Nebraska Laws and Incentives for Natural Gas

The list below contains summaries of all Nebraska laws and incentives related to Natural Gas.

State Incentives

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. The maximum loan amount is $750,000 per borrower, and the interest rate is 5% or less.

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 or propane when the fuel is used to operate buses capable of carrying seven or more passengers within or near a municipality. (Reference Nebraska Statutes 66-6,100 and 66-6,109.01)

Utility/Private Incentives

Compressed Natural Gas (CNG) Vehicle Rebate - Metropolitan Utilities District

Residential gas customers in the Omaha area served by the Metropolitan Utilities District are eligible for a $500 rebate for the purchase of a dedicated CNG vehicle. Rebates are available on a first-come first-served basis, and applicants must provide proof of purchase for the vehicle to qualify. Additional restrictions may apply. Commercial rebates are available on a case-by-case basis.

Laws and Regulations

Natural Gas Motor Vehicle Fuel Promotion

Effective October 1, 2012, an eight member Natural Gas Fuel Board (Board) will be created to advise the Nebraska Energy Office regarding the promotion of natural gas as a motor vehicle fuel. The Board will provide recommendations relating to the distribution, infrastructure, and workforce development necessary for widespread use of natural gas as a motor vehicle fuel; loans, grants, and tax incentives that will encourage the use of natural gas as a motor vehicle fuel by individuals and public and private fleets; and other matters as the Board deems appropriate. (Reference Legislative Bill 1087, 2012)

Alternative Fuel Excise Tax

An excise tax of $0.075 per gallon or gasoline gallon equivalent (GGE) is imposed on all compressed natural gas (CNG), liquefied natural gas (LNG), and liquefied petroleum gas or propane sold for use in registered motor vehicles. Additionally, each retailer of such fuel must pay an excise tax of $0.028 per gallon or GGE on all CNG, LNG, and propane 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)