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LEGISLATURE OF NEBRASKA
ONE HUNDRED NINTH LEGISLATURE
SECOND SESSION
LEGISLATIVE BILL 1193
Introduced by Prokop, 27; Bostar, 29.
Read first time January 21, 2026
Committee: Revenue
A BILL FOR AN ACT relating to electricity; to amend sections 77-105 and1
77-6201, Reissue Revised Statutes of Nebraska, sections 77-6202 and2
77-6203, Revised Statutes Cumulative Supplement, 2024, and sections3
13-518, 70-1001.01, 77-202, and 77-6204, Revised Statutes4
Supplement, 2025; to state legislative findings and declarations; to5
define and redefine terms; to provide regulation of and requirements6
for energy storage resources; to change provisions relating to7
property tax exemptions and the nameplate capacity tax; to harmonize8
provisions; to provide an operative date; and to repeal the original9
sections. 10
Be it enacted by the people of the State of Nebraska,11
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Section 1. Section 13-518, Revised Statutes Supplement, 2025, is1
amended to read: 2
13-518 For purposes of sections 13-518 to 13-522:3
(1) Allowable growth means (a) for governmental units other than4
community colleges, the percentage increase in taxable valuation in5
excess of the base limitation established under section 77-3446, if any,6
due to (i) improvements to real property as a result of new construction7
and additions to existing buildings, (ii) any other improvements to real8
property which increase the value of such property, (iii) any increase in9
valuation due to annexation of real property by the governmental unit,10
(iv) a change in the use of real property, (v) any increase in personal11
property valuation over the prior year, and (vi) the accumulated excess12
valuation over the redevelopment project valuation described in section13
18-2147 of the Community Development Law for redevelopment projects14
within the governmental unit in the year immediately after the division15
of taxes for such redevelopment project has ended and (b) for community16
colleges, the percentage increase in excess of the base limitation, if17
any, in full-time equivalent students from the second year to the first18
year preceding the year for which the budget is being determined;19
(2) Capital improvements means (a) acquisition of real property or20
(b) acquisition, construction, or extension of any improvements on real21
property; 22
(3) Governing body has the same meaning as in section 13-503, except23
that for fiscal years beginning on or after July 1, 2025, such term shall24
not include the governing body of any county, city, or village;25
(4) Governmental unit means every political subdivision which has26
authority to levy a property tax or authority to request levy authority27
under section 77-3443, except that such term shall not include (a)28
sanitary and improvement districts which have been in existence for five29
years or less, (b) school districts, or (c) for fiscal years beginning on30
or after July 1, 2025, counties, cities, or villages;31
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(5) Qualified sinking fund means a fund or funds maintained1
separately from the general fund to pay for acquisition or replacement of2
tangible personal property with a useful life of five years or more which3
is to be undertaken in the future but is to be paid for in part or in4
total in advance using periodic payments into the fund. The term includes5
sinking funds under subdivision (13) of section 35-508 for firefighting6
and rescue equipment or apparatus; 7
(6) Restricted funds means (a) property tax, excluding any amounts8
refunded to taxpayers, (b) payments in lieu of property taxes, (c) local9
option sales taxes, (d) motor vehicle taxes, (e) state aid, (f) transfers10
of surpluses from any user fee, permit fee, or regulatory fee if the fee11
surplus is transferred to fund a service or function not directly related12
to the fee and the costs of the activity funded from the fee, (g) any13
funds excluded from restricted funds for the prior year because they were14
budgeted for capital improvements but which were not spent and are not15
expected to be spent for capital improvements, (h) the tax provided in16
sections 77-27,223 to 77-27,227 beginning in the second fiscal year in17
which the county will receive a full year of receipts, and (i) any excess18
tax collections returned to the county under section 77-1776. Funds19
received pursuant to the nameplate capacity tax levied under section20
77-6203 for the first five years after a renewable energy generation21
facility or energy storage resource has been commissioned are22
nonrestricted funds; and 23
(7) State aid means: 24
(a) For all governmental units, state aid paid pursuant to sections25
60-3,202 and 77-3523 and reimbursement provided pursuant to section26
77-1239; 27
(b) For municipalities, state aid to municipalities paid pursuant to28
sections 39-2501 to 39-2520, 60-3,190, and 77-27,139.04 and insurance29
premium tax paid to municipalities; 30
(c) For counties, state aid to counties paid pursuant to sections31
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60-3,184 to 60-3,190, insurance premium tax paid to counties, and1
reimbursements to counties from funds appropriated pursuant to section2
29-3933; 3
(d) For community colleges, state aid to community colleges paid4
pursuant to the Community College Aid Act; 5
(e) For educational service units, state aid appropriated under6
sections 79-1241.01 and 79-1241.03; and 7
(f) For local public health departments as defined in section8
71-1626, state aid as distributed under section 71-1628.08.9
Sec. 2. Section 70-1001.01, Revised Statutes Supplement, 2025, is10
amended to read: 11
70-1001.01 For purposes of sections 70-1001 to 70-1028.02 and12
section 3 of this act, unless the context otherwise requires:13
(1) Board means the Nebraska Power Review Board;14
(2) Commercial electric vehicle charging station means equipment15
designed to provide electricity for a fee for the charging of an electric16
vehicle or a plug-in hybrid electric vehicle, including an electric17
vehicle direct-current charger or a super-fast charger, any successor18
technology, and all components thereof. Commercial electric vehicle19
charging station does not include the residence of a person where an20
electric vehicle or a plug-in hybrid electric vehicle is charged if no21
customer usage fee is charged; 22
(3) Commercial electric vehicle charging station operator means a23
person, partnership, corporation, or other business entity or political24
subdivision that operates a commercial electric vehicle charging station;25
