Ethanol Laws and Incentives in Nebraska
The list below contains summaries of all Nebraska laws and incentives related to ethanol.
State Incentives
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.
Point of Contact
Bryce Puck
Energy Technical Advisor
Nebraska Department of Environment and Energy
Phone: (402) 471-3683
Bryce.puck@nebraska.gov
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 Legislative Bill 562, 2023 and Nebraska Revised Statutes 77-7001 through 77-7008)
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)
Laws and Regulations
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 Legislative Bill 562, 2023)
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 Legislative Bill 562, 2023)
More Laws and Incentives
To find laws and incentives for other alternative fuels and advanced vehicles, search all laws and incentives.