Sales and Use Tax Exemption for Community Renewable Energy Projects (Nebraska)

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Last modified on February 12, 2015.

Financial Incentive Program

Place Nebraska

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
Active Incentive Yes

Implementing Sector State/Territory
Energy Category Renewable Energy Incentive Programs
Amount 100% exemption

Start Date 2008-10-01

Program Administrator Nebraska Department of Revenue

Date added to DSIRE 2007-05-31
Last DSIRE Review 2014-08-14

References DSIRE[1]


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

Incentive Contact

Contact Name Taxpayer Assistance
Department Nebraska Department of Revenue

Address Nebraska State Office Building
Address 2 301 Centennial Mall South
Place Lincoln, Nebraska
Zip/Postal Code 68509-4818
Phone (800) 742-7474
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)
Date Enacted 2007-05-18

Authority 2: R.R.S. Neb. § 70-1903, et seq.

Date Enacted 2007 (subsequently amended)

Authority 3: L.B. 402
Date Effective 2014-07-18
Date Enacted 2014-04-02

  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]


  1. 1.0 1.1  "Database of State Incentives for Renewables and Efficiency"