(4) Direct-current, fast-charging station means a publicly available26
charging system capable of delivering at least fifty kilowatts of direct-27
current electrical power to an electric vehicle's rechargeable battery at28
a voltage of two hundred volts or greater; 29
(5) Direct-current, fast-charging station operator means a person,30
partnership, corporation, or other business entity that operates a31
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direct-current, fast-charging station open to the public. The term does1
not include an electric supplier or a political subdivision;2
(6) Electric supplier or supplier of electricity means any legal3
entity supplying, producing, or distributing electricity within the state4
for sale at wholesale or retail. Electric supplier does not include a5
commercial electric vehicle charging station operator that is a private6
person or privately owned partnership, privately owned corporation, or7
other privately owned business; 8
(7) Electronic-related means relating to electronic devices,9
circuits, or similar systems, or the components of such electronic10
devices, circuits, or similar systems, that require electrical currents11
or electromagnetism to operate; 12
(8) Foreign adversary means a foreign government or foreign13
nongovernment person determined to be a foreign adversary pursuant to 1514
C.F.R. 791.4, as such regulation existed on February 7, 2025;15
(9) Military installation means: 16
(a) A United States Air Force ballistic missile silo located within17
the geographic area described in 31 C.F.R. 802.211(b)(3), as such18
regulation existed on January 1, 2025; or 19
(b) A United States Air Force base described in 31 C.F.R.20
802.227(c), as such regulation existed on January 1, 2025;21
(10) Plug-in hybrid electric vehicle has the same meaning as in22
section 60-345.01; 23
(11) Private electric supplier means an electric supplier producing24
electricity from a privately developed renewable energy generation25
facility that is not a public power district, a public power and26
irrigation district, a municipality, a registered group of27
municipalities, an electric cooperative, an electric membership28
association, any other governmental entity, or any combination thereof. A29
private electric supplier is limited to the development of those30
facilities as provided in subdivision (12) of this section;31
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(12) Privately developed renewable energy generation facility means1
and is limited to a facility that (a) generates electricity using solar,2
wind, geothermal, biomass, landfill gas, or biogas, including all3
electrically connected equipment used to produce, collect, and store the4
facility output up to and including the transformer that steps up the5
voltage to sixty thousand volts or greater, and including supporting6
structures, buildings, and roads, unless otherwise agreed to in a joint7
transmission development agreement, (b) is developed, constructed, and8
owned, in whole or in part, by one or more private electric suppliers,9
and (c) is not wholly owned by a public power district, a public power10
and irrigation district, a municipality, a registered group of11
municipalities, an electric cooperative, an electric membership12
association, any other governmental entity, or any combination thereof;13
(13) Regional transmission organization means an entity independent14
from those entities generating or marketing electricity at wholesale or15
retail, which has operational control over the electric transmission16
lines in a designated geographic area in order to reduce constraints in17
the flow of electricity and ensure that all power suppliers have open18
access to transmission lines for the transmission of electricity;19
(14) Reliable or reliability means the ability of an electric20
supplier to supply the aggregate electric power and energy requirements21
of its electricity consumers in Nebraska at all times under normal22
operating conditions, taking into account scheduled and unscheduled23
outages, including sudden disturbances or unanticipated loss of system24
components that are to be reasonably expected for any electric utility25
following prudent utility practices, recognizing certain weather26
conditions and other contingencies may cause outages at the distribution,27
transmission, and generation level; 28
(15) Representative organization means an organization designated by29
the board and organized for the purpose of providing joint planning and30
encouraging maximum cooperation and coordination among electric31
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suppliers. Such organization shall represent electric suppliers owning a1
combined electric generation plant accredited capacity of at least ninety2
percent of the total electric generation plant accredited capacity3
constructed and in operation within the state; 4
(16) State means the State of Nebraska; and 5
(17) Unbundled retail rates means the separation of utility bills6
into the individual price components for which an electric supplier7
charges its retail customers, including, but not limited to, the separate8
charges for the generation, transmission, and distribution of9
electricity. 10
Sec. 3. (1) The Legislature finds and declares that:11
(a) The nameplate capacity tax established in 2010 has succeeded at12
generating revenue for Nebraska residents based on the nameplate capacity13
of privately developed renewable energy generation facilities;14
(b) Privately developed energy storage resources can generate15
similar tax revenue, support economic development in the state, and16
strengthen the electric grid by improving capacity and reliability. These17
benefits help all Nebraskans. It is the policy of the state to encourage18
investment in the state and economic development; and19
(c) To benefit the citizens of Nebraska, energy storage resources20
should be subject to the nameplate capacity tax and protected from any21
foreign adversary's control. 22
(2) For purposes of this section: 23
(a) Associated energy storage resource means any energy storage24
resource that is: 25
(i) Electrically connected to a privately developed renewable energy26
generation facility; 27
(ii) Located on the same premises or in the immediate vicinity of28
such facility; 29
(iii) Jointly owned or contractually affiliated with the facility;30
(iv) Primarily intended to store the electric energy produced at the31
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facility; and 1
(v) Rated in combination with all associated energy storage2
resources of the facility and the facility itself at an aggregate3
