Nebraska Relocation Incentive Act Tax Credit for Employers
Neb. Rev. Stat. §§ 77-3107 to 77-3112
LB 1023 (2024) (Sections 1 through 6). Operative for Taxable Years Beginning on or After January 1, 2025.
An employer that pays relocation expenses for a qualified employee may receive a refundable credit. The employer must file the Nebraska Relocation Incentive Act (NRIA) Employer Credit Application, Form NRIA-A, with the Nebraska Department of Revenue (DOR) to be approved for the tax credits. A qualified employee is an individual who moves to Nebraska for the purpose of accepting a position of employment and receives an annual salary within the statutory annual wage income range for the applicable tax year. The credit is equal to 50% of the relocation expenses paid during the tax year and is limited to $5,000 for each qualified employee. The refundable credit may be used to offset income taxes, franchise taxes imposed under Neb. Rev. Stat. §§ 77-3801 to 77-3807, and premium taxes, including retaliatory taxes under Neb. Rev. Stat. §§ 44-150, 77-908, or 81-523.
The employer must file Form NRIA-A with the DOR requesting credits provided under the NRIA. The DOR will approve the NRIA credits requested if the:
- Employer files a complete application;
- Employee is a qualified employee;
- Qualified employee’s annual salary is within the statutory annual wage income range.*
- Employer pays relocation expenses for a qualified employee;
- Credit requested for each qualified employee does not exceed $5,000; and
- Calendar-year credit limitation of $1 million has not been reached.
* For tax year 2025, the statutory annual wage income range is $70,000 to $250,000. For tax years beginning on or after January 1, 2026, the statutory annual wage income range will be adjusted each tax year by the same percentage used to adjust the individual income tax brackets.
The updated income range for the upcoming year will not be posted until after September of the current year. NRIA credits may be recaptured from the employer if the qualified employee moves out of Nebraska within two years after the employer claimed the credit. The recaptured amount is an underpayment of tax and is due and payable on the tax return due immediately following the qualified employee's loss of residency.
Nebraska Relocation Incentive Act (NRIA) Employer Credit Application, Form NRIA-A
Tax Credit Authorization Table
Contact Information
Julie Schuur
Revenue Tax Specialist Senior, Policy Section
Nebraska Department of Revenue
301 Centennial Mall South
Lincoln, NE 68509-8944
402-471-1445
julie.schuur@nebraska.gov
