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LEGISLATURE OF NEBRASKA
ONE HUNDRED NINTH LEGISLATURE
SECOND SESSION
LEGISLATIVE BILL 1204
Introduced by Clouse, 37; Quick, 35.
Read first time January 21, 2026
Committee: Natural Resources
A BILL FOR AN ACT relating to electricity; to amend sections 77-105 and1
77-6201, Reissue Revised Statutes of Nebraska, sections 77-1359,2
77-6202, and 77-6203, Revised Statutes Cumulative Supplement, 2024,3
and sections 13-518, 77-202, and 77-6204, Revised Statutes4
Supplement, 2025; to adopt the Nameplate Capacity Tax Facility5
Standards Act; to define and redefine terms; to change provisions6
relating to property tax exemptions and the nameplate capacity tax;7
to harmonize provisions; to provide an operative date; to provide8
severability; and to repeal the original sections.9
Be it enacted by the people of the State of Nebraska,10
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Section 1. Sections 1 to 25 of this act shall be known and may be1
cited as the Nameplate Capacity Tax Facility Standards Act.2
Sec. 2. For purposes of the Nameplate Capacity Tax Facility3
Standards Act: 4
(1) Affected landowner means: 5
(a) Any landowner whose property is subject to facilities, access6
roads, or associated infrastructure of the renewable energy facility or7
energy storage resource; or 8
(b) Any landowner whose property is directly impacted by drainage9
tile damage, soil compaction, weed spread, or other agricultural impacts10
from the construction or operation of the facility or resource;11
(2) Energy storage resource means any energy storage resource12
subject to the nameplate capacity tax imposed under section 77-6203;13
(3) Nonparticipating landowner means a landowner who is not a party14
to a lease, easement, or other agreement with the owner of the renewable15
energy generation facility or energy storage resource for placement of16
such facility or resource on the landowner's property;17
(4) Occupied dwelling unit means a residence that is inhabited on a18
regular basis as a primary or secondary residence;19
(5) Permitted has the same meaning as in section 77-6202;20
(6) Political subdivision means any county or other political21
subdivision of the state, including municipalities that exercise zoning22
authority beyond their corporate limits; 23
(7) Public road or right-of-way means a road, street, or highway24
maintained by a public entity and open to public vehicular traffic;25
(8) Renewable energy generation facility means any renewable energy26
generation facility subject to the nameplate capacity tax imposed under27
section 77-6203; and 28
(9) Total height means the height of a wind turbine of the wind29
energy generation facility measured from ground level to the tip of the30
blade at its highest point. 31
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Sec. 3. The Legislature finds and declares that:1
(1) Renewable energy and energy storage development is a matter of2
statewide concern affecting Nebraska's economic development, energy3
security, agricultural economy, property tax base, and environmental4
stewardship; 5
(2) Inconsistent and overly restrictive local regulations have6
created substantial barriers to renewable energy and energy storage7
development in Nebraska, making the state less competitive compared to8
neighboring states with more uniform regulatory frameworks;9
(3) Renewable energy facilities and energy storage resources10
contribute substantial revenue to Nebraska counties and other political11
subdivisions through nameplate capacity taxes, provide lease payments to12
agricultural landowners, and support rural economic development;13
(4) Uniform statewide maximum standards are necessary to:14
(a) Ensure fair and predictable regulatory treatment of renewable15
energy and energy storage development across all Nebraska counties and16
political subdivisions; 17
(b) Prevent individual counties and other political subdivisions18
from imposing overly restrictive requirements that would effectively19
prohibit renewable energy and energy storage development and deny20
landowners the opportunity to benefit economically from their property;21
(c) Balance the legitimate interests of renewable energy and energy22
storage developers, participating landowners, nonparticipating23
landowners, local governments, and the residents of Nebraska;24
(d) Promote Nebraska's economic development and energy independence25
while protecting property rights, agricultural operations, and public26
health and safety; 27
(e) Maintain Nebraska's competitiveness in attracting renewable28
energy and energy storage investment compared to other states; and29
(f) Ensure that counties and other political subdivisions benefit30
from substantial nameplate capacity tax revenue while renewable energy31
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and energy storage projects are subject to reasonable and predictable1
standards; 2
(5) The establishment of maximum standards in the Nameplate Capacity3
Tax Facility Standards Act does not prevent counties and other political4
subdivisions from adopting less restrictive requirements or from5
approving renewable energy facilities and energy storage resources6
without imposing permitting requirements beyond those necessary to7
protect public health and safety; 8
(6) The standards established in the Nameplate Capacity Tax Facility9
Standards Act are based on sound engineering principles, scientific10
evidence, and best practices from other states, and are designed to11
protect nonparticipating landowners and the public while enabling12
responsible renewable energy and energy storage development; and13
(7) The nameplate capacity tax provides substantial and predictable14
revenue to counties and other political subdivisions that helps justify15
state establishment of maximum permitting and regulation standards and16
ensures that renewable energy facilities and energy storage resources17
contribute fairly to local services and infrastructure.18
Sec. 4. (1) Political subdivisions shall not impose permitting,19
zoning, and building requirements more restrictive than the standards20
described in sections 5 to 16 of this act for renewable energy generation21
facilities or energy storage resources. 22
(2) Political subdivisions may impose permitting, zoning, and23
requirements less restrictive than the standards described in sections 524
to 16 of this act. 25
(3) Political subdivisions shall not impose cumulative or stacking26
requirements on renewable energy generation facilities or energy storage27
resources that, when combined, create standards more restrictive than the28
standards described in sections 5 to 16 of this act.29
(4) Political subdivisions shall not use terms such as special use30
permit, conditional use permit, or variance to impose requirements on31
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renewable energy generation facilities or energy storage resources more1
restrictive than the standards described in sections 5 to 16 of this act.2
(5) Political subdivisions shall apply the standards described in3
sections 5 to 16 of this act uniformly to all renewable energy generation4
facilities and energy storage resources of the same type, regardless of5
ownership, size, or other characteristics, except as specifically6
provided in the Nameplate Capacity Tax Facility Standards Act.7
(6) Requirements and standards imposed by federal law or federal8
agencies, including the Federal Aviation Administration, shall supersede9
the Nameplate Capacity Tax Facility Standards Act to the extent of any10
conflict between the act and such requirements and standards.11
Sec. 5. (1) A renewable energy generation facility or energy12
storage resource shall meet the following setback requirements:13
(a) For wind energy generation facilities, the setback requirements14
shall be: 15
(i) From the outside wall of participating and nonparticipating16
landowners' occupied dwelling units, one and one-tenth the total height17
of the renewable energy generation facility; 18
(ii) From nonparticipating landowners' property lines, one and one-19
tenth times the total height of the renewable energy generation facility;20
(iii) From the center of public roads or rights-of-way, one and one-21
