Read the full stored bill text
LEGISLATURE OF NEBRASKA
ONE HUNDRED NINTH LEGISLATURE
SECOND SESSION
LEGISLATIVE BILL 1021
Introduced by Ibach, 44.
Read first time January 13, 2026
Committee: Revenue
A BILL FOR AN ACT relating to revenue and taxation; to amend section1
77-6203, Revised Statutes Cumulative Supplement, 2024, and section2
77-6204, Revised Statutes Supplement, 2025; to change provisions3
related to penalties, proceeds, and distributed revenue of the4
nameplate capacity tax; and to repeal the original sections.5
Be it enacted by the people of the State of Nebraska,6
LB1021
2026
LB1021
2026
-1-
Section 1. Section 77-6203, Revised Statutes Cumulative Supplement,1
2024, is amended to read: 2
77-6203 (1) The owner of a renewable energy generation facility3
annually shall pay a nameplate capacity tax equal to the total nameplate4
capacity of the commissioned renewable energy generation facility5
multiplied by a tax rate of three thousand five hundred eighteen dollars6
per megawatt. 7
(2) No tax shall be imposed on a renewable energy generation8
facility: 9
(a) Owned or operated by the federal government, the State of10
Nebraska, a public power district, a public power and irrigation11
district, an individual municipality, a registered group of12
municipalities, an electric membership association, or a cooperative; or13
(b) That is a customer-generator as defined in section 70-2002.14
(3) No tax levied pursuant to this section shall be construed to15
constitute restricted funds as defined in section 13-518 for the first16
five years after the renewable energy generation facility is17
commissioned. 18
(4) The presence of one or more renewable energy generation19
facilities or supporting infrastructure shall not be a factor in the20
assessment, determination of actual value, or classification under21
section 77-201 of the real property underlying or adjacent to such22
facilities or infrastructure. 23
(5)(a) The Department of Revenue shall collect the tax due under24
this section. 25
(b) The tax shall be imposed beginning the first calendar year the26
renewable energy generation facility is commissioned. A renewable energy27
generation facility that uses wind as the fuel source which was28
commissioned prior to July 15, 2010, shall be subject to the tax levied29
pursuant to sections 77-6201 to 77-6204 on and after January 1, 2010. The30
amount of property tax on depreciable tangible personal property31
LB1021
2026
LB1021
2026
-2-
previously paid on a renewable energy generation facility that uses wind1
as the fuel source which was commissioned prior to July 15, 2010, which2
is greater than the amount that would have been paid pursuant to sections3
77-6201 to 77-6204 from the date of commissioning until January 1, 2010,4
shall be credited against any tax due under Chapter 77, and any amount so5
credited that is unused in any tax year shall be carried over to6
subsequent tax years until fully utilized. 7
(c)(i) The tax for the first calendar year shall be prorated based8
upon the number of days remaining in the calendar year after the9
renewable energy generation facility is commissioned.10
(ii) In the first year in which a renewable energy generation11
facility is taxed or in any year in which additional commissioned12
nameplate capacity is added to a renewable energy generation facility,13
the taxes on the initial or additional nameplate capacity shall be14
prorated for the number of days remaining in the calendar year.15
(iii) When a renewable energy generation facility is decommissioned16
or made nonoperational by a change in law during a tax year, the taxes17
shall be prorated for the number of days during which the renewable18
energy generation facility was not decommissioned or was operational.19
(iv) When the capacity of a renewable energy generation facility to20
produce electricity is reduced but the renewable energy generation21
facility is not decommissioned, the nameplate capacity of the renewable22
energy generation facility is deemed to be unchanged.23
(6)(a) On March 1 of each year, the owner of a renewable energy24
generation facility shall file with the Department of Revenue a report on25
the nameplate capacity of the facility for the previous year from January26
1 through December 31. All taxes shall be due on April 1 and shall be27
delinquent if not paid on a quarterly basis on April 1 and each quarter28
thereafter. Delinquent quarterly payments shall draw interest at the rate29
provided for in section 45-104.02, as such rate may from time to time be30
adjusted. 31
LB1021
2026
LB1021
2026
-3-
(b) The owner of a renewable energy generation facility is liable1
for the taxes under this section with respect to the facility, whether or2
not the owner of the facility is the owner of the land on which the3
facility is situated. 4
(7) Failure to file a report required by subsection (6) of this5
section, filing such report late, failure to pay taxes due, or6
underpayment of such taxes shall result in a penalty of five percent of7
the amount due being imposed for each quarter the report is overdue or8
the payment is delinquent, except that the penalty shall not exceed ten9
thousand dollars. Beginning January 1, 2027, such penalty shall be10
collected by the Tax Commissioner and credited to the Department of11
Revenue Property Assessment Division Cash Fund. 12
(8) The Department of Revenue shall enforce the provisions of this13
section. The department may adopt and promulgate rules and regulations14
necessary for the implementation and enforcement of this section.15
(9) The Department of Revenue shall separately identify the proceeds16
from the tax , interest, and penalties imposed by this section , shall17
retain three percent of such proceeds for the costs of the administration18
of sections 77-6201 to 77-6204, and shall pay all remaining such proceeds19
over to the county treasurer of the county where the renewable energy20
generation facility is located within thirty days after receipt of such21
proceeds. 22
Sec. 2. Section 77-6204, Revised Statutes Supplement, 2025, is23
amended to read: 24
77-6204 (1) The county treasurer shall distribute all revenue25
received from the Department of Revenue pursuant to section 77-6203 as26
follows: 27
(a) Five percent of such revenue shall be distributed to the28
community college area in which the renewable energy generation facility29
is located; and 30
(b) The remainder of such revenue shall be distributed to local31
LB1021
2026
LB1021
2026
-4-
taxing entities which, but for such personal property tax exemption,1
would have received distribution of personal property tax revenue from2
depreciable personal property used directly in the generation of3
electricity using wind, solar, biomass, or landfill gas as the fuel4
source. 5
(2) A local taxing entity's status as eligible for distribution6
under subdivision (1)(b) of this section shall not be affected when and7
if the net book value of personal property used directly in the8
generation of electricity using wind, solar, biomass, or landfill gas as9
the fuel source becomes zero. A local taxing entity's status as eligible10
for distribution under such subdivision shall be affected by the disposal11
of all of the exempt depreciable personal property used directly in the12
generation of electricity using wind, solar, biomass, or landfill gas as13
the fuel source. 14
(3) The distribution to each eligible local taxing entity under15
subdivision (1)(b) of this section shall be calculated by determining the16
amount of taxes that the eligible local taxing entity levied during the17
taxable year and dividing this amount by the total tax levied by all of18
the eligible local taxing entities during the year. Each eligible19
entity's resulting fraction shall then be multiplied by the amount of20
revenue available for distribution pursuant to subdivision (1)(b) of this21
section to determine the portion of such revenue due each local taxing22
entity. 23
(4) Counties shall not retain any revenue collected pursuant to24
sections 77-6201 to 77-6204 for the costs of the administration of25
sections 77-6201 to 77-6204. 26
(4) The Department of Revenue shall not retain any revenue collected27
pursuant to sections 77-6201 to 77-6204 for distribution, use, transfer,28
pledge, or allocation to or from the General Fund.29
Sec. 3. Original section 77-6203, Revised Statutes Cumulative30
Supplement, 2024, and section 77-6204, Revised Statutes Supplement, 2025,31
LB1021
2026
LB1021
2026
-5-
are repealed. 1
LB1021
2026
LB1021
2026
-6-