capacity no greater than the rated capacity of the facility;4
(b)(i) Energy storage resource means a resource capable of:5
(A) Receiving and transmitting electric energy to and from the6
electrical grid or receiving electric energy from a generation resource7
with which the energy storage resource is associated; and8
(B) Storing electric energy for later injection of electric energy9
into the electrical grid. 10
(ii) Energy storage resource does not include any device or11
equipment intended solely to: 12
(A) Inject or absorb reactive power, including any capacitor and13
synchronous condenser; or 14
(B) Provide power for electric vehicles; 15
(c) Scrutinized company has the same meaning as in section 73-903;16
and 17
(d) Standalone energy storage resource means a publicly or privately18
owned energy storage resource that is not an associated energy storage19
resource. 20
(3)(a) A standalone energy storage resource shall be treated as an21
electric generation facility that requires an application filed with and22
is eligible for approval by the board pursuant to sections 70-1012 to23
70-1016. 24
(b) The owner of a standalone energy storage resource, whether25
publicly or privately owned, shall be treated as an electric supplier for26
purposes of sections 70-1012 to 70-1016. 27
(c)(i) An associated energy storage resource shall be treated as28
part of the privately developed renewable energy generation facility with29
which the energy storage resource is associated for purposes of sections30
70-1012 to 70-1016. 31
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(ii) If an associated energy storage resource is constructed or1
installed after the construction of the privately developed renewable2
energy generation facility with which the energy storage resource is3
associated, then no less than thirty days prior to the commencement of4
construction of the associated energy storage resource, the owner of the5
associated energy storage resource shall provide notification and6
certification to the board that satisfies the notification and7
certification requirements of subdivision (2)(a) of section 70-1014.028
with respect to such resource. 9
(iii) Within ten days after receipt of such notification, the10
executive director of the board shall issue a written acknowledgment that11
the associated energy storage resource is part of the privately developed12
renewable energy generation facility and is exempt from sections 70-101213
to 70-1014.01 if such facility remains in compliance with the14
requirements of this section. 15
(iv) When a privately developed renewable energy generation facility16
is decommissioned, the exemption from sections 70-1012 to 70-1014.01 for17
all associated energy storage resources of the facility shall end.18
(4) Property owned, used, or operated as part of an energy storage19
resource shall not be subject to eminent domain by any consumer-owned20
electric supplier operating in the State of Nebraska.21
(5)(a) Any energy storage resource in the state shall comply with22
the minimum codes and standards for energy storage resource equipment or23
facilities in effect at the time of construction of the resource24
established by the International Fire Code, as adopted and amended by the25
State Fire Marshal, and National Fire Protection Association 855,26
Standard for the Installation of Stationary Energy Storage Systems.27
(b) Where a conflict exists between the International Fire Code and28
National Fire Protection Association 855, Standard for the Installation29
of Stationary Energy Storage Systems, National Fire Protection30
Association 855, Standard for the Installation of Stationary Energy31
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Storage Systems, shall control. 1
(6) Any energy storage resources in this state, other than energy2
storage resources installed in single-family or two-family dwellings as3
defined in National Fire Protection Association 855, Standard for the4
Installation of Stationary Energy Storage Systems, shall have and5
maintain, at an onsite location accessible to local first responders, a6
site-specific emergency operations plan. The site-specific emergency7
operations plan shall include: 8
(a) Identification of potential risks and hazards specific to the9
site; 10
(b) Hazard mitigation measures; 11
(c) Procedures for the safe shutdown, deenergizing, or isolation of12
equipment and systems under emergency conditions, including emergency13
procedures to be followed in case of fire; 14
(d) Procedures for handling equipment damaged in a fire or other15
emergency event; 16
(e) Procedures and schedules for conducting drills using the17
procedures described in this subsection and documentation related to the18
performance of the drills; 19
(f) Procedures for communication between the operator of the energy20
storage resource and first responders, including procedures that21
facilitate communication between first responders and emergency contacts22
for the operator; and 23
(g) Emergency operations protocols to ensure safety during critical24
events, including protocols that provide for the safety of nearby25
residents, neighboring properties, first responders, and the environment,26
and measures to mitigate or prevent pollution of air, soil, groundwater,27
and surface water. 28
(7) Before an energy storage resource commences operation, its owner29
shall provide the site-specific emergency operations plan of the resource30
to the local agency that is responsible for providing fire protection31
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services in the area. 1
(8) Every energy storage resource owner in the state shall offer to2
local first responders, at no cost to the responders, education and3
annual training regarding responding to an equipment failure incident at4
the energy storage resource. The training shall include:5
(a) Information on specific characteristics of energy storage6
resource technology; 7
(b) Information on protecting first responders during an equipment8
failure incident; 9
(c) Information on hazards commonly associated with an equipment10
failure incident; 11
(d) Information on equipment failure incident response protocols,12
including an overview of the site-specific emergency operations plan13
developed under subsection (6) of this section; and14
(e) An onsite review of the perimeter, major equipment, ingress, and15
egress of the energy storage resource. 16
(9) Unless expressly authorized by state law, no entity with17
authority to regulate an energy storage resource, including a18
municipality, shall adopt, enforce, or maintain any safety standard or19