tenth times the total height of the renewable energy generation facility;22
(iv) From occupied community buildings, one and one-tenth times the23
total height of the renewable energy generation facility; and24
(v) From overhead communication lines not related to the renewable25
energy generation facility, one and one-tenth times the total height of26
the renewable energy generation facility; 27
(b) For solar energy generation facilities, the setback requirements28
shall be: 29
(i) From the outside wall of participating and nonparticipating30
landowners' occupied dwelling units, two hundred feet;31
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(ii) From nonparticipating landowners' property lines, twenty-five1
feet; 2
(iii) From the center of public roads or rights-of-way, seventy3
feet; 4
(iv) From occupied community buildings, two hundred feet; and5
(v) From overhead communication lines not related to the renewable6
energy generation facility, twenty-five feet; 7
(c) For energy storage resources, the setback requirements shall be:8
(i) From the outside wall of participating and nonparticipating9
landowners' occupied dwelling units, fifty feet; 10
(ii) From nonparticipating landowners' property lines, twenty-five11
feet; 12
(iii) From the center of public roads or rights-of-way, twenty-five13
feet; 14
(iv) From occupied community buildings, fifty feet; and15
(v) From overhead communication lines not related to the energy16
storage resource, twenty-five feet. 17
(2) Setback requirements shall be measured from the base of the18
nearest wind turbine, solar panel, or energy storage container. Political19
subdivisions shall recognize a waiver of setback requirements to the20
extent an affected landowner has executed a written waiver of such21
requirements. 22
Sec. 6. (1) Political subdivisions shall not impose a height limit23
on wind turbines, solar panels, and energy storage containers and24
transportation and distribution infrastructure of any renewable energy25
generation facility or energy storage resource associated with such26
turbines, panels, or containers lower than the limitations imposed in27
this section. Federal Aviation Administration regulations shall supersede28
any height limitations imposed in this section. 29
(2) For solar energy generation facilities, the height limitation30
shall be at least twenty feet for any solar panel or related equipment.31
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Sec. 7. (1) The county or counties where a renewable energy1
generation facility or energy storage resource is located shall require2
the owner of the facility or resource to provide an estimate and3
financial assurance for the decommissioning of the facility or resource.4
(2) The county or counties where a renewable energy generation5
facility or energy storage resource is located may require the owner of6
the renewable energy generation facility or energy storage resource to7
update the decommissioning estimate and financial assurance described in8
subsection (1) of this section every five years or at longer intervals9
while the facility or resource is in operation. 10
(3) The county or counties where a renewable energy generation11
facility or energy storage resource is located shall not require the12
owner of a renewable energy generation facility or energy storage13
resource to provide the financial assurance described in subsection (1)14
of this section prior to the fifteenth year of operation for the facility15
or resource. 16
(4) Acceptable forms of financial assurance are surety bonds,17
letters of credit, and parent company guarantees from companies with18
investment-grade credit ratings. Escrow accounts and similar cash19
requirements are not acceptable forms of financial security for purposes20
of this section. 21
(5) Decommissioning shall be completed within eighteen months after22
cessation of commercial operations of a renewable energy generation23
facility or energy storage resource. The owner of the facility or24
resource shall provide written notice of such cessation to the county or25
counties where the facility or resource is located within ninety days26
after the cessation. 27
(6) Decommissioning shall include removal of all aboveground28
structures, removal of foundations to a depth of thirty-six inches, and29
restoration of the site to a condition suitable for the land's prior use.30
(7) Upon decommissioning, the owner of the renewable energy31
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generation facility or energy storage resource shall restore the site to1
a condition suitable for agricultural production, including removal of2
gravel, restoration of topsoil, and establishment of ground cover to3
prevent erosion. 4
Sec. 8. (1) Political subdivisions shall not restrict sound from5
wind energy generation systems to quieter than fifty A-weighted decibels,6
measured as a ten-minute equivalent continuous sound level at the7
property line of any nonparticipating property. 8
(2) Political subdivisions shall recognize a waiver of noise9
restrictions to the extent an affected property owner has executed a10
written waiver of such restrictions. 11
(3) Noise measurements shall be conducted in accordance with12
standards established by the American National Standards Institute or13
other nationally recognized standards. Noise modeling shall be the14
accepted means of compliance with this subsection and any ordinance,15
regulation, or resolution a political subdivision may adopt. Political16
subdivisions shall not require noise measurements except for17
postconstruction compliance purposes. 18
Sec. 9. (1) Political subdivisions shall not regulate the19
visibility or visual impact of renewable energy generation facilities or20
energy storage resources, except that political subdivisions may require21
screening of solar energy generation facilities from view of adjacent22
homes, churches, schools, and parks by fencing, landscaping, or other23
means, as long as such screening is economically practicable and does not24
significantly reduce the energy production or storage of the facility or25
resource. 26
(2) Political subdivisions shall not impose color requirements on27
wind turbines except to require colors consistent with Federal Aviation28
Administration regulations. 29
(3) Political subdivisions may prohibit outdoor advertising or30
signage on renewable energy facilities except for reasonable31
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identification, warning, or safety signage required by law or industry1
standards. 2
Sec. 10. (1) Political subdivisions may restrict shadow flicker3
from wind energy generation facilities to no more than thirty hours per4
year at the outside wall of any nonparticipating occupied dwelling unit,5
as predicted by modeling software. 6
(2) If actual shadow flicker exceeds thirty hours per year at the7
outside wall of any nonparticipating occupied dwelling unit, the owner of8
the facility shall implement mitigation measures, which may include9
curtailment of specific turbines during times of shadow flicker10
occurrence. 11
Sec. 11. All renewable energy generation facilities and energy12
storage resources shall comply with the requirements of section 66-915.13
Political subdivisions shall not require lighting of renewable energy14
facilities or energy storage resources more restrictive than those in15
section 66-915, as required by Federal Aviation Administration16
regulations, or as necessary for safety purposes in accordance with the17
National Electrical Code. 18
Sec. 12. (1)(a) Before commencing construction, the owner of a19
renewable energy generation facility or energy storage resource shall20
conduct a video survey of the condition of county roads and bridges21
anticipated to be used for facility or resource construction and22
operation. 23
(b) The owner of the facility or resource shall be responsible for24
damage to county roads and bridges caused by construction or operation of25
the facility or resource, as documented by comparison to the26
preconstruction video survey described in subdivision (1)(a) of this27
section. 28
(c) An owner of a facility or resource and a county may enter into a29
road-use agreement specifying maintenance responsibilities, repair30
