of Agriculture.
For more details regarding this credit, contact:
	 Nebraska Department of Agriculture
	 PO Box 94947
	 Lincoln, NE 68509-4947
	402-471-4876
	 nextgen.nebraska.gov

Line 27 	 						Nebraska Income Tax Withheld. Enter the amount of Nebraska withholding from

Form 1099‑MISC or Form 1099-NEC. Construction contractors are required to withhold
5% of any payment or payments exceeding $600 made to construction subcontractors that are
not registered on the Nebraska Department of Labor’s Contractor Registration Database. If
an amount was withheld from your corporation under this provision, a credit for the amount
withheld is claimed on line 27.

Line 28							Credit for Community College Property Taxes. Enter the amount from line 1, Form PTC and
attach Form PTC.

Line 29							 PTET Credit. Enter the name, Nebraska ID Number, and amount of pass-through entity tax

(PTET) credit received from a partnership in which you hold an ownership interest. Attach
a schedule if you received the credit from more than one partnership. Also attach a copy of
the Nebraska Schedules K-1N supporting the credit claimed.

Line 30							Total Refundable Credits and Payments. Enter the total of lines 23 through 29.
Line 31							 Tax Due. Enter the result of line 22 minus line 30. If the amount is less than zero, enter zero.

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Line 32 							Penalty for Underpayment of Estimated Income Tax. Use the Underpayment of Estimated

Tax for Corporations, S corporations, and Partnerships, Form 2220N, to determine if the
corporation owes this penalty. A Form 2220N must be completed if the Nebraska tax less
allowable credits is greater than $400. If the corporation is required to complete Form 2220N,
enter the amount of penalty from line 20, Form 2220N.

Line 33		 					Amount Due. There is an amount due when line 30 is less than the total of lines 22 and 32.
										Mandates of Electronic Payment. Some entities are required to make their payments (tax,
penalty, and interest) electronically. For mandate purposes, all of the electronic payment
options identified below satisfy the mandate requirement. All entities are encouraged to make
their payments electronically.

Electronic Payment Options

Electronic Funds Withdrawal (EFW). With this payment option, you provide your
payment information within your electronically-filed return. Your payment will
automatically be withdrawn from your bank account on the date you specify.
Nebraska e-pay. Nebraska e-pay is DOR’s web-based electronic payment system. You
enter your payment and bank account information, and choose a date (up to a year
in advance) to have your account debited. You will receive an email confirmation for
each payment scheduled.
ACH Credit. You (or your bank) create an electronic file in the appropriate ACH file
format. It is submitted to the Federal Reserve and instructs your bank to “credit” the
state’s bank account.
Nebraska Tele-pay. Nebraska Tele-pay is DOR’s phone-based electronic payment
system. Call 800-232-0057, enter your payment and bank account information, and
choose a date (up to a year in advance) to have your account debited. You will receive
a confirmation number at the end of your call.
Credit Card. Secure credit card payments can be initiated through ACI Payments,
Inc. at acipayonline.com or via phone at 800-272-9829. Eligible credit cards include
American Express, Discover, MasterCard, and VISA. A convenience fee is charged
to the card you use. This fee is paid to the credit card vendor, not the State, and will
appear on your credit card statement separately from the payment made to DOR. At
the end of your transaction, you will be given a confirmation number. Keep this number
for your records. [If you are making your credit card payment by phone, you will need
to provide the Nebraska Jurisdiction Code, which is 3700.]
Cancel a payment. To cancel a scheduled EFW payment, contact our Taxpayer
Assistance office at 800-742-7474 or 402-471-5729 before 4:00 pm Central Time at
least two business days prior to your scheduled payment date. You may cancel a
payment scheduled through Nebraska e-pay by logging into the e-pay program from
our website and selecting “cancel payment.” To cancel a credit card payment, contact
ACI Payments, Inc.
Check or Money Order. If you are not using one of the electronic payment options described
above, include a check or money order payable to the “Nebraska Department of Revenue.”
Checks written to DOR may be presented for payment electronically.

Line 34							Overpayment. If line 30 is greater than the sum of lines 22 and 32, enter the result of line 30
minus the total of lines 22 and 32.

Line 35							Amount Credited to 2025 Estimated Income Tax. Enter the amount of overpayment shown
on line 34 that you want credited as a tax year 2025 estimated income tax payment for
the corporation.

