Sales and Use Tax Exemption for Community Renewable Energy Projects (Nebraska)
Last modified on February 12, 2015.
Financial Incentive Program
|Name||Sales and Use Tax Exemption for Community Renewable Energy Projects|
|Incentive Type||Sales Tax Incentive|
|Applicable Sector||Commercial, Residential, Nonprofit, Construction, Utility, Tribal Government, Municipal Utility, Investor-Owned Utility, Rural Electric Cooperative, Agricultural, Retail Supplier|
|Eligible Technologies||Photovoltaics, Landfill Gas, Wind, Biomass|
|Energy Category||Renewable Energy Incentive Programs|
|Program Administrator||Nebraska Department of Revenue|
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.
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 Name||Taxpayer Assistance|
|Department||Nebraska Department of Revenue|
|Address||Nebraska State Office Building|
|Address 2||301 Centennial Mall South|
|Phone 2||(402) 471-5729|
Authorities (Please contact the if there are any file problems.)
|Authority 1:||R.R.S. Neb. § 77-2704.57|
|Date Effective||10/01/2007 (subsequently amended)|
|Authority 2:||R.R.S. Neb. § 70-1903, et seq.|
|Date Enacted||2007 (subsequently amended)|
|Authority 3:||L.B. 402|
- Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.