standards, and financial arrangements. Any such agreement shall be31
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completed before commencement of construction of the facility or1
resource. 2
(2)(a) If construction or operation of the renewable energy3
generation facility or energy storage resource damages subsurface4
drainage tile or surface drainage systems, the owner of the facility or5
resource shall repair or replace such systems within thirty days after6
notification of such damage or before the next planting season, whichever7
comes first. 8
(b) The owner of the facility or resource shall engage qualified9
professionals to locate and map subsurface drainage tile in the area of10
the proposed renewable energy generation facility or energy storage11
resource before construction and shall provide such mapping to affected12
landowners. 13
(3)(a) The owner of a renewable energy generation facility or energy14
storage resource shall segregate and stockpile topsoil separately from15
subsoil during construction. 16
(b) Upon completion of construction, the owner of the facility or17
resource shall restore topsoil to its original depth and condition and18
restore soil compaction to levels suitable for agricultural production19
within one growing season. 20
(4)(a) The owner of a renewable energy generation facility or energy21
storage resource shall compensate landowners for crop damage or loss22
resulting from construction or operation of the facility or resource at23
rates based on county average crop prices as determined by the United24
States Department of Agriculture National Agricultural Statistics25
Service. 26
(b) Compensation shall include any loss of production during27
construction and any reduction in yields resulting from soil compaction,28
drainage issues, or other facility or resource impacts during the29
following growing seasons until full productivity is restored.30
(5) The owner of a renewable energy generation facility or energy31
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storage resource shall repair or replace fences, irrigation systems,1
terraces, and other agricultural infrastructure damage during2
construction of the facility or resource to their preconstruction3
condition or shall compensate the landowner for such damage.4
Sec. 13. The owner of a renewable energy generation facility or5
energy storage resource shall control noxious weeds on the property of6
the facility or resource in accordance with sections 2-952 to 2-955.017
and shall not allow weeds to spread to adjacent agricultural land.8
Sec. 14. (1) The owner of a renewable energy generation facility or9
energy storage resource shall prepare and provide to local emergency10
responders an emergency response plan that includes facility layout,11
electrical hazards, access points, emergency contacts, and shutdown12
procedures. 13
(2) The owner of the facility or resource shall also provide annual14
safety training to local emergency responders at no cost to the county or15
emergency services. 16
Sec. 15. Political subdivisions may require a bond or other17
financial security other than an escrow account or cash deposit in an18
amount not to exceed one hundred twenty-five percent of the reasonable19
estimated amount necessary to ensure completion of any required road20
repairs related to the construction of a renewable energy generation21
facility or energy storage resource. The political subdivision shall22
release any such financial security upon completion of construction and23
satisfactory repair of any road damage. 24
Sec. 16. Political subdivisions may require the owner of a25
renewable energy generation facility or energy storage resource to26
maintain general liability insurance in commercially reasonable amounts27
and to name the political subdivision as an additional insured on such28
policies. 29
Sec. 17. (1) Before commencing the construction of any renewable30
energy generation facility or energy storage resource, the owner of the31
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facility or resource shall obtain a permit under the Nameplate Capacity1
Tax Facility Standards Act. To obtain such permit, the owner shall file2
an application with the county board of each county such facility or3
resource is located in. 4
(2) A complete application for a permit under the Nameplate Capacity5
Tax Facility Standards Act shall include, at a minimum:6
(a) Site plans showing the proposed location of all renewable energy7
generation facilities or energy storage resources and associated8
infrastructure; 9
(b) Engineering studies or manufacturer specifications demonstrating10
compliance with setback, height, and noise standards established in the11
Nameplate Capacity Tax Facility Standards Act; 12
(c) The decommissioning estimate described in subsection (1) of13
section 7 of this act; 14
(d) Documentation of notice to affected landowners and public15
officials as required by resolution; and 16
(e) Payment of applicable filing fees established by resolution.17
(3) A county board may require additional information for the18
application in addition to the requirements described in subsection (2)19
of this section only if such information is reasonably necessary to20
evaluate compliance with the specific standards established in the21
Nameplate Capacity Tax Facility Standards Act and is specified in a22
resolution adopted before the application is filed.23
Sec. 18. (1) For any renewable energy generation facility or energy24
storage resource with a nameplate capacity of less than twenty-five25
megawatts, county boards shall approve or deny any application filed26
pursuant to section 17 of this act for such facility or resource within27
forty-five days after receiving a complete application. Failure of a28
county board to act on the application within forty-five days after such29
receipt shall constitute automatic approval of the application.30
(2) For any renewable energy generation facility or energy storage31
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resource with a nameplate capacity of twenty-five megawatts or greater,1
county boards shall approve or deny any application filed pursuant to2
section 17 of this act for such facility or resource within ninety days3
after receiving a complete application. Failure of a county board to act4
on the application within ninety days after such receipt shall constitute5
automatic approval of the application. 6
(3) A permit applicant and a county board may agree in writing to7
extend the timelines described in subsections (1) and (2) of this8
section. 9
(4) The timelines described in subsections (1) and (2) of this10
section begin when an application is complete or is deemed complete11
pursuant to subsection (6) or (7) of this section, and any application12
not determined to be complete by a county board or deemed complete13
pursuant to subsection (6) or (7) of this section within ninety days14
after filing shall be deemed complete. 15
(5) Within fifteen days after receiving an application for any16
permit for a renewable energy generation facility or energy storage17
resource, a county board shall notify the permit applicant in writing18
whether the application is complete or identify with specificity:19
(a) Each item of information or documentation required by the20
Nameplate Capacity Tax Facility Standards Act or by resolution adopted21
prior to application filing that is missing or deficient; and22
(b) The specific statute or resolution that requires such23
information or documentation. 24
(6) Failure to notify the permit applicant within fifteen business25
days, or failure to identify deficiencies with the specificity required26
by subsection (5) of this section, shall result in the application being27
deemed complete. 28
(7) After notifying a permit applicant of deficiencies, the county29
shall have five business days after receiving the requested information30
or documentation to determine whether the deficiencies have been cured.31
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Failure to respond within five business days shall result in the1
application being deemed complete. 2
(8) A county board may not request additional information beyond3
that specified in the notification under subsection (5) of this section4
