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Nebraska provides a production based tax credit to producers of electricity generated by landfill gas.

Nebraska

Corporate Renewable Energy Tax Credit

Nebraska provides a production based tax credit to producers of electricity generated by landfill gas, wind, solar energy, geothermal energy, fuel cells, hydropower, or anaerobic digestion. To be eligible, a system must begin service on or after July 14, 2006. The tax credit may be used either to reduce the producer’s tax liability or to obtain a refund of state sales and use taxes paid by the producer. In 2007, the requirement that a facility be at least 1 megawatt in rated capacity was removed.

The credit is applied as follows:

• 0.1 cents per kilowatt-hour of electricity generated on or after October 1, 2007 and before Jan 1, 2010
• 0.075 cents per kilowatt-hour of electricity generated on or after January 1, 2010 and before January 1, 2013
• 0.05 cents per kilowatt-hour of electricity generated on or after January 1, 2013 and before January 1, 2018

The total amount of renewable energy tax credits that can be used by all taxpayers is limited to $750,000. The credit cannot be claimed by a producer who receives a sales tax exemption for community-based energy development projects.

For More Information Contact: Mary Hugo Nebraska Department of Revenue Nebraska State Office Building 301 Centennial Mall South Lincoln, NE 68509-4818 402-471-5790 E-mail: Mary.Hugo@nebraska.gov Web site: www.revenue.state.ne.us/tax/current/fill-in/f_3800nwkst.pdf (PDF, 2 pp., 111 KB)