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Nebraska Tax Exemption



Is a non-profit corporation in Nebraska eligible for any state tax exemptions?

Nonprofit corporations in Nebraska could be eligible for state income tax and sales and use tax exemptions. However, this determination is based upon how the federal status of the nonprofit corporation. If your nonprofit organization has been determined as a federally tax exempt entity, you will not have to pay state income taxes for the nonprofit corporation. Sales and use tax exemption, however, is more complicated.

Do I have to file any paperwork for my non-profit corporation to receive the state income tax exemption?

No, you do not have to file anything with the state and are automatically exempt from the state income tax. But, in order to receive the exemption, you must be declared tax exempt by the IRS.

What nonprofits qualify for sales tax exemptions in Nebraska?

Below, you’ll find the types of NE nonprofit organizations that can qualify for sales tax exemption in Nebraska:

  • Exclusively religious nonprofits.
  • Nonprofits exclusively for the blind.
  • Nonprofit educational institutions.
  • Nonprofit hospitals.
  • Nonprofit care facilities for the mentally retarded.
  • Nonprofit nursing facilities
  • Nonprofit assisted living facilities.
  • Nonprofit home health care agencies.
  • Nonprofit health clinics, when owned.
  • Child-care agencies which provide 24-hour daily care.
  • An organization providing day care.
  • Child-placing agencies.
  • Nonprofit organizations certified by the Nebraska Department of Health and Human Services to provide community-based services to the developmentally disabled.

How does a non-profit corporation apply for a sales tax exemption in Nebraska?

To apply for a Nebraska sales tax exemption, the nonprofit corporation must apply for a certificate of exemption by submitting a Nebraska Exemption Application for Sales and Use Tax, Form 4, to the Department of Revenue. However, the Nebraska Department of Revenue only exempts nonprofits from paying tax on certain kinds of sales. You’ll find the rules below:

  • A nonprofit will have to pay sales tax on purchases made as a consumer.
  • A nonprofit does not have to pay sales tax on purchases made for resale.
  • A nonprofit must collect sales tax on sales that the organization makes.

Additional Non-Profit Resources:

501(c)3 Registration

Nebraska Tax Information:

Nebraska Department of Revenue
Nebraska State Office Building
301 Centennial Mall South
Lincoln, NE 68509-4818
Phone: (402) 471-5729
Website: http://www.revenue.ne.gov

This comprehensive guide to obtaining and maintaining 501c3 status from the IRS includes information on how to prepare your nonprofit to apply for 501c3 status, as well as information about the forms and fees required by the IRS.

This guide overviews and includes the special tax-exempt language a 501c3 nonprofit organization must include as part of its articles of incorporation. 

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