except to address issues that could not reasonably have been identified5
in the initial review of the application. 6
(9) The county board shall approve such application if, upon review,7
the construction of the renewable energy generation facility or energy8
storage resource is in the best interests of the public and issue the9
permit for construction. 10
Sec. 19. (1) Any permit applicant aggrieved by the denial of an11
application filed pursuant to section 17 of this act may appeal such12
denial to the district court of a county in which the renewable energy13
generation facility or energy storage resource is proposed to be located.14
(2) Appeals under this section shall be filed within thirty days15
after a county board's denial of the application. 16
(3) The court shall review the county board's denial to determine17
whether the denial was: 18
(a) Arbitrary and capricious; 19
(b) Based on a determination of fact that is not supported by20
evidence in the record; or 21
(c) Contrary to law or in excess of the county board's authority22
under the Nameplate Capacity Tax Facility Standards Act.23
(4) If the court finds that the denial meets any one of the24
conditions described in subsection (3) of this section, the court shall25
remand the matter to the county board with instructions to approve the26
permit or to reconsider the application consistent with the court's27
findings. 28
(5) A prevailing permit applicant shall be entitled to recover29
reasonable attorney's fees and costs from the county.30
Sec. 20. (1) Political subdivisions may include ongoing compliance31
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with the standards described in sections 5 to 16 of this act as1
additional conditions on any permit issued for a renewable energy2
generation facility or energy storage resource. 3
(2) Noncompliance with such standards shall not affect the validity4
of any permit issued but may subject the owner of a renewable energy5
generation facility or energy storage resource to enforcement actions by6
affected landowners and to sanctions by political subdivisions for7
noncompliance. 8
Sec. 21. Nothing in the Nameplate Capacity Tax Facility Standards9
Act shall prohibit the owner of a renewable energy generation facility or10
energy storage resource from voluntarily agreeing to more restrictive11
standards as part of private agreements with affected landowners.12
Sec. 22. The Nameplate Capacity Tax Facility Standards Act shall13
not apply to customer-generators as defined in section 70-2002.14
Sec. 23. (1) The governing body of a political subdivision imposing15
any of the standards described in sections 5 to 16 of this act on a16
renewable energy generation facility or energy storage resource shall17
adopt such standards by resolution following a public hearing with at18
least ten days' published notice. 19
(2) Any ordinance, resolution, or regulation in effect on January 1,20
2027, that imposes requirements more restrictive than standards described21
in sections 5 to 16 of this act shall be void and unenforceable as22
applied to: 23
(a) Renewable energy generation facilities or energy storage24
resources permitted on or after January 1, 2027; and25
(b) Renewable energy generation facilities or energy storage26
resources permitted before January 1, 2027, if the permit holder elects27
in writing to be subject to the standards described in sections 5 to 1628
of this act. 29
(3)(a) Any permits for renewable energy generation facilities or30
energy storage resources granted by a political subdivision before31
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January 1, 2027, pursuant to an ordinance, resolution, or regulation in1
effect at the time the permit was granted shall remain valid and2
enforceable. 3
(b) Nothing in the Nameplate Capacity Tax Facility Standards Act4
shall be construed to invalidate or impair such permits or the rights5
granted thereunder unless the permitholder makes the election under6
subdivision (2)(b) of this section. 7
(4) The holder of any permit described in subdivision (3)(a) of this8
section shall have the right to maintain the permitted facility or9
resource, including replacing all wind turbine generators, solar panel10
arrays, and energy storage containers, to the extent allowed under such11
permit without obtaining a new permit or amending an existing permit12
other than a ministerial zoning or building permit required for13
informational purposes only. 14
(5) A permitholder's election under subdivision (2)(b) of this15
section shall be irrevocable once made and shall apply to all aspects of16
the renewable energy generation facility or energy storage resource. Upon17
the election, the permitholder shall comply with all requirements of the18
Nameplate Capacity Tax Facility Standards Act. 19
Sec. 24. (1) An owner of a renewable energy generation facility or20
energy storage resource aggrieved by a political subdivision's imposition21
of requirements more restrictive than the standards described in sections22
5 to 16 of this act may bring an action in district court for declaratory23
and injunctive relief. 24
(2) A court finding that a political subdivision has imposed25
requirements more restrictive than the standards described in sections 526
to 16 of this act shall award reasonable attorney's fees and costs to a27
prevailing facility or resource owner. 28
Sec. 25. (1) It is the intent of the Legislature that any permit a29
political subdivision may grant for a renewable energy generation30
facility and energy storage resource is no more restrictive on such31
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facility or resource than the standards described in sections 5 to 16 of1
this act. 2
(2) Political subdivisions have only the authority expressly granted3
in the Nameplate Capacity Tax Facility Standards Act with respect to4
renewable energy generation facilities and energy storage resources.5
Counties may adopt less restrictive standards for facilities and6
resources than the standards described in sections 5 to 16 of this act7
but may not impose any additional requirements. 8
(3) Political subdivisions shall not adopt or enforce any ordinance,9
resolution, or regulation that imposes standards or requirements more10
restrictive than the standards described in sections 5 to 16 of this act11
with respect to renewable energy generation facilities or energy storage12
resources. 13
(4) The Nameplate Capacity Tax Facility Standards Act shall preempt14
and supersede any conflicting local ordinance, resolution, or regulation15
to the extent of such conflict. Political subdivisions retain authority16
to impose less restrictive requirements on or approve permits that do not17
impose any discretionary requirements beyond ministerial building and18
zoning permits for renewable energy generation facilities or energy19
storage resources. 20
(5) Nothing in the Nameplate Capacity Tax Facility Standards Act21
shall be construed to limit the authority of political subdivisions to22
regulate land use for purposes other than renewable energy generation23
facilities or energy storage resources. 24
Sec. 26. Section 13-518, Revised Statutes Supplement, 2025, is25
amended to read: 26
13-518 For purposes of sections 13-518 to 13-522:27
(1) Allowable growth means (a) for governmental units other than28
community colleges, the percentage increase in taxable valuation in29
excess of the base limitation established under section 77-3446, if any,30
due to (i) improvements to real property as a result of new construction31
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and additions to existing buildings, (ii) any other improvements to real1
property which increase the value of such property, (iii) any increase in2
valuation due to annexation of real property by the governmental unit,3
(iv) a change in the use of real property, (v) any increase in personal4
property valuation over the prior year, and (vi) the accumulated excess5
valuation over the redevelopment project valuation described in section6
18-2147 of the Community Development Law for redevelopment projects7
within the governmental unit in the year immediately after the division8
of taxes for such redevelopment project has ended and (b) for community9
colleges, the percentage increase in excess of the base limitation, if10
