Nebraska Laws and Incentives

Listed below are the summaries of all current Nebraska laws, incentives, regulations, funding opportunities, and other initiatives related to alternative fuels and vehicles, advanced technologies, or air quality. You can go directly to summaries of:

• State Incentives (9)
• Utility / Private Incentives (7)
• Laws and Regulations (12)

State Incentives

Biodiesel Retailer Tax Credit

Retail dealers that sell 100% biodiesel (B100) at a service station are eligible for a tax credit of $0.14 per gallon. B100 is defined as a pure biodiesel containing mono-alkyl esters of long chain fatty acids derived from vegetable oils or animal fats that meets ASTM standard D6751. The tax credit is refundable. Additional requirements apply. For more information, see the Nebraska Department of Revenue Nebraska Biodiesel Tax Credit website.

(Reference Nebraska Revised Statutes 77-7009 through 77-7106)

Nebraska's National Electric Vehicle Infrastructure (NEVI) Planning

The U.S. Department of Transportation’s (DOT) NEVI Formula Program requires the Nebraska Department of Transportation (NDOT) to submit an annual electric vehicle (EV) Infrastructure Deployment Plan (Plan) to the DOT and U.S. Department of Energy Joint Office of Energy and Transportation (Joint Office), describing how the state intends to distribute NEVI funds. The submitted plans must be established according to NEVI guidance.

For more information about Nebraska’s NEVI planning process, see the NDOT NEVI website. To review Nebraska’s NEVI plan, see the Joint Office State Plans for EV Charging website.

Ethanol Blending Tax Credit

Beginning January 1, 2022, motor fuel retailers that dispense high-level blends of ethanol in gasoline may be eligible to receive a tax credit. Credit amounts vary by year and blend level and apply to gallons sold in the previous calendar year. Beginning 2024, blends of 15% ethanol (E15) are eligible for $0.08 per gallon and blends of 25% ethanol (E25) and higher are eligible for $0.08 per gallon. Additional conditions apply. The tax credit expires December 31, 2028.

(Reference Nebraska Revised Statutes 77-7001 through 77-7008)

Diesel Refuse Truck Replacement Program

The Nebraska Department of Environment and Energy (NDEE) will provide funding for the replacement of medium- to heavy-duty diesel refuse, local freight, delivery, and maintenance trucks. Old trucks must be replaced with 2019 or newer model year compressed natural gas or diesel engines pursuant to California Air Resources Board Optional Low-NOx Standards. The program is funded by Nebraska’s portion of the Volkswagen Environmental Mitigation Trust and the Diesel Emissions Reduction Act Program. For more information, including application details, visit the NDEE Volkswagen Settlement and Clean Diesel Rebate Program websites.

Diesel School Bus Replacement Program

The Nebraska Department of Environment and Energy (NDEE) will provide funding for the replacement of older diesel school buses. Model year 2018 and older school buses must be replaced with 2019 or newer model year propane, gasoline, or diesel engines pursuant to California Air Resources Board Optional Low-NOx Standards. The program is funded by Nebraska’s portion of the Volkswagen Environmental Mitigation Trust and the Diesel Emissions Reduction Act Program. For more information, including application details, visit the NDEE Volkswagen Settlement and Clean Diesel Rebate Program websites.

Alternative Fuel Vehicle (AFV) and Fueling Infrastructure Loans

The Nebraska Energy Office administers the Dollar and Energy Saving Loan Program, which makes low-cost loans available for a variety of alternative fuel projects, including the replacement of conventional vehicles with AFVs; the purchase of new AFVs; the conversion of conventional vehicles to operate on alternative fuels; and the construction or purchase of fueling stations or equipment. The maximum loan amount is $500,000 per borrower, and the interest rate is 5% or less. For more information, see the Dollar and Energy Saving Loans website.

Alternative Fuel Tax Refund

The Nebraska Department of Revenue will refund taxes paid on compressed natural gas, liquefied natural gas, and propane when the fuel is used to operate buses capable of carrying seven or more passengers within or near a municipality.

(Reference Nebraska Revised Statutes 66-6,100 and 66-6,109.01)

Ethanol and Biodiesel Tax Exemption

Motor fuels sold to an ethanol or biodiesel production facility and motor fuels manufactured at and sold from an ethanol or biodiesel facility are exempt from certain motor fuel tax laws enforced by the Motor Fuels Division of the Nebraska Department of Revenue.