Line 36							Overpayment to be Refunded. Enter the amount of overpayment shown on line 34 that you
want refunded. The overpayment to be refunded is calculated by subtracting line 35 from line
34. DOR recommends having any refund on line 36 directly deposited to the corporation’s
bank account. See line 37 instructions below.

Line 37							Direct Deposit. To deposit the refund directly into the corporation’s checking or savings

account, enter the routing number and account number found on the bottom of the checks
used with the account. The routing number is listed first and must be nine digits. The account
number is listed to the right of the routing number and can be up to 17 digits. Enter these

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numbers in the boxes found on lines 37a and 37c, and complete line 37b, Type of Account.
The box on line 37d must be checked if the refund will go to a bank account outside the
United States. This is necessary to comply with banking rules regarding International ACH
Transactions (IATs). These refunds cannot be processed as direct deposits and instead will
be mailed.

Signature	 					Sign and Date the Tax Return. This return must be signed by a corporate officer. Include
a daytime phone number and email address in case DOR needs to contact you about
your account.

										Email. By entering an email address, the taxpayer acknowledges that DOR may contact
the taxpayer by email. The taxpayer accepts any risk to confidentiality associated with this
method of communication. DOR will send all confidential information by secure email or
the State of Nebraska’s file share system. If you do not wish to be contacted by email, write
“Opt Out” on the line labeled “email address.”
If a corporate officer authorizes another person to sign the return, there must be a Power of
Attorney, Form 33, on file with DOR or attached to the return.
The act of e-filing a return is your signature. By e-filing the return, taxpayers and their tax
preparers, if applicable, are declaring under penalties of perjury, that they have examined the
electronic return, and to the best of their knowledge and belief, it is true, correct, and complete.
Paid Preparer’s Use Only. Any person who is paid for preparing a taxpayer’s return must sign
the return as preparer. Additionally, the preparer must enter their Preparer Tax Identification
Number (PTIN), their firm’s name, and Federal Employer Identification Number (EIN).

Nebraska Schedule A Instructions
Adjustments to FTI
Purpose. The Nebraska Schedule A is used to adjust the corporate taxpayer’s FTI reported
on line 2 of the Form 1120N. The Nebraska Schedule A must be completed by all corporate
taxpayers making any adjustments on lines 3 or 4 of Form 1120N. Any adjustments that
are summarized on Nebraska Schedule A are carried forward to lines 3 and 4, Form 1120N.

Adjustments Increasing FTI
Line 1								State and Local Government Interest and Dividend Income. Enter all state and local government

interest or dividends that are exempt from federal income tax and not issued by Nebraska
state and local government subdivisions.

Line 2 							Federal Net Operating Loss Deduction. Enter the federal net operating loss allowed as a
deduction on the federal return. See line 9, Form 1120N instructions for allowable Nebraska
net operating losses.

Line 3 							Federal Capital Loss Carryover. Enter the portion of the federal capital loss carryover

allowed as a deduction this year. See line 7, Form 1120N instructions for allowable Nebraska
capital losses.

Line 4 							Allocable, Nonapportionable Loss. Enter the amount of any claimed allocable, nonapportionable

loss. Allocable, nonapportionable loss is a loss that is not part of the unitary business, and has
not been claimed as a loss that is part of the unitary business that is subject to apportionment
by another state with substantially the same law as Nebraska.

										 Attach a detailed description of the claimed amount, together with evidence that the loss is
not part of the unitary business. Also, attach an affidavit from a corporate officer that the
corporate taxpayer has not claimed the same loss to be a part of a unitary business subject to
apportionment in another state with substantially the same law as Nebraska on apportionability
of losses. Note that Nebraska law is unique on apportionability of losses. Therefore, it may
be extremely difficult for a corporate taxpayer to meet the above requirements.
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Line 5 							Related Expenses. Enter the amount of related expenses. Related expenses include all direct
and indirect expenses attributable to the activities producing the allocable, nonapportionable
loss entered on line 4.

Line 6 							Interest Expense Disallowance. Enter the interest expense calculated for the allocable,
nonapportionable loss.

										To calculate the interest expense:
	 	 	 	 	 	 	 	 	 	 	 u	
Divide the taxpayer’s average investment in the activities producing the allocable,
nonapportionable loss by the taxpayer’s average total assets to obtain a ratio; and
	 	 	 	 	 	 	 	 	 	 	 u	Multiply this ratio by the total interest deduction allowed in the computation of federal
taxable income.

Line 7 							Total Allocable, Nonapportionable Loss. Enter the result of line 4 plus lines 5 and 6.
Line 8 							Nebraska and Local Income, Sales, and Use Taxes Deducted on Federal Form 1065 Under

Section 164 of the IRC. Enter the amount of taxes from line 15, Schedule K-1N, Form 1065N.