any, in full-time equivalent students from the second year to the first11
year preceding the year for which the budget is being determined;12
(2) Capital improvements means (a) acquisition of real property or13
(b) acquisition, construction, or extension of any improvements on real14
property; 15
(3) Governing body has the same meaning as in section 13-503, except16
that for fiscal years beginning on or after July 1, 2025, such term shall17
not include the governing body of any county, city, or village;18
(4) Governmental unit means every political subdivision which has19
authority to levy a property tax or authority to request levy authority20
under section 77-3443, except that such term shall not include (a)21
sanitary and improvement districts which have been in existence for five22
years or less, (b) school districts, or (c) for fiscal years beginning on23
or after July 1, 2025, counties, cities, or villages;24
(5) Qualified sinking fund means a fund or funds maintained25
separately from the general fund to pay for acquisition or replacement of26
tangible personal property with a useful life of five years or more which27
is to be undertaken in the future but is to be paid for in part or in28
total in advance using periodic payments into the fund. The term includes29
sinking funds under subdivision (13) of section 35-508 for firefighting30
and rescue equipment or apparatus; 31
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(6) Restricted funds means (a) property tax, excluding any amounts1
refunded to taxpayers, (b) payments in lieu of property taxes, (c) local2
option sales taxes, (d) motor vehicle taxes, (e) state aid, (f) transfers3
of surpluses from any user fee, permit fee, or regulatory fee if the fee4
surplus is transferred to fund a service or function not directly related5
to the fee and the costs of the activity funded from the fee, (g) any6
funds excluded from restricted funds for the prior year because they were7
budgeted for capital improvements but which were not spent and are not8
expected to be spent for capital improvements, (h) the tax provided in9
sections 77-27,223 to 77-27,227 beginning in the second fiscal year in10
which the county will receive a full year of receipts, and (i) any excess11
tax collections returned to the county under section 77-1776. Funds12
received pursuant to the nameplate capacity tax levied under section13
77-6203 for the first five years after a renewable energy generation14
facility or energy storage resource has been commissioned are15
nonrestricted funds; and 16
(7) State aid means: 17
(a) For all governmental units, state aid paid pursuant to sections18
60-3,202 and 77-3523 and reimbursement provided pursuant to section19
77-1239; 20
(b) For municipalities, state aid to municipalities paid pursuant to21
sections 39-2501 to 39-2520, 60-3,190, and 77-27,139.04 and insurance22
premium tax paid to municipalities; 23
(c) For counties, state aid to counties paid pursuant to sections24
60-3,184 to 60-3,190, insurance premium tax paid to counties, and25
reimbursements to counties from funds appropriated pursuant to section26
29-3933; 27
(d) For community colleges, state aid to community colleges paid28
pursuant to the Community College Aid Act; 29
(e) For educational service units, state aid appropriated under30
sections 79-1241.01 and 79-1241.03; and 31
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(f) For local public health departments as defined in section1
71-1626, state aid as distributed under section 71-1628.08.2
Sec. 27. Section 77-105, Reissue Revised Statutes of Nebraska, is3
amended to read: 4
77-105 The term tangible personal property includes all personal5
property possessing a physical existence, excluding money. The term6
tangible personal property also includes trade fixtures, which means7
machinery and equipment, regardless of the degree of attachment to real8
property, used directly in commercial, manufacturing, or processing9
activities conducted on real property, regardless of whether the real10
property is owned or leased, and all depreciable tangible personal11
property described in subsection (9) of section 77-202 used in the12
generation of electricity using wind, solar, biomass, or landfill gas as13
the fuel source or in the storage of such electricity in an energy14
storage resource as defined in section 77-6202. The term intangible15
personal property includes all other personal property, including money.16
Sec. 28. Section 77-202, Revised Statutes Supplement, 2025, is17
amended to read: 18
77-202 (1) The following property shall be exempt from property19
taxes: 20
(a) Property of the state and its governmental subdivisions to the21
extent used or being developed for use by the state or governmental22
subdivision for a public purpose. For purposes of this subdivision:23
(i) Property of the state and its governmental subdivisions means24
(A) property held in fee title by the state or a governmental subdivision25
or (B) property beneficially owned by the state or a governmental26
subdivision in that it is used for a public purpose and is being acquired27
under a lease-purchase agreement, financing lease, or other instrument28
which provides for transfer of legal title to the property to the state29
or a governmental subdivision upon payment of all amounts due thereunder.30
If the property to be beneficially owned by a governmental subdivision31
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has a total acquisition cost that exceeds the threshold amount or will be1
used as the site of a public building with a total estimated construction2
cost that exceeds the threshold amount, then such property shall qualify3
for an exemption under this section only if the question of acquiring4
such property or constructing such public building has been submitted at5
a primary, general, or special election held within the governmental6
subdivision and has been approved by the voters of the governmental7
subdivision. For purposes of this subdivision, threshold amount means the8
greater of fifty thousand dollars or six-tenths of one percent of the9
total actual value of real and personal property of the governmental10
subdivision that will beneficially own the property as of the end of the11
governmental subdivision's prior fiscal year; and 12
(ii) Public purpose means use of the property (A) to provide public13
services with or without cost to the recipient, including the general14
operation of government, public education, public safety, transportation,15
public works, civil and criminal justice, public health and welfare,16
developments by a public housing authority, parks, culture, recreation,17
community development, and cemetery purposes, or (B) to carry out the18
duties and responsibilities conferred by law with or without19
consideration. Public purpose does not include leasing of property to a20
private party unless the lease of the property is at fair market value21
for a public purpose. Leases of property by a public housing authority to22
low-income individuals as a place of residence are for the authority's23
public purpose; 24
(b) Unleased property of the state or its governmental subdivisions25
which is not being used or developed for use for a public purpose but26
upon which a payment in lieu of taxes is paid for public safety, rescue,27
and emergency services and road or street construction or maintenance28
services to all governmental units providing such services to the29
property. Except as provided in Article VIII, section 11, of the30
Constitution of Nebraska, the payment in lieu of taxes shall be based on31
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the proportionate share of the cost of providing public safety, rescue,1
or emergency services and road or street construction or maintenance2
services unless a general policy is adopted by the governing body of the3
governmental subdivision providing such services which provides for a4
different method of determining the amount of the payment in lieu of5
taxes. The governing body may adopt a general policy by ordinance or6
resolution for determining the amount of payment in lieu of taxes by7
majority vote after a hearing on the ordinance or resolution. Such8
ordinance or resolution shall nevertheless result in an equitable9