testing requirement for energy storage resources that is different from20
those set forth in sections 70-1001 to 70-1028.02.21
(10) A scrutinized company shall not own or operate an energy22
storage resource in the state. 23
Sec. 4. Section 77-105, Reissue Revised Statutes of Nebraska, is24
amended to read: 25
77-105 The term tangible personal property includes all personal26
property possessing a physical existence, excluding money. The term27
tangible personal property also includes trade fixtures, which means28
machinery and equipment, regardless of the degree of attachment to real29
property, used directly in commercial, manufacturing, or processing30
activities conducted on real property, regardless of whether the real31
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property is owned or leased, and all depreciable tangible personal1
property described in subsection (9) of section 77-202 used in the2
generation of electricity using wind, solar, biomass, or landfill gas as3
the fuel source or in the storage of such electricity in an energy4
storage resource as defined in section 3 of this act or as an energy5
storage resource as defined in section 3 of this act. The term intangible6
personal property includes all other personal property, including money.7
Sec. 5. Section 77-202, Revised Statutes Supplement, 2025, is8
amended to read: 9
77-202 (1) The following property shall be exempt from property10
taxes: 11
(a) Property of the state and its governmental subdivisions to the12
extent used or being developed for use by the state or governmental13
subdivision for a public purpose. For purposes of this subdivision:14
(i) Property of the state and its governmental subdivisions means15
(A) property held in fee title by the state or a governmental subdivision16
or (B) property beneficially owned by the state or a governmental17
subdivision in that it is used for a public purpose and is being acquired18
under a lease-purchase agreement, financing lease, or other instrument19
which provides for transfer of legal title to the property to the state20
or a governmental subdivision upon payment of all amounts due thereunder.21
If the property to be beneficially owned by a governmental subdivision22
has a total acquisition cost that exceeds the threshold amount or will be23
used as the site of a public building with a total estimated construction24
cost that exceeds the threshold amount, then such property shall qualify25
for an exemption under this section only if the question of acquiring26
such property or constructing such public building has been submitted at27
a primary, general, or special election held within the governmental28
subdivision and has been approved by the voters of the governmental29
subdivision. For purposes of this subdivision, threshold amount means the30
greater of fifty thousand dollars or six-tenths of one percent of the31
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total actual value of real and personal property of the governmental1
subdivision that will beneficially own the property as of the end of the2
governmental subdivision's prior fiscal year; and 3
(ii) Public purpose means use of the property (A) to provide public4
services with or without cost to the recipient, including the general5
operation of government, public education, public safety, transportation,6
public works, civil and criminal justice, public health and welfare,7
developments by a public housing authority, parks, culture, recreation,8
community development, and cemetery purposes, or (B) to carry out the9
duties and responsibilities conferred by law with or without10
consideration. Public purpose does not include leasing of property to a11
private party unless the lease of the property is at fair market value12
for a public purpose. Leases of property by a public housing authority to13
low-income individuals as a place of residence are for the authority's14
public purpose; 15
(b) Unleased property of the state or its governmental subdivisions16
which is not being used or developed for use for a public purpose but17
upon which a payment in lieu of taxes is paid for public safety, rescue,18
and emergency services and road or street construction or maintenance19
services to all governmental units providing such services to the20
property. Except as provided in Article VIII, section 11, of the21
Constitution of Nebraska, the payment in lieu of taxes shall be based on22
the proportionate share of the cost of providing public safety, rescue,23
or emergency services and road or street construction or maintenance24
services unless a general policy is adopted by the governing body of the25
governmental subdivision providing such services which provides for a26
different method of determining the amount of the payment in lieu of27
taxes. The governing body may adopt a general policy by ordinance or28
resolution for determining the amount of payment in lieu of taxes by29
majority vote after a hearing on the ordinance or resolution. Such30
ordinance or resolution shall nevertheless result in an equitable31
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contribution for the cost of providing such services to the exempt1
property; 2
(c) Property owned by and used exclusively for agricultural and3
horticultural societies; 4
(d)(i) Property owned by educational, religious, charitable, or5
cemetery organizations, or any organization for the exclusive benefit of6
any such educational, religious, charitable, or cemetery organization,7
and used exclusively for educational, religious, charitable, or cemetery8
purposes, when such property is not (A) owned or used for financial gain9
or profit to either the owner or user, (B) used for the sale of alcoholic10
liquors for more than twenty hours per week, or (C) owned or used by an11
organization which discriminates in membership or employment based on12
race, color, or national origin. 13
(ii) For purposes of subdivision (1)(d) of this section:14
(A) Educational organization means (I) an institution operated15
exclusively for the purpose of offering regular courses with systematic16
instruction in academic, vocational, or technical subjects or assisting17
students through services relating to the origination, processing, or18
guarantying of federally reinsured student loans for higher education,19
(II) a museum or historical society operated exclusively for the benefit20
and education of the public, or (III) a nonprofit organization that owns21
or operates a child care facility; and 22
(B) Charitable organization includes (I) an organization operated23
exclusively for the purpose of the mental, social, or physical benefit of24
