NICHOLAS INCOME FUND INC
NSAR-B, 1997-02-25
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<PAGE>      PAGE  1
000 B000000 12/31/96
000 C000000 0000107822
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0.a
000 J000000 U
001 A000000 NICHOLAS INCOME FUND, INC.
001 B000000 811-216
001 C000000 4142724650
002 A000000 700 N. WATER STREET, SUITE 1010
002 B000000 MILWAUKEE
002 C000000 WI
002 D010000 53202
002 D020000 4276
003  000000 N
004  000000 N
005  000000 N
006  000000 N
007 A000000 N
007 B000000  0
020 A000001 S & P CORPORATION
020 B000001 13-2671951
020 C000001      6
020 A000002 EQUITABLE SECURITIES
020 B000002 62-0871146
020 C000002      1
020 C000003      0
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021  000000        7
022 A000001 FIRSTAR TRUST COMPANY
022 B000001 39-0281260
022 C000001     67990
022 D000001     65422
022 A000002 RODMAN & RENSHAW, INC.
022 B000002 36-2679547
022 C000002     40116
022 D000002     40895
022 A000003 MARSHALL & ILSLEY BANK
022 B000003 39-1610688
022 C000003     35761
022 D000003      2895
022 A000004 FIRSTAR INVESTMENT DEPARTMENT
<PAGE>      PAGE  2
022 B000004 39-0281225
022 C000004     36505
022 D000004      1247
022 A000005 MORGAN KEEGAN
022 B000005 64-0474907
022 C000005     13798
022 D000005      1097
022 A000006 CS FIRST BOSTON, INC.
022 B000006 13-5659485
022 C000006     11850
022 D000006         0
022 A000007 MORGAN STANLEY GROUP, INC.
022 B000007 13-2655978
022 C000007      8989
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022 A000008 NATWEST SECURITIES
022 B000008 13-3312778
022 C000008      7678
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022 A000009 MCDONALD & CO.
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<PAGE>      PAGE  3
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<PAGE>      PAGE  4
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<PAGE>      PAGE  6
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SIGNATURE   THOMAS J. SAEGER                             
TITLE       EXEC VICE PRESIDENT 
 


<TABLE> <S> <C>

<ARTICLE> 6
<CURRENCY> US DOLLARS
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          DEC-31-1996
<PERIOD-START>                             JAN-01-1996
<PERIOD-END>                               DEC-31-1996
<EXCHANGE-RATE>                                      1
<INVESTMENTS-AT-COST>                        177051427
<INVESTMENTS-AT-VALUE>                       182794225
<RECEIVABLES>                                  4108609
<ASSETS-OTHER>                                       0
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                               186902834
<PAYABLE-FOR-SECURITIES>                             0
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                      1234915
<TOTAL-LIABILITIES>                            1234915
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                     188573013
<SHARES-COMMON-STOCK>                         52650373
<SHARES-COMMON-PRIOR>                         47428354
<ACCUMULATED-NII-CURRENT>                       609191
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                      (8215841)
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                       5701556
<NET-ASSETS>                                 185667919
<DIVIDEND-INCOME>                              1427913
<INTEREST-INCOME>                             14034414
<OTHER-INCOME>                                   47164
<EXPENSES-NET>                                  930731
<NET-INVESTMENT-INCOME>                       14578760
<REALIZED-GAINS-CURRENT>                        458971
<APPREC-INCREASE-CURRENT>                      5006476
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<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                     14615595
<DISTRIBUTIONS-OF-GAINS>                             0
<DISTRIBUTIONS-OTHER>                                0
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<NUMBER-OF-SHARES-REDEEMED>                    8444524
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<NET-CHANGE-IN-ASSETS>                        23587980
<ACCUMULATED-NII-PRIOR>                         646026
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                           661606
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                 930731
<AVERAGE-NET-ASSETS>                         170443770
<PER-SHARE-NAV-BEGIN>                             3.42
<PER-SHARE-NII>                                    .30
<PER-SHARE-GAIN-APPREC>                            .11
<PER-SHARE-DIVIDEND>                               .30
<PER-SHARE-DISTRIBUTIONS>                            0
<RETURNS-OF-CAPITAL>                                 0
<PER-SHARE-NAV-END>                               3.53
<EXPENSE-RATIO>                                   0.55
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
        

</TABLE>


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