Nebraska Biodiesel Laws and Incentives

State Incentives

Biodiesel Production Investment Tax Credit

Investors in Nebraska biodiesel production facilities are eligible to receive a tax credit of up to 30% of the amount invested in the facility between January 1, 2008, and January 1, 2015, not to exceed $250,000. The credit is only available for facilities that produce B100, perform all processing in Nebraska, and are at least 51% owned by Nebraska individuals or entities. The tax credit may be reclaimed if the biodiesel production facility remains in operation for less than three years. B100 is defined as pure biodiesel containing mono-alkyl esters of long chain fatty acids derived from vegetable oils or animal fats that meets ASTM standard D6751. (Reference Nebraska Statutes 77-27,236)

State Laws and Regulations

Alternative Fuel Use

All state employees operating state fleet flexible fuel or diesel vehicles are required to use E85 or biodiesel blends whenever reasonably available. Additionally, the Nebraska Transportation Services Bureau and Nebraska Department of Roads are required to take steps to increase access to E85 and blends of 2% biodiesel (B2) for state vehicle operators. (Reference Executive Order 05-03, 2005)

Ethanol and Biodiesel Tax Exemption

Motor fuels sold to an ethanol or biodiesel production facility and motor fuels manufactured at an ethanol or biodiesel facility are exempt from certain motor fuel tax laws enforced by the Motor Fuels Division of the Nebraska Department of Revenue. (Reference Nebraska Statutes 66-489 and 66-496)