the public or an indefinite number of persons and (II) a fraternal25
benefit society organized and licensed under sections 44-1072 to26
44-10,109. 27
(iii) The property tax exemption authorized in subdivision (1)(d)(i)28
of this section shall apply to any for-profit skilled nursing facility,29
for-profit nursing facility, or for-profit assisted-living facility that30
provides housing for medicaid beneficiaries, except that the exemption31
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amount for such property shall be a percentage of the property taxes that1
would otherwise be due. Such percentage shall be equal to the average2
percentage of occupied beds in the facility provided to medicaid3
beneficiaries over the most recent three-year period. This subdivision4
shall not be construed to modify, limit, or reduce any property tax5
exemption provided to a nonprofit skilled nursing facility, nonprofit6
nursing facility, or nonprofit assisted-living facility pursuant to7
subdivision (1)(d)(i) of this section. For purposes of this subdivision,8
skilled nursing facility has the same meaning as in section 71-429,9
nursing facility has the same meaning as in section 71-424, and assisted-10
living facility has the same meaning as in section 71-5903.11
(iv) The property tax exemption authorized in subdivision (1)(d)(i)12
of this section shall apply to a building that (A) is owned by a13
charitable organization, (B) is made available to students in attendance14
at an educational institution, and (C) is recognized by such educational15
institution as approved student housing, except that the exemption shall16
only apply to the commons area of such building, including any common17
rooms and cooking and eating facilities; 18
(e) Household goods and personal effects not owned or used for19
financial gain or profit to either the owner or user; and20
(f) A portion of the property owned by a taxpayer as provided in the21
Recreational Trail Easement Property Tax Exemption Act.22
(2) The increased value of land by reason of shade and ornamental23
trees planted along the highway shall not be taken into account in the24
valuation of land. 25
(3) Tangible personal property which is not depreciable tangible26
personal property as defined in section 77-119 shall be exempt from27
property tax. 28
(4) Motor vehicles, trailers, and semitrailers required to be29
registered for operation on the highways of this state shall be exempt30
from payment of property taxes. 31
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(5) Business and agricultural inventory shall be exempt from the1
personal property tax. For purposes of this subsection, business2
inventory includes personal property owned for purposes of leasing or3
renting such property to others for financial gain only if the personal4
property is of a type which in the ordinary course of business is leased5
or rented thirty days or less and may be returned at the option of the6
lessee or renter at any time and the personal property is of a type which7
would be considered household goods or personal effects if owned by an8
individual. All other personal property owned for purposes of leasing or9
renting such property to others for financial gain shall not be10
considered business inventory. 11
(6) Any personal property exempt pursuant to subsection (2) of12
section 77-4105 or section 77-5209.02 shall be exempt from the personal13
property tax. 14
(7) Livestock shall be exempt from the personal property tax.15
(8) Any personal property exempt pursuant to the Nebraska Advantage16
Act or the ImagiNE Nebraska Act shall be exempt from the personal17
property tax. 18
(9) Any depreciable tangible personal property used directly in the19
generation of electricity using wind as the fuel source or in the storage20
of such electricity in an energy storage resource as defined in section 321
of this act shall be exempt from the property tax levied on depreciable22
tangible personal property. Any depreciable tangible personal property23
used directly in the generation of electricity using solar, biomass, or24
landfill gas as the fuel source or in the storage of such electricity in25
an energy storage resource as defined in section 3 of this act shall be26
exempt from the property tax levied on depreciable tangible personal27
property if such depreciable tangible personal property was installed on28
or after January 1, 2016, and has a nameplate capacity of one hundred29
kilowatts or more. For tax years beginning on or after January 1, 2027,30
any depreciable tangible personal property used as an energy storage31
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resource as defined in section 3 of this act shall be exempt from the1
property tax levied on depreciable tangible personal property if such2
depreciable tangible personal property has a nameplate capacity of one3
hundred kilowatts or more. Depreciable tangible personal property used4
directly in the generation or storage of electricity using wind, solar,5
biomass, or landfill gas as the fuel source includes, but is not limited6
to, wind turbines, rotors and blades, towers, solar panels, trackers,7
generating equipment, transmission components, substations, supporting8
structures or racks, inverters, and other system components such as9
wiring, control systems, switchgears, and generator step-up transformers,10
battery modules, battery racks, power conversion systems, battery11
enclosures, battery cells, and battery management systems.12
(10) Any tangible personal property that is acquired by a person13
operating a data center located in this state, that is assembled,14
engineered, processed, fabricated, manufactured into, attached to, or15
incorporated into other tangible personal property, both in component16
form or that of an assembled product, for the purpose of subsequent use17
at a physical location outside this state by the person operating a data18
center shall be exempt from the personal property tax. Such exemption19
extends to keeping, retaining, or exercising any right or power over20
tangible personal property in this state for the purpose of subsequently21
transporting it outside this state for use thereafter outside this state.22
For purposes of this subsection, data center means computers, supporting23
equipment, and other organized assembly of hardware or software that are24
designed to centralize the storage, management, or dissemination of data25
and information, environmentally controlled structures or facilities or26
interrelated structures or facilities that provide the infrastructure for27