contribution for the cost of providing such services to the exempt10
property; 11
(c) Property owned by and used exclusively for agricultural and12
horticultural societies; 13
(d)(i) Property owned by educational, religious, charitable, or14
cemetery organizations, or any organization for the exclusive benefit of15
any such educational, religious, charitable, or cemetery organization,16
and used exclusively for educational, religious, charitable, or cemetery17
purposes, when such property is not (A) owned or used for financial gain18
or profit to either the owner or user, (B) used for the sale of alcoholic19
liquors for more than twenty hours per week, or (C) owned or used by an20
organization which discriminates in membership or employment based on21
race, color, or national origin. 22
(ii) For purposes of subdivision (1)(d) of this section:23
(A) Educational organization means (I) an institution operated24
exclusively for the purpose of offering regular courses with systematic25
instruction in academic, vocational, or technical subjects or assisting26
students through services relating to the origination, processing, or27
guarantying of federally reinsured student loans for higher education,28
(II) a museum or historical society operated exclusively for the benefit29
and education of the public, or (III) a nonprofit organization that owns30
or operates a child care facility; and 31
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(B) Charitable organization includes (I) an organization operated1
exclusively for the purpose of the mental, social, or physical benefit of2
the public or an indefinite number of persons and (II) a fraternal3
benefit society organized and licensed under sections 44-1072 to4
44-10,109. 5
(iii) The property tax exemption authorized in subdivision (1)(d)(i)6
of this section shall apply to any for-profit skilled nursing facility,7
for-profit nursing facility, or for-profit assisted-living facility that8
provides housing for medicaid beneficiaries, except that the exemption9
amount for such property shall be a percentage of the property taxes that10
would otherwise be due. Such percentage shall be equal to the average11
percentage of occupied beds in the facility provided to medicaid12
beneficiaries over the most recent three-year period. This subdivision13
shall not be construed to modify, limit, or reduce any property tax14
exemption provided to a nonprofit skilled nursing facility, nonprofit15
nursing facility, or nonprofit assisted-living facility pursuant to16
subdivision (1)(d)(i) of this section. For purposes of this subdivision,17
skilled nursing facility has the same meaning as in section 71-429,18
nursing facility has the same meaning as in section 71-424, and assisted-19
living facility has the same meaning as in section 71-5903.20
(iv) The property tax exemption authorized in subdivision (1)(d)(i)21
of this section shall apply to a building that (A) is owned by a22
charitable organization, (B) is made available to students in attendance23
at an educational institution, and (C) is recognized by such educational24
institution as approved student housing, except that the exemption shall25
only apply to the commons area of such building, including any common26
rooms and cooking and eating facilities; 27
(e) Household goods and personal effects not owned or used for28
financial gain or profit to either the owner or user; and29
(f) A portion of the property owned by a taxpayer as provided in the30
Recreational Trail Easement Property Tax Exemption Act.31
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(2) The increased value of land by reason of shade and ornamental1
trees planted along the highway shall not be taken into account in the2
valuation of land. 3
(3) Tangible personal property which is not depreciable tangible4
personal property as defined in section 77-119 shall be exempt from5
property tax. 6
(4) Motor vehicles, trailers, and semitrailers required to be7
registered for operation on the highways of this state shall be exempt8
from payment of property taxes. 9
(5) Business and agricultural inventory shall be exempt from the10
personal property tax. For purposes of this subsection, business11
inventory includes personal property owned for purposes of leasing or12
renting such property to others for financial gain only if the personal13
property is of a type which in the ordinary course of business is leased14
or rented thirty days or less and may be returned at the option of the15
lessee or renter at any time and the personal property is of a type which16
would be considered household goods or personal effects if owned by an17
individual. All other personal property owned for purposes of leasing or18
renting such property to others for financial gain shall not be19
considered business inventory. 20
(6) Any personal property exempt pursuant to subsection (2) of21
section 77-4105 or section 77-5209.02 shall be exempt from the personal22
property tax. 23
(7) Livestock shall be exempt from the personal property tax.24
(8) Any personal property exempt pursuant to the Nebraska Advantage25
Act or the ImagiNE Nebraska Act shall be exempt from the personal26
property tax. 27
(9) Any depreciable tangible personal property used directly in the28
generation of electricity using wind as the fuel source or in the storage29
of such electricity in an energy storage resource as defined in section30
77-6202 shall be exempt from the property tax levied on depreciable31
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tangible personal property. Any depreciable tangible personal property1
used directly in the generation of electricity using solar, biomass, or2
landfill gas as the fuel source or in the storage of such electricity in3
an energy storage resource as defined in section 77-6202 shall be exempt4
from the property tax levied on depreciable tangible personal property if5
such depreciable tangible personal property was installed on or after6
January 1, 2016, and has a nameplate capacity of one hundred kilowatts or7
more. Depreciable tangible personal property used directly in the8
generation or storage of electricity using wind, solar, biomass, or9
landfill gas as the fuel source includes, but is not limited to, wind10
turbines, rotors and blades, towers, solar panels, trackers, generating11
equipment, transmission components, substations, supporting structures or12
racks, inverters, and other system components such as wiring, control13
systems, switchgears, and generator step-up transformers , battery14
modules, battery racks, power conversion systems, battery enclosures,15
battery cells, and battery management systems. 16
(10) Any tangible personal property that is acquired by a person17
operating a data center located in this state, that is assembled,18
engineered, processed, fabricated, manufactured into, attached to, or19
incorporated into other tangible personal property, both in component20
form or that of an assembled product, for the purpose of subsequent use21
at a physical location outside this state by the person operating a data22
center shall be exempt from the personal property tax. Such exemption23
extends to keeping, retaining, or exercising any right or power over24
tangible personal property in this state for the purpose of subsequently25
transporting it outside this state for use thereafter outside this state.26
For purposes of this subsection, data center means computers, supporting27
equipment, and other organized assembly of hardware or software that are28
designed to centralize the storage, management, or dissemination of data29
and information, environmentally controlled structures or facilities or30
interrelated structures or facilities that provide the infrastructure for31
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housing the equipment, such as raised flooring, electricity supply,1
communication and data lines, Internet access, cooling, security, and2
fire suppression, and any building housing the foregoing.3
(11) For tax years prior to tax year 2020, each person who owns4
property required to be reported to the county assessor under section5
77-1201 shall be allowed an exemption amount as provided in the Personal6
Property Tax Relief Act. For tax years prior to tax year 2020, each7