Line 9 							Other Increasing Adjustments. Enter any other adjustment increasing FTI not reported on

lines 2 through 8. List the type of adjustment on line 9a, Schedule A, and the associated
amount on line 9b. Attach a detailed explanation of the basis for each adjustment and any
necessary schedules.

Line 10 							Total Adjustments Increasing FTI. Enter the result of line 1 plus lines 2, 3, 7, 8, and 9 here
and on line 3, Form 1120N.

Adjustments Decreasing FTI
Line 11	 						Qualified U.S. Government Interest Deduction. Enter the amount of interest and dividend
income from U.S. government obligations exempt from state taxation.

The Taxability of Interest and Dividend Income From State, Local, and U.S. Government
Obligations Information Guide, lists U.S. interest and dividend income that can be included
on line 11, Nebraska Schedule A. Interest income from repurchase agreements involving U.S.
government obligations is not deductible as U.S. government interest.
Gains or losses from the sale or other disposition of federal securities are taxable for state
income tax purposes and should not be included on line 11.

Line 12							Total Foreign Dividends. Enter the amount of total foreign dividends from line 7, Nebraska
Schedule II.

Line 13 							Special Foreign Tax Credit Adjustment. Enter the amount of adjustment from line 12, Nebraska
Schedule II.

Line 14							Allocable, Nonapportionable Income. Enter the amount of any claimed allocable,

nonapportionable income. Allocable, nonapportionable income is income that is not part of
the unitary business, and has not been claimed as income that is a part of the unitary business
that is subject to apportionment by another state with substantially the same law as Nebraska
on apportionability of income. Note that Nebraska law is unique on apportionability of
income. Therefore, it may be extremely difficult for a corporate taxpayer to meet the above
requirements.
Note: Entries must be made on lines 15 and 16, or the entire amount of allocable, nonapportionable
income claimed may be disallowed.
Attach a detailed description of the claimed amount, together with evidence that the income
is not part of a unitary business. Also, attach an affidavit from a corporate officer that the
corporate taxpayer has not claimed the same income to be a part of a unitary business subject
to apportionment in another state with substantially the same law as Nebraska.

Line 15							Related Expenses. Enter the amount of related expenses. Related expenses include all direct
and indirect expenses attributable to the activities producing the allocable, nonapportionable
income amount entered on line 14.

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Line 16							Interest Expense Disallowance. Enter the interest expense calculated for the allocable,

nonapportionable income.
To calculate the interest expense:
											u	Divide the taxpayer's average investment in the activities producing the allocable,
nonapportionable income by the taxpayer's average total assets to obtain a ratio; and
											u	Multiply this ratio by the total interest deduction allowed in the computation of federal
taxable income.

Line 17							 Net Allocable, Nonapportionable Income. Enter the result of line 14 minus lines 15 and 16.
Line 18							Nebraska College Savings Program. Nebraska allows a subtraction from a participant’s federal

taxable income for the amount of annual contributions made to an account established under
the Nebraska Educational Savings Plan Trust. The maximum annual exempt contribution per
return is $10,000. Contributions to other states’ 529 college savings plans cannot be deducted
on line 18.
Interest and earnings from the Nebraska College Savings Program may be deducted to the
extent that the income is included in federal taxable income. This adjustment must be taken
on line 20, Other Decreasing Adjustments.

Line 19							Contributions made to the Medical Debt Relief Fund. Enter the amount of contributions made
to the Medical Debt Relief Fund. Do not include any portion of the contribution that was
deducted on the federal return.

Line 20							Other Decreasing Adjustments. Enter any other applicable adjustment not reported on

lines 11 through 19. List the type of adjustment on line 20a, Schedule A, and the associated
amount on line 20b. Attach a detailed explanation of the basis for each adjustment and any
necessary schedules.
Note: This line should only be used in extremely unusual circumstances as virtually all valid
adjustments should be claimed elsewhere on Nebraska Schedule A.
The following examples are items that are not allowable adjustments decreasing federal
taxable income:

											u	Global Intangible Low-Taxed Income (GILTI). See DOR’s General  Information
Letters 24-20-1, Global Intangible Low-Taxed Income and Foreign-Derived
Intangible Income for information regarding Nebraska’s treatment of GILTI inclusions;
											u	
The wage expense disallowed by the work opportunity tax credit;
											u	Federal income taxes or other federal taxes paid;
											u	The depreciation disallowed by the investment credit or other federally-required
basis reduction;
											u	Income earned in another state. Instead, Nebraska Schedule I, Apportionment for
Multistate Business, must be completed; and
											u	Income from a partnership. For additional information, see Business Entity Regulation
24‑315, Sales Factor; Business Entities As Owners in a Partnership or Joint Venture.