housing the equipment, such as raised flooring, electricity supply,28
communication and data lines, Internet access, cooling, security, and29
fire suppression, and any building housing the foregoing.30
(11) For tax years prior to tax year 2020, each person who owns31
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property required to be reported to the county assessor under section1
77-1201 shall be allowed an exemption amount as provided in the Personal2
Property Tax Relief Act. For tax years prior to tax year 2020, each3
person who owns property required to be valued by the state as provided4
in section 77-601, 77-682, 77-801, or 77-1248 shall be allowed a5
compensating exemption factor as provided in the Personal Property Tax6
Relief Act. 7
(12)(a) Broadband equipment shall be exempt from the personal8
property tax if such broadband equipment is: 9
(i) Deployed in an area funded in whole or in part by funds from the10
Broadband Equity, Access, and Deployment Program, authorized by the11
federal Infrastructure Investment and Jobs Act, Public Law 117-58; or12
(ii) Deployed in a qualified census tract located within the13
corporate limits of a city of the metropolitan class and being utilized14
to provide end-users with access to the Internet at speeds of at least15
one hundred megabits per second for downloading and at least one hundred16
megabits per second for uploading. 17
(b) An owner of broadband equipment seeking an exemption under this18
section shall apply for an exemption to the county assessor on or before19
December 31 of the year preceding the year for which the exemption is to20
begin. If the broadband equipment meets the criteria described in this21
subsection, the county assessor shall approve the application within22
thirty calendar days after receiving the application. The application23
shall be on forms prescribed by the Tax Commissioner.24
(c) For purposes of this subsection: 25
(i) Broadband communications service means telecommunications26
service as defined in section 86-121, video programming as defined in 4727
U.S.C. 522, as such section existed on January 1, 2024, or Internet28
access as defined in section 1104 of the federal Internet Tax Freedom29
Act, Public Law 105-277; 30
(ii) Broadband equipment means machinery or equipment used to31
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provide broadband communications service and includes, but is not limited1
to, wires, cables, fiber, conduits, antennas, poles, switches, routers,2
amplifiers, rectifiers, repeaters, receivers, multiplexers, duplexers,3
transmitters, circuit cards, insulating and protective materials and4
cases, power equipment, backup power equipment, diagnostic equipment,5
storage devices, modems, and other general central office or headend6
equipment, such as channel cards, frames, and cabinets, or equipment used7
in successor technologies, including items used to monitor, test,8
maintain, enable, or facilitate qualifying equipment, machinery,9
software, ancillary components, appurtenances, accessories, or other10
infrastructure that is used in whole or in part to provide broadband11
communications service. Machinery or equipment used to produce broadband12
communications service does not include personal consumer electronics,13
including, but not limited to, smartphones, computers, and tablets; and14
(iii) Qualified census tract means a qualified census tract as15
defined in 26 U.S.C. 42(d)(5)(B)(ii)(I), as such section existed on16
January 1, 2024. 17
Sec. 6. Section 77-6201, Reissue Revised Statutes of Nebraska, is18
amended to read: 19
77-6201 The Legislature finds and declares: 20
(1) The purpose of the nameplate capacity tax levied under section21
77-6203 is to replace property taxes currently imposed on renewable22
energy and energy storage infrastructure and depreciated over a short23
period of time in a way that causes local budgeting challenges and24
increases upfront costs for renewable energy developers;25
(2) The nameplate capacity tax should be competitive with taxes26
imposed directly and indirectly on renewable energy generation , storage,27
and development in other states; 28
(3) The nameplate capacity tax should be fair and nondiscriminatory29
when compared with other taxes imposed on other industries in the state;30
and 31
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(4) The nameplate capacity tax should not be singled out as a source1
of General Fund revenue during times of economic hardship.2
Sec. 7. Section 77-6202, Revised Statutes Cumulative Supplement,3
2024, is amended to read: 4
77-6202 For purposes of sections 77-6201 to 77-6204:5
(1) Commissioned means the renewable energy generation facility or6
energy storage resource has been in commercial operation for at least7
twenty-four hours. A renewable energy generation facility or energy8
storage resource is not in commercial operation unless the renewable9
energy generation facility or energy storage resource is connected and10
transmitting energy to the electrical grid , to an associated renewable11
energy generation facility, or to the end user if the renewable energy12
generation facility is a customer-generator as defined in section13
70-2002; 14
(2) Energy storage resource has the same meaning as in section 3 of15
this act; 16
(3) (2) Nameplate capacity means the capacity of (a) a renewable17
energy generation facility to generate electricity as measured in18
megawatts, including fractions of a megawatt , or (b) an energy storage19
resource to store electricity as measured in megawatts, including20
fractions of a megawatt. Nameplate capacity shall be determined based on21
the facility's alternating current capacity of the facility or resource ;22
and 23
(4) (3) Renewable energy generation facility means (a) a facility24
that generates electricity using wind as the fuel source or (b) a25
facility that generates electricity using solar, biomass, or landfill gas26
as the fuel source if such facility was installed on or after January 1,27
2016, and has a nameplate capacity of one hundred kilowatts or more.28
Sec. 8. Section 77-6203, Revised Statutes Cumulative Supplement,29
2024, is amended to read: 30
77-6203 (1)(a) (1) The owner of a renewable energy generation31
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facility annually shall pay a nameplate capacity tax equal to the total1
nameplate capacity of the commissioned renewable energy generation2
facility multiplied by a tax rate of three thousand five hundred eighteen3
dollars per megawatt. 4
(b) The owner of an energy storage resource annually shall pay a5
nameplate capacity tax equal to the total nameplate capacity of the6
