Nebraska

Incentives/Policies for Renewables & Efficiency

Property Tax Exemption for Wind Energy Generation Facilities

Last DSIRE Review: 06/19/2012

Program Overview:

State:	Nebraska
Incentive Type:	Property Tax Incentive
Eligible Renewable/Other Technologies:	Wind
Applicable Sectors:	Commercial, Residential, Local Government, State Government, Fed. Government, Municipal Utility, Rural Electric Cooperative
Amount:	100% of appreciable tangible personal property tax; payment in lieu of tax required
Maximum Incentive:	100%
Eligible System Size:	None specified
Equipment Requirements:	Wind must be used as fuel source
Start Date:	4/12/2010
Authority 1:	Neb. Rev. Stat. § 77-202(9)
Authority 2:	Neb. Rev. Stat. § 77-6203(2)(a)
Authority 3: Date Enacted: Date Effective:	Nebraska LB 1048 4/12/10 4/12/10
Authority 4:	Nebraska Directive 11-3

Summary:

Nebraska Legislative Bill 1048 (LB1048) created a nameplate capacity tax that replaced the Nebraska Department of Revenue's central assessment and taxation of the tangible personal property associated with wind energy generation facilities. LB1048 defines wind energy generation facilities as facilities that generate energy with wind as the fuel source. The nameplate capacity tax is $3,518 per installed megawatt (MW).*

Nebraska Revenue Statute § 77-6203(2)(a) goes further to exempt wind facilities from the nameplate capacity tax and the real property tax assessment if they are owned by:

the federal government
the State of Nebraska
a public power district
a public power and irrigation district
a municipality
a registered group of municipalities
an electric membership association
a cooperative
an electricity customer who installs a wind turbine on their side of the meter**

In addition to available state tax credits, any depreciable tangible personal property used directly in the generation of electricity using wind as the fuel source shall be exempt from the property tax levied on depreciable tangible personal property. For the purposes of this particular credit, depreciable tangible personal property includes, but is not limited to, wind turbines, rotors and blades, towers, trackers, generating equipment, transmission components, substations, supporting structures or racks, inverters, and other system components such as wiring, control systems, switchgears, and generator step-up transformers. All real property will be locally assessed by the county assessor.

While supporting structures to wind turbines are included in this exemption, real property upon which wind generation facilities are based will not be exempt from property taxes. Real property associated with wind energy generation includes, but is not limited to, concrete pads, foundations, operations and maintenance buildings, road construction, leasehold value, and lease payments. These portions will be assessed at 100% of actual value.

* See, Nameplate Capacity Regulations at: http://www.revenue.ne.gov/legal/regs/nameplate.html

** See Neb. Rev. Stat § 77-6203(2)(b) and Neb. Rev. Stat § 70-2002

Contact:

Nebraska Department of Revenue
Nebraska State Office Building
301 Centennial Mall South
Lincoln, NE 68509-4818
Phone: (800) 742-7474
Phone 2: (402) 471-5729
Web Site: http://www.revenue.state.ne.us/

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