Nebraska E85 Laws and Incentives
State Incentives
Ethanol Production Tax Credit
A new ethanol facility that is in production after September 1, 2001, and produces a minimum of 100,000 annual gallons, before denaturing, may be eligible for a tax credit, in the form of transferable motor vehicle tax credit certificate, of $0.18 per gallon of ethanol produced. This credit is available to the facility for 96 consecutive months beginning with the first calendar month of eligibility and ends no later than June 30, 2012. Credits are available for up to 15,625,000 gallons of ethanol produced annually at each facility, and for up to 125,000,000 gallons of ethanol produced at each facility by the end of the 96-month period. Credits are only available for ethanol produced at a plant in Nebraska at which all fermentation, distillation, and dehydration takes place. Applications for credits must be made to the Nebraska Department of Revenue within three years of the date the ethanol was produced, or by September 30, 2012, whichever occurs first. (Reference Nebraska Statutes 66-1344)
Alternative Fuel Vehicle (AFV) and Fueling Infrastructure Loans
The Nebraska Energy Office administers the Dollar and Energy Saving Loan Program (Program). The Program makes low-cost loans available for a variety of alternative fuel projects, including: the replacement of conventional vehicles with AFVs; the purchase of new AFVs; the conversion of conventional vehicles to operate on alternative fuels; and the construction or purchase of a fueling station or equipment. Dedicated AFVs are eligible, and loans may go towards a portion of the cost of dual-fuel vehicles. The maximum loan amount is $150,000 per borrower, and the interest rate is 5% or less.
State Laws and Regulations
Regional Biofuels Corridor
Nebraska has joined Indiana, Iowa, Kansas, Michigan, Minnesota, North Dakota, South Dakota, and Wisconsin in adopting a cooperative initiative under the Energy Security and Climate Stewardship Platform Plan (Platform) (PDF 2 MB). Download Adobe Reader. The Platform establishes a regional biofuels corridor program and directs state transportation, agriculture, and regulatory officials to develop a system of coordinated signage across the Midwest for biofuels and advanced transportation fuels and to collaborate to create regional E85 corridors. The program requires standardized fuel product coding at fueling stations as well as increased education for retailers about converting existing fueling infrastructure to dispense E85.
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)