Line 21							Total Adjustments Decreasing FTI. Enter total adjustments here and on line 4, Form 1120N.

Nebraska Schedule I Instructions
Apportionment for Multistate Business
Purpose. The Nebraska Schedule I is used to determine the amount of Nebraska source
income (Form 1120N, line 6, Nebraska taxable income before Nebraska carryovers) received
by a corporation that derives income from within and without Nebraska.
Nebraska source income is determined by apportioning the corporate income using a single,
sales only factor. Apportionment refers to the division of income between states by the use
of a formula containing one or more apportionment factors.
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Sales Factor. The sales factor is a fraction. The numerator is the total sales of the corporate
taxpayer in Nebraska during the taxable year. The denominator is the total sales of the
corporate taxpayer everywhere during the taxable year. Total sales include gross sales of
real and tangible personal property, less returns and allowances, and all other items of gross
receipts, except income for the discharge of indebtedness, amounts received from hedging
transactions involving intangible assets, and net gains from marketable securities held for
investment. The sales factor on this schedule is rounded to six decimal places. It is entered
as a percentage.
When a corporate taxpayer consists of two or more corporations engaged in a unitary
business, a part of which is conducted in Nebraska, the income of the corporate taxpayer
apportioned to Nebraska is determined by applying the ratio of the corporate taxpayer’s
sales in Nebraska to the sales of the entire unitary group. The corporate taxpayer’s sales
in Nebraska should include only those sales made by members of the unitary group with
nexus in this state. Each corporate taxpayer must file one income tax return for the entire
group. The return will include all corporations in the unitary business. Any corporation that
is required, or has received permission, to use an alternative apportionment formula, may
only be included in a return with other corporations using the same apportionment formula.
For tax years beginning January 1, 2014 or after, a corporation may no longer use the costs
of performance method of apportioning sales other than sales of tangible personal property
except for a corporation operating as a communications company. For additional information,
see the Nebraska Apportionment Factor - Sales or Gross Receipts section.
A corporation using an alternative method of apportionment must attach a copy of the
Tax Commissioner’s prior written approval of the alternative method. The alternative
apportionment factor computation must be included. Enter the factor on line 2, Nebraska
Schedule I.
NOTE: Approval of an alternative method of apportionment is rare.
Intercompany sales between unitary corporations using the combined income approach are
excluded from the sales factor.
If the corporate taxpayer is a partner in a partnership or joint venture, see Business Entity
Regulation 24-315, Sales Factor; Business Entities As Owners in a Partnership or Joint Venture.
A corporate taxpayer that operates a trucking business and has income from both within
and without this state, must compute its sales factor in accordance with Business Income
Tax Regulation 24‑343, Special Apportionment Rules; All Tax Years; Trucking Companies.
The method of computing the sales factor must be consistent with prior tax years and with the
corporate taxpayer’s filings in other states. If the corporation modifies the basis for including
or excluding gross receipts in the sales factor used in returns for prior years, the 2024 return
must disclose the nature and extent of the modification.
If the corporation files returns with other states that are not uniform in the inclusion or
exclusion of gross receipts, the Form 1120N filed with DOR must disclose the nature and
extent of the variance.

Computation of Nebraska Source Income
Line 1 							Adjusted FTI. Enter the amount from line 5, Form 1120N.
Line 2								Nebraska Apportionment Factor. Enter the amount from line 15, Nebraska Schedule I,
Form 1120N.

Line 3								Taxable Income Apportioned to Nebraska. Enter in line 3 the result of line 1 multiplied by
line 2. Also enter this amount on line 6, Form 1120N.