person who owns property required to be valued by the state as provided8
in section 77-601, 77-682, 77-801, or 77-1248 shall be allowed a9
compensating exemption factor as provided in the Personal Property Tax10
Relief Act. 11
(12)(a) Broadband equipment shall be exempt from the personal12
property tax if such broadband equipment is: 13
(i) Deployed in an area funded in whole or in part by funds from the14
Broadband Equity, Access, and Deployment Program, authorized by the15
federal Infrastructure Investment and Jobs Act, Public Law 117-58; or16
(ii) Deployed in a qualified census tract located within the17
corporate limits of a city of the metropolitan class and being utilized18
to provide end-users with access to the Internet at speeds of at least19
one hundred megabits per second for downloading and at least one hundred20
megabits per second for uploading. 21
(b) An owner of broadband equipment seeking an exemption under this22
section shall apply for an exemption to the county assessor on or before23
December 31 of the year preceding the year for which the exemption is to24
begin. If the broadband equipment meets the criteria described in this25
subsection, the county assessor shall approve the application within26
thirty calendar days after receiving the application. The application27
shall be on forms prescribed by the Tax Commissioner.28
(c) For purposes of this subsection: 29
(i) Broadband communications service means telecommunications30
service as defined in section 86-121, video programming as defined in 4731
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U.S.C. 522, as such section existed on January 1, 2024, or Internet1
access as defined in section 1104 of the federal Internet Tax Freedom2
Act, Public Law 105-277; 3
(ii) Broadband equipment means machinery or equipment used to4
provide broadband communications service and includes, but is not limited5
to, wires, cables, fiber, conduits, antennas, poles, switches, routers,6
amplifiers, rectifiers, repeaters, receivers, multiplexers, duplexers,7
transmitters, circuit cards, insulating and protective materials and8
cases, power equipment, backup power equipment, diagnostic equipment,9
storage devices, modems, and other general central office or headend10
equipment, such as channel cards, frames, and cabinets, or equipment used11
in successor technologies, including items used to monitor, test,12
maintain, enable, or facilitate qualifying equipment, machinery,13
software, ancillary components, appurtenances, accessories, or other14
infrastructure that is used in whole or in part to provide broadband15
communications service. Machinery or equipment used to produce broadband16
communications service does not include personal consumer electronics,17
including, but not limited to, smartphones, computers, and tablets; and18
(iii) Qualified census tract means a qualified census tract as19
defined in 26 U.S.C. 42(d)(5)(B)(ii)(I), as such section existed on20
January 1, 2024. 21
Sec. 29. Section 77-1359, Revised Statutes Cumulative Supplement,22
2024, is amended to read: 23
77-1359 The Legislature finds and declares that agricultural land24
and horticultural land shall be a separate and distinct class of real25
property for purposes of assessment. The assessed value of agricultural26
land and horticultural land shall not be uniform and proportionate with27
all other real property, but the assessed value shall be uniform and28
proportionate within the class of agricultural land and horticultural29
land. 30
For purposes of this section and section 77-1363:31
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(1)(a) Agricultural land and horticultural land means a parcel of1
land, excluding land associated with a building or enclosed structure2
located on the parcel, which is primarily used for agricultural or3
horticultural purposes, including wasteland lying in or adjacent to and4
in common ownership or management with other agricultural land and5
horticultural land. 6
(b) Agricultural land and horticultural land includes does not7
include land used for a renewable energy generation facility or energy8
storage resource commercial purposes that are not agricultural or9
horticultural purposes, such as land used for a solar farm or wind farm;10
(2)(a) Agricultural or horticultural purposes means used for the11
commercial production of any plant or animal product in a raw or12
unprocessed state that is derived from the science and art of13
agriculture, aquaculture, or horticulture. 14
(b) Agricultural or horticultural purposes includes the following15
uses of land: 16
(i) Land retained or protected for future agricultural or17
horticultural purposes under a conservation easement as provided in the18
Conservation and Preservation Easements Act except when the parcel or a19
portion thereof is being used for purposes other than agricultural or20
horticultural purposes; and 21
(ii) Land enrolled in a federal or state program in which payments22
are received for removing such land from agricultural or horticultural23
production; and . 24
(iii) Land used for a renewable energy generation facility or an25
energy storage resource or any infrastructure serving or appurtenant or26
accessory to such a use. 27
(c) Whether a parcel of land is primarily used for agricultural or28
horticultural purposes shall be determined without regard to whether some29
or all of the parcel is platted and subdivided into separate lots or30
developed with improvements consisting of streets, sidewalks, curbs,31
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gutters, sewer lines, water lines, or utility lines;1
(3) Energy storage resource has the same meaning as in section2
77-6202; 3
(4) (3) Farm home site means land contiguous to a farm site which4
includes an inhabitable residence and improvements used for residential5
purposes and which is located outside of urban areas or outside a platted6
and zoned subdivision; and 7
(5) (4) Farm site means the portion of land contiguous to land8
actively devoted to agriculture which includes improvements that are9
agricultural or horticultural in nature, including any uninhabitable or10
unimproved farm home site; and . 11
(6) Renewable energy generation facility has the same meaning as in12
section 77-6202. 13
Sec. 30. Section 77-6201, Reissue Revised Statutes of Nebraska, is14
amended to read: 15
77-6201 The Legislature finds and declares: 16
(1) The purpose of the nameplate capacity tax levied under section17
77-6203 is to replace property taxes currently imposed on renewable18
energy and energy storage infrastructure and depreciated over a short19
period of time in a way that causes local budgeting challenges and20
increases upfront costs for renewable energy developers;21
(2) The nameplate capacity tax should be competitive with taxes22
imposed directly and indirectly on renewable energy generation , storage,23
and development in other states; 24
(3) The nameplate capacity tax should be fair and nondiscriminatory25
when compared with other taxes imposed on other industries in the state;26
and 27
(4) The nameplate capacity tax should not be singled out as a source28
of General Fund revenue during times of economic hardship.29
Sec. 31. Section 77-6202, Revised Statutes Cumulative Supplement,30
2024, is amended to read: 31
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77-6202 For purposes of sections 77-6201 to 77-6204:1
(1) Commissioned means the renewable energy generation facility or2
energy storage resource has been in commercial operation for at least3
twenty-four hours. A renewable energy generation facility or energy4
storage resource is not in commercial operation unless the renewable5
energy generation facility or energy storage resource is connected and6
transmitting energy to the electrical grid , to an associated renewable7
energy generation facility, or to the end user if the renewable energy8
generation facility is a customer-generator as defined in section9
70-2002; 10
(2) Energy storage resource means equipment or systems that are co-11
located with a renewable energy generation facility and capable of12
receiving electrical energy, storing such energy, and discharging such13
energy, with a nameplate capacity of one hundred kilowatts or more. An14