commissioned energy storage resource multiplied by a tax rate of two7
thousand nine hundred fifty-two dollars per megawatt.8
(2) No tax shall be imposed on a renewable energy generation9
facility or energy storage resource: 10
(a) Owned or operated by the federal government, the State of11
Nebraska, a public power district, a public power and irrigation12
district, an individual municipality, a registered group of13
municipalities, an electric membership association, or a cooperative; or14
(b) That is a customer-generator as defined in section 70-2002.15
(3) No tax levied pursuant to this section shall be construed to16
constitute restricted funds as defined in section 13-518 for the first17
five years after the renewable energy generation facility or energy18
storage resource is commissioned. 19
(4) Not withstanding any other law to the contrary, the The presence20
of one or more renewable energy generation facilities , energy storage21
resources, or supporting infrastructure shall not be a factor in the22
assessment, determination of actual value, or classification under23
section 77-201 of the real property underlying or adjacent to such24
facilities, resources, or infrastructure. 25
(5)(a)(i) On or before March 1 of each year, the owner of a26
renewable energy generation facility or energy storage resource subject27
to the nameplate capacity tax shall file a report with the county28
treasurer of each county in which the facility or resource is located and29
provide a copy of such report to the Department of Revenue.30
(ii) The report shall state the nameplate capacity of the facility31
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or resource for the prior calendar year from January 1 through December1
31 and shall be on a form prescribed by the Department of Revenue.2
(b) Upon receipt of the report filed pursuant to subdivision (5)(a)3
of this section, the county treasurer shall calculate the amount of the4
nameplate capacity tax based on the reported nameplate capacity and the5
tax rate provided in subsection (1) of this section. The county treasurer6
shall, prior to April 1 of each year, notify the owner of the amount of7
tax due and the date such tax is due. 8
(c) The Department of Revenue shall review all reports filed9
pursuant to subdivision (5)(a) of this section for accuracy, consistency,10
and compliance with this section. The Department of Revenue may audit11
facilities as necessary to verify reported nameplate capacity. (5)(a) The12
Department of Revenue shall collect the tax due under this section.13
(d) (b) The tax shall be imposed beginning the first calendar year14
the renewable energy generation facility or energy storage resource is15
commissioned. A renewable energy generation facility that uses wind as16
the fuel source which was commissioned prior to July 15, 2010, shall be17
subject to the tax levied pursuant to sections 77-6201 to 77-6204 on and18
after January 1, 2010. The amount of property tax on depreciable tangible19
personal property previously paid on a renewable energy generation20
facility that uses wind as the fuel source which was commissioned prior21
to July 15, 2010, which is greater than the amount that would have been22
paid pursuant to sections 77-6201 to 77-6204 from the date of23
commissioning until January 1, 2010, shall be credited against any tax24
due under Chapter 77, and any amount so credited that is unused in any25
tax year shall be carried over to subsequent tax years until fully26
utilized. Beginning January 1, 2027, energy storage resources shall be27
subject to the tax levied pursuant to sections 77-6201 to 77-6204. The28
amount of property tax on depreciable tangible personal property that an29
energy storage resource incurred before January 1, 2027, shall be30
credited against any tax the resource incurs under Chapter 77 on or after31
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January 1, 2027, and any amount so credited that is unused in any tax1
year shall be carried over to subsequent tax years until fully utilized.2
(e)(i) (c)(i) The tax for the first calendar year shall be prorated3
based upon the number of days remaining in the calendar year after the4
renewable energy generation facility or energy storage resource is5
commissioned. 6
(ii) In the first year in which a renewable energy generation7
facility or energy storage resource is taxed or in any year in which8
additional commissioned nameplate capacity is added to a renewable energy9
generation facility or energy storage resource, the taxes on the initial10
or additional nameplate capacity shall be prorated for the number of days11
remaining in the calendar year. 12
(iii) When a renewable energy generation facility or energy storage13
resource is decommissioned or made nonoperational by a change in law14
during a tax year, the taxes shall be prorated for the number of days15
during which the renewable energy generation facility or energy storage16
resource was not decommissioned or was operational.17
(iv) When the capacity of a renewable energy generation facility or18
energy storage resource to produce or store electricity is reduced but19
the renewable energy generation facility or energy storage resource is20
not decommissioned, the nameplate capacity of the renewable energy21
generation facility or energy storage resource is deemed to be unchanged.22
(6)(a) On March 1 of each year, the owner of a renewable energy23
generation facility shall file with the Department of Revenue a report on24
the nameplate capacity of the facility for the previous year from January25
1 through December 31. All taxes imposed pursuant to sections 77-6201 to26
77-6204 shall be due on April 1 and shall be delinquent if not paid to27
the county treasurer of each county in which the renewable energy28
generation facility or energy storage resource is located. on a quarterly29
basis on April 1 and each quarter thereafter. Delinquent quarterly30
payments shall draw interest at the rate provided for in section31
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45-104.02, as such rate may from time to time be adjusted.1
(b) The owner of a renewable energy generation facility or energy2
storage resource is liable for the taxes under this section with respect3
to the facility or resource, whether or not the owner of the facility or4
resource is the owner of the land on which the facility or resource is5
situated. 6
(7) Failure to file a report required by subsection (6) of this7
section, filing such report late, failure to pay taxes due, or8
underpayment of such taxes shall result in a penalty of five percent of9
