(Nebraska) Renewable Energy Tax Credit

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Nebraska offers a production-based tax credit to any producer of electricity generated by wind, solar, geothermal, hydropower, fuel cells or methane gas. To qualify, a system must be placed into service on or after July 14, 2006. The credit allowed may be used to reduce the producer’s Nebraska income tax liability or to obtain a refund of state sales and use taxes paid by the producer.

The initial requirement that a facility be at least one megawatt in rated capacity was eliminated in 2007 by L.B. 367, which also made several other amendments. Another requirement that the facility result in zero pollution or emissions, which has prevented the use of this credit in the past, was removed by L.B. 360 of 2011.

The value of the credit is based on the amount of electricity produced, and the rate varies based on the year in which the electricity is generated according to the following schedule:

  • 0.075 cents per kilowatt-hour ($0.00075/kWh) of electricity generated after July 14, 2006 but before October 1, 2007.
  • 0.1 cent/kWh ($0.001/kWh) for electricity generated on or after October 1, 2007, and before January 1, 2010.
  • 0.075 cents/kWh ($0.00075/kWh) for electricity generated on or after January 1, 2010, and before January 1, 2013.
  • 0.05 cents/kWh ($0.0005/kWh) for electricity generated on or after January 1, 2013.

The credit may be earned for 10 years after the date that the facility is placed in operation on or after July 14, 2006.

The total amount of renewable energy tax credits that may be used by all taxpayers is limited to $50,000 without further authorization from the Nebraska Legislature.

This credit may not be claimed by a producer who receives a sales tax exemption for community-based energy development projects.

Program Overview:
State: Nebraska
Incentive Type: Personal Tax Credit
Eligible Renewable/Other Technologies: Solar Thermal Electric, Photovoltaics, Landfill Gas, Wind, Hydroelectric, Geothermal Electric, Fuel Cells, Anaerobic Digestion, Fuel Cells using Renewable Fuels
Applicable Sectors: Residential
Amount: Credits are available for a 10-year period:
$0.00075/kWh for electricity generated through 9/30/2007;
$0.001/kWh from 10/1/2007 – 12/31/2009;
$0.00075/kWh from 1/1/2010 – 12/31/2012;
$0.0005/kWh on or after 1/1/2013
Maximum Incentive: Total amount of tax credits that may be used by all taxpayers is limited to $50,000
Eligible System Size: None specified
Equipment Requirements: None specified
Program Budget: $50,000
Start Date: 7/14/2006 (amendments effective 10/01/2011)
Authority 1:
Date Enacted:
Date Effective:
R.R.S. Neb. § 77-27, 235
4/11/2006
7/14/2006 (amendments effective 10/01/2011)
Authority 2:
Date Enacted:
Date Effective:
LB 360
5/11/2011
10/1/2011
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.state.ne.us

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