(Reference Nebraska Revised Statutes 66-489 and 66-496)

Natural Gas and Electric Vehicle and Idle Reduction Weight Exemption

The maximum gross weight for any vehicle fueled primarily by natural gas or electric battery power may exceed the state’s gross weight limit by the difference between the weight of the natural gas fueling tank and fueling system and the weight of a comparable diesel fueling tank and fueling system, up to 2,000 pounds per vehicle.

The maximum gross weight limit and axle weight limit for any vehicle or combination of vehicles equipped with idle reduction technology may exceed the state’s gross weight limit by up to 550 pounds per vehicle to compensate for the additional weight of the idle reduction technology.

(Reference Nebraska Revised Statutes 60-6,294)

Utility / Private Incentives

Black Hills Energy - Nebraska

Black Hills Energy is an investor-owned utility (IOU) that operates in multiple states. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Black Hills Energy website.

Residential Incentives

Non-Residential Incentives

Metropolitan Utilities District (MUD) - Nebraska

Metropolitan Utilities District (MUD) is a municipal utility that operates in Nebraska. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles.

Residential Incentives

Non-Residential Incentives

MidAmerican Energy - Nebraska

MidAmerican Energy is an investor-owned utility (IOU) that operates in multiple states. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the MidAmerican Energy website.

Residential Incentives

Non-Residential Incentives

Nebraska Public Power District (NPPD) - Nebraska

Nebraska Public Power District (NPPD) is a municipal utility that operates in Nebraska. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Nebraska Public Power District (NPPD) website.

Residential Incentives

Non-Residential Incentives

Northwestern Energy - Nebraska

Northwestern Energy is an investor-owned utility (IOU) that operates in multiple states. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Northwestern Energy website.

Residential Incentives

Non-Residential Incentives

Omaha Public Power District (OPPD) - Nebraska

Omaha Public Power District (OPPD) is a municipal utility that operates in Nebraska. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles.

Residential Incentives

Non-Residential Incentives

Southern Public Power District (SPPD) - Nebraska

Southern Public Power District (SPPD) is a municipal utility that operates in Nebraska. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Southern Public Power District (SPPD) website.

Residential Incentives

Non-Residential Incentives

Laws and Regulations

Electric Vehicle (EV) Charger Certificate

Entities that receive state funding for the installation or purchase of commercial EV chargers must provide certification verifying that all component parts of the EV charger are not to be produced, manufactured, or assembled by a restricted entity. A restricted entity is defined as any person or entity identified on the sanction’s lists maintained by the Office of Foreign Assets Control of the United States Department of the Treasury.

(Reference Legislative Bill 1317, 2024)

Autonomous Vehicle Operation

A fully autonomous vehicle or a driverless-capable vehicle may operate without a driver present in the vehicle, if the vehicle is capable of operating in compliance with traffic and motor safety laws and regulations, is registered, and is insured. When a driver is present, the driver must be licensed properly if manual control of the vehicle is necessary. Other conditions apply.

(Reference Nebraska Revised Statutes 60-3301 through 60-3311)

Electric Vehicle (EV) Charger Certification

EV chargers that are funded or authorized by a Nebraska state agency or by the federal government must be installed by a contractor that holds an EV Infrastructure Training Program certification. 

(Reference Legislative Bill 1317, 2024)

Low-Speed Vehicle Access to Roadways

Low-speed vehicles may only travel on roadways with a posted speed limit of up to 35 miles per hour (mph) but may cross highways with a posted speed limit of over 35 mph. A low-speed vehicle is any four-wheeled motor vehicle with a gross vehicle weight rating of up to 3,000 pounds and a top speed of at least 20 mph but not more than 25 mph. A low-speed vehicle must be manufactured in compliance with federal standards for low-speed vehicles as referenced in Title 49 of the U.S. Code of Federal Regulations, section 571.500.