Nebraska Apportionment Factor – Sales or Gross Receipts
Nebraska sales include all items of income received by the corporate taxpayer from Nebraska
sources. The following types of sales are from Nebraska sources:
	 u	Sales of tangible personal property delivered in this state;
	 u	Sales of tangible personal property shipped from Nebraska to the U.S. government;
	 u	Gross receipts from the interest or service charges arising from the sale of tangible
personal property if the sale is attributed to Nebraska;
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	 u	Sales of other than tangible personal property –
	 P	
To the extent a service relates to real or tangible personal property located
in Nebraska;
	 P	 To the extent a service relates to part of the buyer’s trade or business operated
in Nebraska;
	 P	 A service provided to an individual present in Nebraska at the time the service
is received;
	 P	
To the extent an application service is used in Nebraska;
	 P	
To the extent intangible property is used in Nebraska;
	 P	
To the extent an intangible asset used in a treasury function is managed in Nebraska;
	 P	
To the extent a loan is secured by real or tangible personal property located
in Nebraska;
	 P	
To the extent a loan is not secured by real or tangible personal property, if the
borrower is in this state. The location is presumed to be the borrower’s billing
address.
	 P	
Fees, charges, and net gains from credit card receivables, if the credit card holder’s
billing address is in Nebraska;
	 P	 Gross receipts from the sale, rental, or lease of real property if the real property
is located in Nebraska;
	 P	 Gross receipts from renting, leasing, or licensing tangible personal property if the
property is in Nebraska. If the property was located within and without Nebraska
during the taxable year, then the gross receipts are attributable to Nebraska in
proportion to the percentage of time the property was located in Nebraska;
	 P	
For sales not specifically addressed above, sales to an individual if the individual's
billing address is in Nebraska, and sales to a business if the business places its
order from Nebraska or the billing address of the business if the ordering place
cannot be readily determined; and
	 P	
Sales made by a communications company if the income-producing activity is
performed in Nebraska based on costs of performance.
For additional information, see Neb. Rev. Stat. § 77-2734.14.

Line 4								Sales or Gross Receipts Minus Returns and Allowances. Enter the gross receipts, less any
returns and allowances reported on the Federal Form 1120.

Line 5								Sales Delivered or Shipped to Purchasers in Nebraska: Shipped From Outside Nebraska.

Delivery in Nebraska is determined without regard to the F.O.B. point or other conditions
of the sale. The amount entered on this line should not include sales to the U.S. government.

Line 6								Sales Delivered or Shipped to Purchasers in Nebraska: Shipped From Within Nebraska. Delivery

in Nebraska is determined without regard to the F.O.B. point or other conditions of the sale.
The amount entered on this line should not include sales to the U.S. government.

Line 7								 Sales Shipped From Nebraska to the U.S. Government. The U.S. government is the purchaser when

it makes direct payment to the seller. The amount on this line includes all sales of tangible personal
property to the U.S. government that are shipped from an office, store, warehouse, factory, or other
place of business in this state. For other sales made to the U.S. government, use the rules for sales of
other than tangible personal property. For additional information, see Neb. Rev. Stat. § 77-2734.14.

Line 8								Interest on Sales of Tangible Personal Property. In the Total column, enter all interest or
service charges received from the sale of tangible personal property.

In the Nebraska column, enter all the interest or service charges related to the sale of tangible
personal property delivered in Nebraska and from sales to the U.S. government shipped
from Nebraska.

Line 9								Interest, Dividends, and Royalties From Intangible Property. In the Total column, enter all
the  interest, dividend, and royalty income from intangible property received by
the corporation.

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In the Nebraska column, enter the amount sourced to Nebraska as determined by
Neb. Rev. Stat. § 77‑2734.14(3).

Line 10							Gross Rents. In the Total column, enter the gross receipts from the rental or lease of all real
or tangible personal property.

In the Nebraska column, enter the gross receipts from the rental or lease of real or tangible
personal property located in Nebraska. If the tangible personal property rented or leased
is located or used both inside and outside this state, the Nebraska receipts are attributable
to Nebraska in proportion to the percentage of time the property was located in Nebraska.

Line 11							Net Gain on Sales of Intangible Property. In the Total column, enter the net gain on sales of
all intangible property made during the tax year.

In the Nebraska column, enter the amount of net gain from sales made to a buyer who uses
the intangible in Nebraska as determined by Neb. Rev. Stat. § 77-2734.14.
NOTE: A net loss on the sale of intangible property is not included in the calculation of the
Nebraska sales factor.

Line 12							Gross Receipts From Sales of Tangible Personal and Real Property Not Included Above. In

the Total column, enter the gross receipts from sales of all tangible personal property and
real property not included above.
In the Nebraska column, enter the gross receipts from sales of real property located in
Nebraska. Also enter the gross receipts from tangible personal property delivered in this
state or delivered to the U.S. government from a location in this state.

Line 13							Other Income. In the Total column, enter any other income not reported above that was
received by the corporation.

