Ethanol Production Tax Credit

A new ethanol facility that reached a minimum annual production capacity of 100,000 gallons, before denaturing, before June 30, 2004, may be eligible for a tax credit in the form of a transferable motor vehicle tax credit certificate of $0.18 per gallon of ethanol produced. This credit is available to the facility for 96 consecutive months beginning with the first calendar month of eligibility and ending no later than June 30, 2012. Credits are available for up to 15,625,000 gallons of ethanol produced annually at each facility, and for up to 125,000,000 gallons of ethanol produced at each facility by the end of the 96-month period. Credits are only available for ethanol produced at a facility in Nebraska at which all fermentation, distillation, and dehydration takes place. Producers must have entered into an agreement with the Nebraska Tax Commissioner before April 16, 2004, to receive credits and submit the claims for credits to the Nebraska Department of Revenue within three years of the date of ethanol production, or by September 30, 2012, whichever occurs first. Other restrictions may apply. (Reference Nebraska Statutes 66-1344 and 66-1344.01)