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 (5)
Laws and Regulations (7)

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 Legislative Bill 727, 2023)

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 EV Infrastructure Deployment Plan (Plan) to the DOT and U.S. Department of Energy (DOE) 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 Legislative Bill 562, 2023 and 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 (CNG) 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.

Point of Contact
Bryce Puck
Energy Technical Advisor
Nebraska Department of Environment and Energy
Phone: (402) 471-3683
Bryce.puck@nebraska.gov

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 Vehicle and Idle Reduction Weight Exemption

The maximum gross weight for any vehicle fueled primarily by natural gas 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

Compressed Natural Gas (CNG) Vehicle Incentives - Metropolitan Utilities District (MUD)

Residential gas customers in the Omaha area served by the MUD are eligible for a $500 rebate for the purchase of a dedicated CNG vehicle. Rebates are available on a first-come, first-served basis until December 7, 2022. Additional restrictions may apply. Commercial rebates are available on a case-by-case basis. For more information, see the MUD Rebates website.

Point of Contact
Cory Erspamer
Business Development Specialist
Metropolitan Utilities District
Phone: (402) 504-7185
Cory_erspamer@mudnebr.com

Electric Vehicle (EV) and EV Charging Station Rebates – NPPD

Nebraska Public Power District (NPPD) offers residential customers a $500 rebate for the installation of an eligible Level 2 EV charging station. NPPD also offers residential customers an additional rebate of up to $600 for the pre-wiring upgrades necessary to support EV charging stations. Eligible residential customers include single- and multi-family residences.

NPPD offers non-profit customers a 90% reimbursement for the installation of a public Level 2 or direct current fast charging (DCFC) station. New commercial construction projects are eligible for a reimbursement of 100% of electrical conduit upgrade costs required to support EV charging stations, up to $1,000. NPPD also offers business customers a rebate for EV charging stations, up to $200 per kilowatt. Businesses may receive a maximum of four rebates for Level 2 charging stations or one rebate for a DCFC station. Rebates are available on a first-come, first-served basis. For more information, including eligible EV charging stations and how to apply, see the NPPD Incentive Programs website.

Electric Vehicle (EV) Event Incentive – Nebraska Public Power District (NPPD)

NPPD offers wholesale utility, vehicle dealership, and community-based entity customers a 100% reimbursement, up to $2,000, for the cost of hosting an EV event in partnership with local utilities. For more information, including event guidelines, see the NPPD EV Promotional Events website.

Electric Vehicle (EV) and EV Charging Station Rebate – SPPD

Southern Public Power District (SPPD) offers residential customers a $500 rebate for the installation of an eligible Level 2 EV charging station. SPPD also offers residential customers an additional rebate of up to $600 for the pre-wiring upgrades necessary to support EV charging stations. Eligible residential customers include single- and multi-family residences.

SPPD offers non-profit customers a 90% reimbursement for the installation of a public Level 2 or direct current fast charging (DCFC) station. New commercial construction projects are eligible for a reimbursement of 100% of electrical conduit upgrade costs required to support EV charging stations, up to $1,000. SPPD also offers business customers a rebate for EV charging stations, up to $200 per kilowatt. Businesses may receive a maximum of four rebates for Level 2 charging stations or one rebate for a DCFC station. Rebates are available on a first-come, first-served basis. For more information, including eligible EV charging stations and how to apply, see the SPPD Incentive Programs website.

Electric Vehicle (EV) Event Incentive – Southern Public Power District (SPPD)

SPPD offers wholesale utility, vehicle dealership, and community-based entity customers a 100% reimbursement, up to $2,000, for the cost of hosting an EV event in partnership with local utilities. For more information, including event guidelines, see the SPPD EV Promotional Events website.

Laws and Regulations

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)

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)

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

A fee of $75 is required for the registration of an AFV 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 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 Legislative Bill 562, 2023)

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.