Ethanol Production Incentive

June 08, 2004


New ethanol facilities in Nebraska producing at a minimum rate of 100,000 gallons annually, before denaturing, on or before June 30, 2004 are eligible to receive a transferable fuel tax credit of 18 cents per gallon for 96 consecutive months if they were not in production on or before September 1, 2001. Payments begin with the first calendar month for which the facility is eligible to receive such credit and end not later than June 30, 2012. Facilities are eligible to receive payments for 48 consecutive months until June 30, 2008 if the facility did not received credits prior to June 1, 1999. Up to 15,625,000 gallons of ethanol produced annually at a facility and up to 125,000,000 gallons of ethanol produced at a facility by the end of the payment period are eligible for credits. Previously, facilities expanding production were eligible to receive a credit of 7.5 cents per gallon of ethanol, before denaturing, for new production for up to 36 consecutive months. However, this credit expired on December 31, 2003.

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: Nebraska
Incentive Type: Corporate Tax Credit
Web Site:
Administrator: Nebraska Department of Revenue
Start Date: 1993
Eligible Renewable/Other Technologies:
Incentive Amount: 18 cents/gallon
Maximum Incentive: Varies; see below


Name: R.R.S. Neb. § 66-1344
Date Enacted: 1990
Effective Date: 1993
Expiration Date: Varies by provision


Name: Janet Lake
Organization: Nebraska Department of Revenue
Address: P.O. Box 98904
Lincoln NE 68509-8904
Phone: (402) 471-5678
Name: Todd Sneller
Organization: Nebraska Ethanol Authority
Address: P.O. Box 94922
Lincoln NE 68509
Phone: (402) 471-2941

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.