the amount due being imposed for each quarter the report is overdue or10
the payment is delinquent, except that the penalty shall not exceed ten11
thousand dollars. 12
(8) The Department of Revenue shall enforce the provisions of this13
section. The department may adopt and promulgate rules and regulations14
to: 15
(a) Prescribe the form and content of reports required under16
subsection (5) of this section; 17
(b) Establish audit procedures and standards for verifying nameplate18
capacity reported under subsection (5) of this section;19
(c) Ensure consistent calculation and collection of the nameplate20
capacity tax across all counties; and 21
(d) Establish procedures for assessing penalties authorized under22
subsection (7) of this section for failure to file required reports, late23
filing, failure to pay taxes due, or underpayment of taxes. necessary for24
the implementation and enforcement of this section.25
(9) The county treasurer shall distribute all revenue received26
pursuant to this section as provided in section 77-6204 within thirty27
days after receipt of such revenue. The Department of Revenue shall28
separately identify the proceeds from the tax imposed by this section and29
shall pay all such proceeds over to the county treasurer of the county30
where the renewable energy generation facility is located within thirty31
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days after receipt of such proceeds. 1
(10) Each county treasurer shall report annually to the Department2
of Revenue the total amount of nameplate capacity tax collected under3
this section for audit and verification purposes. 4
Sec. 9. Section 77-6204, Revised Statutes Supplement, 2025, is5
amended to read: 6
77-6204 (1)(a) (1) The county treasurer shall distribute all revenue7
received from taxes levied prior to January 1, 2027, the Department of8
Revenue pursuant to section 77-6203 as follows: 9
(i) (a) Five percent of such revenue shall be distributed to the10
community college area in which the renewable energy generation facility11
is located; and 12
(ii) (b) The remainder of such revenue shall be distributed to local13
taxing entities which, but for such personal property tax exemption,14
would have received distribution of personal property tax revenue from15
depreciable personal property used directly in the generation of16
electricity using wind, solar, biomass, or landfill gas as the fuel17
source. 18
(b) The county treasurer shall distribute all revenue from taxes19
levied on or after January 1, 2027, pursuant to section 77-6203 as20
follows: 21
(i) Ninety-five percent of such revenue shall be distributed to the22
counties in proportion to the amount of tax paid by renewable energy23
generation facilities or energy storage resources physically located in24
each county. If the facility or resource is located entirely within one25
county, all such revenue from the tax paid by such facility or resource26
shall be distributed to that county. If the facility or resource is27
located in more than one county, the revenue from the tax paid by such28
facility or resource shall be apportioned among such counties in29
proportion to the amount of nameplate capacity of the facility or30
resource that is physically located within each county's boundaries;31
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(ii) Five percent of such revenue shall be distributed to the1
community college areas, as defined in section 85-1503, in proportion to2
the amount of tax paid by renewable energy generation facilities or3
energy storage resources physically located in each community college4
area. If the facility or resource is located entirely within one5
community college area, all such revenue from the tax paid by such6
facility or resource shall be distributed to that community college area.7
If the facility or resource is located in more than one community college8
area, the revenue from the tax paid by such facility or resource shall be9
apportioned among such community college areas in proportion to the10
amount of nameplate capacity of the facility or resource that is11
physically located within each community college area's boundaries.12
(2) A local taxing entity's status as eligible for distribution13
under subdivision (1)(a)(ii) (1)(b) of this section shall not be affected14
when and if the net book value of personal property used directly in the15
generation of electricity using wind, solar, biomass, or landfill gas as16
the fuel source becomes zero. A local taxing entity's status as eligible17
for distribution under such subdivision shall be affected by the disposal18
of all of the exempt depreciable personal property used directly in the19
generation of electricity using wind, solar, biomass, or landfill gas as20
the fuel source. 21
(3) The distribution to each eligible local taxing entity under22
subdivision (1)(a)(ii) (1)(b) of this section shall be calculated by23
determining the amount of taxes that the eligible local taxing entity24
levied during the taxable year and dividing this amount by the total tax25
levied by all of the eligible local taxing entities during the year. Each26
eligible entity's resulting fraction shall then be multiplied by the27
amount of revenue available for distribution pursuant to subdivision (1)28
(a)(ii) (1)(b) of this section to determine the portion of such revenue29
due each local taxing entity. 30
(4) The Department of Revenue shall not retain any revenue collected31
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pursuant to sections 77-6201 to 77-6204 for distribution, use, transfer,1
pledge, or allocation to or from the General Fund. 2
(5) Each county treasurer shall report annually to the Department of3
Revenue the distribution of revenue under this section for audit and4
verification purposes. 5
(6) For purposes of this section, the physical location of nameplate6
capacity of a renewable energy generation facility or energy storage7
resource shall be determined as follows: 8
(a) For wind energy generation facilities, by the location of each9
wind turbine structure; 10
(b) For solar energy generation facilities, by the location of each11
solar panel array; and 12
(c) For energy storage resources, by the location of each energy13
storage container. 14
Sec. 10. This act becomes operative on January 1, 2027.15
Sec. 11. Original sections 77-105 and 77-6201, Reissue Revised16
Statutes of Nebraska, sections 77-6202 and 77-6203, Revised Statutes17
Cumulative Supplement, 2024, and sections 13-518, 70-1001.01, 77-202, and18
77-6204, Revised Statutes Supplement, 2025, are repealed.19
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