Nebraska Incentives and Laws

Last Updated August 2009

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)

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)

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.

Point of Contact

General Inquiries
Nebraska State Energy Office
Phone (402) 471-2867
Fax (402) 471-3064
energy@nebraska.gov
http://www.neo.ne.gov/loan/index.html

Alternative Fuel Tax Refund

The Motor Fuel Tax Enforcement and Collection Division of the Nebraska Department of Revenue will refund taxes paid on compressed natural gas, liquefied natural gas, and liquefied petroleum gas when the fuel is used to operate buses capable of carrying seven or more passengers within or near a municipality. (Reference Nebraska Statutes 66-6,109.01)

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)

Alternative Fuel User Tax and Registration

The Alternative Fuel Tax Act requires an individual to purchase an alternative fuel user permit in order to pay their estimated fuel tax liability for vehicles that operate using an alternative fuel on state highways. Alternative fuels include electricity and any other source of energy not otherwise taxed under the motor fuel tax laws; compressed natural gas, liquefied natural gas, and liquefied petroleum gas are not subject to this requirement. A fee of $75 is assessed at the time the alternative fuel user permit application is submitted to the Motor Fuel Tax Enforcement and Collection Division of the Nebraska Department of Revenue. (Reference Nebraska Statutes 66-684 through 66-695)

Alternative Fuel Excise Tax

An excise tax of $0.075 per gallon or gallon equivalent is imposed on all compressed natural gas (CNG), liquefied natural gas (LNG), and liquefied petroleum gas (LPG) sold for use in registered motor vehicles. Additionally, each retailer of such fuel must pay an excise tax of $0.028 per gallon or gallon equivalent on all LPG and CNG fuel sold for use in registered motor vehicles. Additional taxes as specified annually under these statutes may apply. (Reference Nebraska Statutes 66-6,102; 66-6,107; and 66-6,109)

Idle Reduction Weight Exemption

The maximum gross weight limit and the axle weight limit for any vehicle or combination of vehicles equipped with idle reduction technology may exceed the state's gross weight limit by up to 400 pounds per vehicle to compensate for the additional weight of the added idle reduction technology. (Reference Nebraska Statutes 60-6,294)

Utilities/Private Incentives

There are currently no known utility or private incentives offered in Nebraska.

Points of Contact:

NAME/EMAIL/TITLE	AGENCY	PHONE/FAX
Kay Kelly Project Manager	U.S. Department of Energy, Golden Office	Phone:(303) 275-6037 Fax:
Jerry Loos Public Information Officer	Nebraska State Energy Office	Phone:(402) 471-3356 Fax:(402) 471-3064
Janie Vrtiska Fleet Manager	Nebraska Department of Roads	Phone:(402) 479-4589 Fax:(402) 479-4884
Michael Mattison Maintenance Engineer	Nebraska Department of Roads	Phone:(402) 479-4878 Fax:(402) 479-4567
Robert Smith Fleet Acquisition Coordinator	U.S. General Services Administration, Regional Fleet Management Office	Phone:(314) 263-3024 Fax:(314) 263-3009
Lachala Kemp Environmental Engineer, Region 7	U.S. Environmental Protection Agency	Phone:(913) 551-7214 Fax:(913) 551-7844