When is the Nebraska PTET election deadline?

Election made on or before the due date (including approved extensions) of the partnership's or S corp's Nebraska return. Submitted via Nebraska DOR secure file-sharing system OR by checking Box 5 on the applicable Nebraska income tax return. Election applies for tax years beginning on and after January 1, 2018 (retroactive enactment 2023).

What is the Nebraska PTET rate?

Nebraska's PTET rate is 4.55% flat. NE DOR PTET FAQ rate table: 2026 = 4.55%

Is the Nebraska owner credit refundable?

Nebraska's PTET owner credit is refundable.

Does Nebraska PTET affect composite-return filing?

Stacks. See the composite-vs-PTET page for the full matrix.

Nebraska · NE

Nebraska Pass-Through Entity Tax (PTET)

Nebraska's PTET regime is one of the 37+ state workarounds to the federal SALT cap (IRC §164(b)(6)). The election is annual, statute-pinned below, and interacts with composite filing and §199A QBI in state-specific ways.

Statute: Neb. Rev. Stat. § 77-2727(6) and § 77-2734.01(8) (PTET Election); LB 754 (2023)
State DOR portal: https://revenue.nebraska.gov/tax-credits/nebraska-pass-through-entity-tax-ptet
Election deadline: Election made on or before the due date (including approved extensions) of the partnership's or S corp's Nebraska return. Submitted via Nebraska DOR secure file-sharing system OR by checking Box 5 on the applicable Nebraska income tax return.
Election form: Form PTET-E (PTE Election); Form 1065N (partnership) or Form 1120-SN (S corp)
Entity-level rate: 4.55% — NE DOR PTET FAQ rate table: 2026 = 4.55%
Eligible entities: s-corp, partnership, llc-as-s, llc-as-partnership
Owner credit: refundable
Composite interaction: stacks
§199A QBI base reduction: Yes — Reduces federal flow-through income (Notice 2020-75).
Last verified: 2026-05-12

Source: revenue.nebraska.gov/tax-credits/nebraska-pass-through-entity-tax-ptet + Form PTET-E. NE PTET is RETROACTIVE to 2018 — taxpayers can file amended elections.

IRC §164(b)(6)Notice 2020-75 IRC §199A

Reference computation

For a Nebraska pass-through entity with $500,000 of qualified net income allocated to this state, at a 37% federal marginal bracket, the entity-level PTET and federal-deduction math is:

Nebraska — reference example

QBI allocation·NE rate= Entity-level tax

$500,000×5%=$22,750

Neb. Rev. Stat. § 77-2727(6) and § 77-2734.01(8) (PTET Election); LB 754 (2023)

Entity tax·Federal bracket= Federal deduction (gross)

$22,750×37%=$8,418

At a 37% federal bracket, the entity-level deduction saves $8,418 in federal tax. Net of §199A QBI offset (~20% × bracket × entity tax = $1,684), aggregate benefit is approximately $6,734.

IRS Notice 2020-75

Run the picker pre-filled for Nebraska

Election walkthrough

Verify eligibility. Nebraska accepts: s-corp, partnership, llc-as-s, llc-as-partnership. Publicly traded partnerships excluded.
Check the deadline. Election made on or before the due date (including approved extensions) of the partnership's or S corp's Nebraska return. Submitted via Nebraska DOR secure file-sharing system OR by checking Box 5 on the applicable Nebraska income tax return. Election applies for tax years beginning on and after January 1, 2018 (retroactive enactment 2023).
Compute the entity-level tax. Apply the 4.55% rate to qualified net income.
Pay and file. Use Form PTET-E (PTE Election); Form 1065N (partnership) or Form 1120-SN (S corp). Quarterly estimates may be required.
Owners claim the state credit. refundable credit on the personal state return.
Verify composite interaction. Composite interaction: stacks. See composite vs PTET.
Run the federal §199A QBI math. PTET reduces the QBI base proportionally; net the federal SALT-arbitrage against the §199A offset.

Nebraska PTET — common questions

Annual deadline reminder

State PTET law revises annually. Nebraska's data was last verified on 2026-05-12. Re-confirm with the state DOR primary source before electing or filing. Last full-site review: 2026-05-12.