Sales and Use Tax Exemption for Renewable Energy Property
Administered by: Nebraska Department of Revenue
Quick Summary
This tax incentive applies to large-scale renewable energy projects (wind, solar, geothermal, biomass, hydroelectric, and related technologies) that sell electricity, not residential or small commercial installations. If you are part of a business or utility investing at least $20–30 million in qualified renewable property, you may qualify for a refund of sales and use taxes paid on equipment and materials, though the first 1.5% of municipal sales tax is not refunded.
AI-generated summary • Updated 7/12/2026
Program Details
- Program ID
- 5427
- Last Updated
- 12/10/2024
Eligibility
Program Summary
Nebraska allows for a refund of the sales and use taxes paid for a renewable energy system used to produce electricity for sale. Investment in qualified property of at least thirty million dollars or for the production of electricity by using one or more sources of renewable energy to produce electricity for sale as described in subdivision (1)(j) of section 77-5715, investment in qualified property of at least twenty million dollars. The law describes eligible sources of renewable energy as including, but not limited to, wind, solar, geothermal, hydroelectric, biomass, and transmutation of elements. This refund does not apply to the first 1.5% of sales tax charged by a municipality. Note that partial recapture of benefits is possible if the taxpayer or tax-paying entity does not maintain the number of equivalent employees as they had in the base year. More information can be found here.
Contact & Resources
Please verify current program details with the administering agency before making any financial decisions.