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Nebraska

Nebraska

Incentives/Policies for Renewables & Efficiency

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Sales and Use Tax Exemption for Community Renewable Energy Projects   

Last DSIRE Review: 08/14/2014
Program Overview:
State: Nebraska
Incentive Type: Sales Tax Incentive
Eligible Renewable/Other Technologies: Photovoltaics, Landfill Gas, Wind, Biomass
Applicable Sectors: Commercial, Residential, Nonprofit, Construction, Utility, Tribal Government, Municipal Utility, Investor-Owned Utility, Rural Electric Cooperative, Agricultural, Retail Supplier
Amount:100% exemption
Start Date:10/01/2008
Authority 1:
Date Enacted:
Date Effective:
R.R.S. Neb. § 77-2704.57
05/18/2007
10/01/2007 (subsequently amended)
Authority 2:
Date Enacted:
R.R.S. Neb. § 70-1903, et seq.
2007 (subsequently amended)
Authority 3:
Date Enacted:
Date Effective:
L.B. 402
04/02/2014
07/18/2014
Summary:

Note: In April 2014, the Nebraska governor signed L.B. 402, which significantly changed eligibility requirements and statutory provisions related to community-based energy development projects. Among the most significant changes is that projects eligible for the sales and use tax exemption now include energy projects related to wind, solar, biomass, or landfill gas fuel sources. Previously, only wind projects were eligible.  

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. Nebraska also enacted the Rural Community-Based Energy Development Act (L.B. 629) to authorize and encourage electric utilities to enter into power purchase agreements with C-BED project developers.

To claim the exemption, filing requirements imposed by the Tax Commissioner must be met.

Eligible Projects

A C-BED project is defined as a new energy generation project using wind, solar, biomass, or landfill gas as the fuel source that has at least 25% of the gross power purchase agreement payments flowing to the qualified owner or owners or as payments to the local community and has a resolution of support adopted by the county board of each county in which the C-BED project is located or by the tribal council for a C-BED project located within the boundaries of an Indian reservation.

“Payments to the local community” include, but are not limited to, lease and easement payments part of a C-BED project; contract payments to Nebraska companies that meet specific statutory requirements for services, materials, equipment, and components necessary to permit or construct the C-BED project; other parts, materials, or components that are manufactured, assembled, or fabricated in Nebraska not included above.

Qualified Project Owners

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;
  • a tribal council;
  • a domestic corporation domiciled in Nebraska; or
  • a cooperative corporation domiciled in Nebraska

 
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.