Nebraska Property Tax Credit General Information
This guidance document is advisory in nature but is binding on the Nebraska Department of Revenue (DOR) until amended. A guidance document does not include internal procedural documents that only affect the internal operations of DOR and does not impose additional requirements or penalties on regulated parties or include confidential information or rules and regulations made in accordance with the Administrative Procedure Act. If you believe that this guidance document imposes additional requirements or penalties on regulated parties, you may request a review of the document.
This guidance document may change with updated information or added examples. DOR recommends you do not print this document. Instead, sign up for the subscription service at revenue.nebraska.gov to get updates on your topics of interest.
Overview
Nebraska provides refundable credits for both school district and community college property taxes paid. Each credit is equal to a distinct percentage multiplied by either the school district or community college tax paid. The Nebraska Department of Revenue (DOR) computes each credit percentage during the last quarter of each calendar year.
The school district and community college property taxes paid on each parcel may be found in the Look-up Tool. The information related to payments made in prior years that qualify for the property tax credit will remain in the Look-up Tool.
Credit for Property Taxes Paid in 2022 and after. The credit is available for both school district and community college property taxes paid. An individual or entity may claim the credit by filing the appropriate Nebraska tax return together with a Nebraska Property Tax Credit, Form PTC (Form PTC).
Credit for Property Taxes paid in 2021. The credit is only available for school district property taxes paid. An individual or entity may claim the credit by filing the appropriate Nebraska tax return together with a 2021 Form PTC. If an individual does not owe Nebraska income tax and paid Nebraska school district taxes, a Nebraska income tax return and the 2021 Form PTC should still be filed to receive the credit. If an individual did not claim the credit on their Nebraska tax return, they may file a 2021 Amended Nebraska Property Tax Incentive Act Credit Computation, Form PTCX.
S-corporations, partnerships, estates, and trusts that did not claim the credit or allocate the school district property taxes they paid in 2020, may claim the credit on their 2021 Nebraska return.
Credit for Property Taxes Paid in 2020. The credit is only available for school district property taxes paid. The credit may be claimed by an individual, C Corporation, financial institution, or organization exempt from income tax. These individuals and entities may claim the credit by filing the appropriate Nebraska tax return together with a 2020 Form PTC. If an individual does not owe Nebraska income tax and paid Nebraska school district taxes, a Nebraska income tax return and the 2021 Form PTC should still be filed to receive the credit. If an individual did not claim the credit on their Nebraska tax return, they may also file a 2020 Amended Nebraska Property Tax Incentive Act Credit Computation, Form PTCX.
A pass-through entity (S-corporation, partnership, or estate and trust) may allocate the school district property taxes they paid to their owners or beneficiaries in the same manner as income is distributed. An allocation is made by submitting a Form PTC, with the 2020 Nebraska tax return.
Other Information. Individuals and business entities who do not otherwise have a Nebraska income tax filing requirement must file a Nebraska return with the Form PTC to claim the credit.
Taxpayer Nebraska Return
Individual Nebraska Individual Income Tax Return, Form 1040N
Tax-exempt Corporation Nebraska Corporation Income Tax Return, Form 1120N
Tax-exempt trust Nebraska Fiduciary Income Tax Return, Form 1041N
Resident individuals may claim the credit by filing a Nebraska income tax return for free over the internet using the DOR’s NebFile system.
Contact Information
Questions regarding the Nebraska Property Tax Credit may be directed to:
Nebraska Taxpayer Assistance
Phone: 800-742-7474 (NE and IA) or 402-471-5729