In the Nebraska column, enter any other income not reported above that was derived from
Nebraska sources.
The amounts entered on this line include, but are not limited to, net farm income (loss)
subpart F inclusions, GILTI, and the ordinary business income (loss) from partnerships. If
the corporation would be considered unitary with the partnership if the partnership was a
corporation, enter the distributive share of the partnership’s gross receipts. If the corporation
and the partnership would not be considered unitary, enter the distributive share of the income
received from the partnership. See Business Entity Regulation 24-315, Sales Factor; Business
Entities As Owners in a Partnership or Joint Venture, for additional information regarding
the apportionment of income received from a partnership. For additional information on
subpart F inclusions and GILTI, see Revenue Ruling 24-21-1 Subpart F Income and General
Information Letter 24-20-1, Global Intangible Low-Taxed Income and Foreign-Derived
Intangible Income.

Line 14							Total Sales or Gross Receipts. In the Total column, add lines 4 and 8 through 13, and enter
the result on line 14.
In the Nebraska column, add lines 5 through 13, and enter the result on line 14.

Line 15							Nebraska Apportionment Factor. Compute the Nebraska apportionment factor by dividing
line 14, Nebraska column, by line 14, Total column; round to six decimal places and enter
as a percent.

										Example 4.
										Line 14 
Nebraska column	107,699
		 Line 14  Total column 		 499,992

= .2154014464231428

		 Enter 21.5401 % on line 15.
		 Since the seventh digit (4) is less than five, the sixth digit (1) is not rounded up to 2.

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Nebraska Schedule II Instructions
Foreign Dividend and Special Foreign Tax Credit Deduction
Purpose. The Nebraska Schedule II is used to calculate the deduction for dividends included
in federal taxable income (line 30, Federal Form 1120) from corporations whose dividends do
not qualify for the dividends received deduction under Internal Revenue Code (IRC) § 243.
In addition, an adjustment is allowed for income that is taxed by a foreign country, or one
of its political subdivisions, at a rate in excess of the maximum federal corporate tax rate.
The adjustment can be made for each foreign country or group of foreign countries. The
amount of federal taxable income from operations within a foreign taxing jurisdiction must
be reduced by the amount of taxes actually paid to the foreign jurisdiction that are not
deductible solely because the foreign tax credit was elected on the federal income tax return.
The amount of after-tax income is then divided by one minus the maximum tax rate for
corporations in the IRC. The result of this calculation is subtracted from the amount of
federal taxable income from foreign operations.
The difference is reported in the total adjustments decreasing FTI computed on Nebraska
Schedule A, and is included as an adjustment to federal taxable income on line 4, Form 1120N.
Schedule C, Federal Form 1120, and Parts A and B of Federal Form 1118 must be attached.

Line 1								Dividends From Foreign Corporations and Certain FSCs Subject to the IRC § 245 Deduction.

Enter the total of lines 6 and 7, column (a), Schedule C, Federal Form 1120; or lines 6 and
7, column (a), Schedule A, Federal Form 1120-L.

Line 2								Special Deductions on Line 1 Amount. Enter the total of lines 6 and 7, column (c), Schedule
C, Federal Form 1120; or lines 6 and 7, column (c), Schedule A, Federal Form 1120-L.

Line 3								Net Foreign Dividends Subject to the IRC § 245 Deduction Included in Federal Taxable Income.
Enter the result of line 1 minus line 2.

Line 4								Other Dividends From Foreign Corporations. Enter the amount from line 14, Schedule C,

Federal Form 1120, or line 15, Schedule A, Federal Form 1120-L. A U.S. life insurance
company claiming a deduction for “Other corporate dividends” from line 19, Schedule A,
Federal Form 1120-L, must include a detailed description of the dividends claimed.

Line 5								Income From Controlled Foreign Corporations Under Subpart F Treated as a Foreign Dividend
Under the IRC. Enter the amount of foreign dividends from Schedule C, Federal Form 1120.
This includes amounts reported on Federal Schedule C, line 16b. The amount entered on this
line may only include Subpart F inclusion income that is a foreign dividend or deemed foreign
dividend under the IRC. Attach a copy of the Federal Schedule C to support a deduction
for amounts reported on line 16b.

Special Foreign Tax Credit Deduction Computation
										

Most subpart F inclusions reported on Federal Schedule C, line 16c are not foreign dividends
or deemed foreign dividends under the IRC. Attach a copy of Federal Schedule C; Forms
5471; Schedules I, Form 5471. The above forms and schedules do not identify any amo