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Nebraska

Nebraska

Incentives/Policies for Renewables & Efficiency

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Sales and Use Tax Exemption for Community Wind Projects   

Last DSIRE Review: 09/23/2013
Program Overview:
State: Nebraska
Incentive Type: Sales Tax Incentive
Eligible Renewable/Other Technologies: Wind
Applicable Sectors: Commercial, Residential, Nonprofit, Utility, Tribal Government, Agricultural
Amount:100% exemption
Maximum Incentive:None specified
Start Date:10/01/2008
Authority 1:
Date Enacted:
Date Effective:
R.R.S. Neb. ยง 77-2704.57
05/18/2007
10/01/2007
Authority 2:
Date Enacted:
Date Effective:
L.B. 916 (2008)
04/14/2008
10/01/2008
Authority 3:
Date Enacted:
LB 561 (2009)
5/29/2009
Summary:

In May 2007, Nebraska established an exemption from the sales and use tax imposed on the gross receipts from the sale, lease, or rental of personal property for use in a community-based energy development (C-BED) project. The Tax Commissioner is required to establish filing requirements to claim the exemption. In April 2008 L.B. 916 made several amendments to this incentive, including: (1) clarified C-BED ownership criteria to recognize ownership by partnerships, cooperatives and other pass-through entities; (2) clarified that the restriction on power purchase agreement payments should be calculated according to gross* and not net receipts; (3) added language detailing the review authority of the Tax Commissioner and recovery of exempted taxes; and (4) defined local payments to include lease payments, easement payments, and real and personal property tax receipts from a C-BED project.

A C-BED project is defined as a new wind energy project that meets one of the following ownership conditions:

  • For a C-BED project that consists of more than two turbines, the project is owned by qualified owners with no single qualified owner owning more than 15% of the project and with at least 33% of the power purchase agreement payments flowing to the qualified owner or owners or local community; or
  • For a C-BED project that consists of one or two turbines, the project is owned by one or more qualified owners with at least 33% of the power purchase agreement payments flowing to a qualified owner or local community.

In addition, a resolution of support for the project must be adopted by the county board of each county in which the C-BED project is to be located or by the tribal council for a C-BED project located within the boundaries of an Indian reservation.

A qualified C-BED project owner means:

  • a Nebraska resident;
  • a limited liability company that is organized under the Limited Liability Company Act and that is entirely made up of members who are Nebraska residents;
  • a Nebraska nonprofit corporation;
  • an electric supplier(s), subject to certain limitations for a single C-BED project; or
  • a tribal council.

In separate legislation (LB 629), also enacted in May 2007, Nebraska established the Rural Community-Based Energy Development Act to authorize and encourage electric utilities to enter into power purchase agreements with C-BED project developers.

* LB 561 of 2009 established that gross power purchase agreement payments do not include debt financing if the agreement is entered into on or before December 31, 2011, and the qualified owners have a combined total of at least 33% of the equity ownership in the C-BED project.


 
Contact:
  Taxpayer Assistance
Nebraska Department of Revenue
Nebraska State Office Building
301 Centennial Mall South
Lincoln, NE 68509-4818
Phone: (800) 742-7474
Phone 2: (402) 471-5729
Web Site: http://www.revenue.ne.gov/
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Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.

Copyright 2013 - 2014 North Carolina State University, under NREL Subcontract No. XEU-0-99515-01. Permission granted only for personal or educational use, or for use by or on behalf of the U.S. government. North Carolina State University prohibits the unauthorized display, reproduction, sale, and/or distribution of all or portions of the content of the Database of State Incentives for Renewables and Efficiency (DSIRE) without prior, written consent.