On June 4, 2013, Nebraska Governor Dave Heineman signed into
law a bill (LB104) designed to incentivize the development of renewable energy
in the state by exempting certain purchases of renewable energy equipment and
other project costs from the state's 5.5 percent sales tax. The bill defines
sources of renewable energy to include wind, solar, geothermal, hydroelectric
and transmutation of elements. Under the new law, prospective renewable energy
developers will be required to invest a minimum of $20 million in qualified
property in the state to be eligible for the exemption. Separate proposals to
limit the benefit of the exemption to those spending a percentage of project
costs using Nebraska-made materials, and to those spending a percentage of
gross revenues earned with Nebraska businesses or individuals, both fell flat
and are not included in the final law. The bill falls under the Nebraska
Advantage Act of 2006 and takes effect immediately.