(Reference Nebraska Revised Statutes 60-119.01 and 60-6,380)

Direct Current (DC) Fast Charger Requirements

A utility may only develop, own, maintain, or operate a DC fast charger if:

• The DC fast charger is located at least 15 miles from a privately owned DC fast charger that already exists or is under construction;

• The DC fast charger is located at least one mile from an Alternative Fuel Corridor designated by the U.S. Department of Transportation’s Federal Highway Administration;

• Before beginning construction of a DC fast charger, the utility conducts a right of first refusal process; and,

• The utility provides EV charging under rates, tolls, rents, and charges that are fair, reasonable, and nondiscriminatory, and available to all DC fast charger operators in the utility’s service territory.

Beginning January 1, 2028, a utility may only develop, own, maintain, or operate a DC fast charger if:

• The DC fast charger is located at least 10 miles from a privately owned DC fast charger that is already in commercial operation or has a pending building permit and interconnection request to the electric supplier; and,

• The utility provides EV charging under rates, tolls, rents, and charges that are fair, reasonable, and nondiscriminatory, and available to all DC fast charger operators in the utility’s service territory.

(Reference Legislative Bill 1317, 2024)

Electric Vehicle (EV) Charging Tax

Beginning January 1, 2028, the retail sale of electricity for EV charging is subject to an excise tax of $0.03 per kilowatt hour.

(Reference Legislative Bill 1317, 2024)

Natural Gas Motor Vehicle Fuel Promotion

The Natural Gas Fuel Board (Board) was created to advise the Nebraska Energy Office regarding the promotion of natural gas as a motor vehicle fuel. The Board will provide recommendations relating to:

• The distribution, infrastructure, and workforce development necessary for widespread use of natural gas as a motor vehicle fuel;
• Loans, grants, and tax incentives that will encourage the use of natural gas as a motor vehicle fuel by individuals and public and private fleets; and,
• Other matters as the Board deems appropriate.

(Reference Nebraska Revised Statutes 66-2001)

Alternative Fuel Vehicle (AFV) Registration Fee

In addition to standard registration fees, AFV owners must pay a registration fee of $150 and plug-in hybrid electric vehicle owners must pay an annual fee of $75. An AFV is defined as a vehicle that operates on electricity, solar power, or any other source of energy not otherwise taxed under the state motor fuel tax laws. Compressed natural gas, liquefied natural gas, and propane are not subject to this requirement.

(Reference Legislative Bill 1317, 2024 and Nebraska Revised Statutes 60-306 and 60-3,191)

Retail E15 Access Requirements

Beginning January 1, 2024, newly constructed retail gasoline fueling stations or fueling stations that replace more than 80% of the motor fuel storage and dispensing infrastructure, must advertise and sell E15 from at least 50% of gasoline dispensers. The Nebraska Department of Agriculture and Land Stewardship may refuse to renew, suspend, or revoke retail fuel licenses for failure to comply with access requirements. Additional requirements and exemptions may apply.

(Reference Nebraska Revised Statutes 66-2208 through 66-2218)

Ethanol Blend Rate

Beginning 2025, the Nebraska Department of Revenue and Department of Environment must issue an annual joint report that identifies the statewide ethanol blend rate. The statewide ethanol blend rate shall be equal to the average percentage of ethanol contained in each gallon of motor fuel sold in Nebraska. Retail dealers must provide a quarterly report of the number of gallons of each type of motor fuel sold and the percentage of ethanol in each gallon to the Department of Revenue.

(Reference Nebraska Revised Statutes 66-2216)

Alternative Fuel Excise Tax

An excise tax of $0.095 per gallon or gasoline gallon equivalent (GGE) is imposed on all compressed natural gas (CNG), liquefied natural gas (LNG), and propane sold for use in registered motor vehicles. Additionally, each retailer of such fuel must pay an excise tax of $0.068 per gallon or GGE on all CNG, LNG, and propane fuel sold for use in registered motor vehicles. Additional taxes as specified annually under these statutes may apply.

(Reference Nebraska Revised Statutes 66-6,102; 66-6,107; and 66-6,109)

Public Utility Definition

A person, partnership, or corporation, who operates an electric vehicle (EV) charger is not defined as a public utility. Commercial EV charger operators are subject to the interconnection requirements, electric rates, and service regulations of the utility in the utility’s service area where the EV charger is located. Beginning January 1, 2028, an excise tax of $0.03 per kilowatt-hour applies to electricity sold by commercial EV chargers.

(Reference Legislative Bill 1317, 2024)