Sales and Use Tax Exemption for Renewable Energy Property

December 05, 2023


Nebraska allows for a refund of the sales and use taxes paid for a renewable energy system used to produce electricity for sale. Investment in qualified property of at least thirty million dollars or for the production of electricity by using one or more sources of renewable energy to produce electricity for sale as described in subdivision (1)(j) of section 77-5715, investment in qualified property of at least twenty million dollars. The law describes eligible sources of renewable energy as including, but not limited to, wind, solar, geothermal, hydroelectric, biomass, and transmutation of elements. This refund does not apply to the first 1.5% of sales tax charged by a municipality.  

Note that partial recapture of benefits is possible if the taxpayer or tax-paying entity does not maintain the number of equivalent employees as they had in the base year. 

More information can be found here.

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: Nebraska
Incentive Type: Sales Tax Incentive
Web Site:
Administrator: Nebraska Department of Revenue
Start Date: 06/04/2013
Eligible Renewable/Other Technologies:
  • Geothermal Electric
  • Solar Thermal Electric
  • Solar Photovoltaics
  • Wind (All)
  • Biomass
  • Hydroelectric
  • Hydroelectric (Small)
  • Anaerobic Digestion
  • Other Distributed Generation Technologies
Incentive Amount: 100%
Equipment Requirements: Equipment investment must meet or exceed $20,000,000


Name: N.R.S. 77-5725
Date Enacted: 06/04/2013
Effective Date: 06/04/2013


Name: Taxpayer Assistance
Organization: Nebraska Department of Revenue
Address: Nebraska State Office Building
Lincoln NE 68509-4818
Phone: (800) 742-7474

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.