Nebraska Relocation Incentive Act 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 the 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.
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Employer Credit
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) 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:
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Employer files a complete application;
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Employee is a qualified employee;
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Qualified employee’s annual salary is within the statutory annual wage income range. For tax year 2025, this range is $70,000 to $250,000;
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Employer pays relocation expenses for a qualified employee;
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Credit requested for each qualified employee does not exceed $5,000; and
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Calendar-year credit limitation of $5 million has not been reached.
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.
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.
Employee Nebraska Wage Exclusion
A qualified employee may make a one-time election to exclude his or her Nebraska source wages within two calendar years of becoming a Nebraska resident. The election is made on the Nebraska Individual Income Tax Return, Form 1040N. A qualified employee is an individual who moves to Nebraska for the purpose of accepting a position of employment and who receives a salary within the statutory annual wage income range for the applicable tax year.
The exclusion is available to qualified employees if the:
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Election is made within two calendar years of becoming a Nebraska resident;
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Nebraska source wages were included in the employee’s federal adjusted gross income;
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Annual wage income of the position accepted by the qualified employee is within the statutory annual wage income range. For tax year 2025, this range is from $70,000 to $250,000; and
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Employee was not a resident of Nebraska in the year prior to the year in which residency is claimed for the purposes of the exclusion.
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.
Any tax reduction resulting from the exclusion may be recaptured if the qualified employee does not maintain residency in Nebraska for two full calendar years following the calendar year in which the exclusion was taken. The recaptured amount is an underpayment of tax and is due and payable on the tax return due immediately following the loss of residency.