energy storage resource shall be co-located with a renewable energy15
generation facility if it is located on the same parcel of land or on16
parcels of land that are contiguous to and under common ownership or17
lease with the parcel on which the renewable energy generation facility18
is located. Energy storage resource does not include any device or19
equipment intended solely to inject or absorb reactive power, including20
any capacitor and synchronous condenser, or to provide power for electric21
vehicles; 22
(3) (2) Nameplate capacity means the capacity of (a) a renewable23
energy generation facility to generate electricity as measured in24
megawatts, including fractions of a megawatt , or (b) an energy storage25
resource to store electricity as measured in megawatts, including26
fractions of a megawatt. Nameplate capacity shall be determined based on27
the facility's alternating current capacity of the facility or resource ;28
and 29
(4) Permitted means the proposed renewable energy generation30
facility or energy storage resource has received one or more government31
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permits or licenses associated with the proposed facility or resource;1
and 2
(5) (3) Renewable energy generation facility means (a) a facility3
that generates electricity using wind as the fuel source or (b) a4
facility that generates electricity using solar, biomass, or landfill gas5
as the fuel source if such facility was installed on or after January 1,6
2016, and has a nameplate capacity of one hundred kilowatts or more.7
Sec. 32. Section 77-6203, Revised Statutes Cumulative Supplement,8
2024, is amended to read: 9
77-6203 (1)(a) (1) The owner of a renewable energy generation10
facility permitted before January 1, 2027, annually shall annually pay a11
nameplate capacity tax equal to the total nameplate capacity of the12
commissioned renewable energy generation facility multiplied by a tax13
rate of three thousand five hundred eighteen dollars per megawatt.14
(b) The owner of a privately owned renewable energy generation15
facility permitted on or after January 1, 2027, that generates16
electricity using wind or solar as the fuel source shall annually pay a17
nameplate capacity tax equal to the total nameplate capacity of the18
commissioned renewable energy generation facility multiplied by a tax19
rate of three thousand five hundred and eighteen dollars per megawatt.20
(c) The owner of a privately owned and permitted energy storage21
resource shall annually pay a nameplate capacity tax equal to the total22
nameplate capacity of the commissioned energy storage resource multiplied23
by a tax rate of three thousand five hundred eighteen dollars per24
megawatt. 25
(2) No tax shall be imposed on a renewable energy generation26
facility or energy storage resource: 27
(a) Owned or operated by the federal government, the State of28
Nebraska, a public power district, a public power and irrigation29
district, an individual municipality, a registered group of30
municipalities, an electric membership association, or a cooperative; or31
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(b) That is a customer-generator as defined in section 70-2002.1
(3) No tax levied pursuant to this section shall be construed to2
constitute restricted funds as defined in section 13-518 for the first3
five years after the renewable energy generation facility or energy4
storage resource is commissioned. 5
(4) The presence of one or more renewable energy generation6
facilities, energy storage resources, or supporting infrastructure shall7
not be a factor in the assessment, determination of actual value, or8
classification under section 77-201 of the real property underlying or9
adjacent to such facilities, resources, or infrastructure.10
(5)(a)(i) On or before March 1 of each year, the owner of a11
renewable energy generation facility or energy storage resource subject12
to the nameplate capacity tax shall file a report with the county13
treasurer of each county in which the facility or resource is located and14
provide a copy of such report to the Department of Revenue.15
(ii) The report shall state the nameplate capacity of the facility16
or resource for the prior calendar year from January 1 through December17
31 and shall be on a form prescribed by the Department of Revenue.18
(b) Upon receipt of the report filed pursuant to subdivision (5)(a)19
of this section, the county treasurer shall calculate the amount of the20
nameplate capacity tax based on the reported nameplate capacity and the21
tax rate provided in subsection (1) of this section. The county treasurer22
shall, prior to April 1 of each year, notify the owner of the amount of23
tax due and the date such tax is due. 24
(c) The Department of Revenue shall review all reports filed25
pursuant to subdivision (5)(a) of this section for accuracy, consistency,26
and compliance with this section. The Department of Revenue may audit27
facilities as necessary to verify reported nameplate capacity. (5)(a) The28
Department of Revenue shall collect the tax due under this section.29
(d) (b) The tax shall be imposed beginning the first calendar year30
the renewable energy generation facility or energy storage resource is31
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commissioned. A renewable energy generation facility that uses wind as1
the fuel source which was commissioned prior to July 15, 2010, shall be2
subject to the tax levied pursuant to sections 77-6201 to 77-6204 on and3
after January 1, 2010. The amount of property tax on depreciable tangible4
personal property previously paid on a renewable energy generation5
facility that uses wind as the fuel source which was commissioned prior6
to July 15, 2010, which is greater than the amount that would have been7
paid pursuant to sections 77-6201 to 77-6204 from the date of8
commissioning until January 1, 2010, shall be credited against any tax9
due under Chapter 77, and any amount so credited that is unused in any10
tax year shall be carried over to subsequent tax years until fully11
utilized. The amount of property tax on depreciable tangible personal12
property previously paid on an energy storage resource which was13
commissioned before January 1, 2027, which is greater than the amount14
that would have been paid pursuant to sections 77-6201 to 77-6204 from15
the date of commissioning until January 1, 2027, shall be credited16
against any tax due under Chapter 77, and any amount so credited that is17
unused in any tax year shall be carried over to subsequent tax years18
until fully utilized. 19
(e)(i) (c)(i) The tax for the first calendar year shall be prorated20
based upon the number of days remaining in the calendar year after the21
renewable energy generation facility or energy storage resource is22
commissioned. 23
(ii) In the first year in which a renewable energy generation24
facility or energy storage resource is taxed or in any year in which25
additional commissioned nameplate capacity is added to a renewable energy26
generation facility or energy storage resource, the taxes on the initial27
or additional nameplate capacity shall be prorated for the number of days28
remaining in the calendar year. 29
(iii) When a renewable energy generation facility or energy storage30
resource is decommissioned or made nonoperational by a change in law31
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during a tax year, the taxes shall be prorated for the number of days1
during which the renewable energy generation facility or energy storage2
resource was not decommissioned or was operational.3
(iv) When the capacity of a renewable energy generation facility or4
energy storage resource to produce or store electricity is reduced but5
the renewable energy generation facility or energy storage resource is6
not decommissioned, the nameplate capacity of the renewable energy7
generation facility or energy storage resource is deemed to be unchanged.8
(6)(a) On March 1 of each year, the owner of a renewable energy9
generation facility shall file with the Department of Revenue a report on10
the nameplate capacity of the facility for the previous year from January11
1 through December 31. All taxes imposed by this section shall be due on12
April 1 and shall be delinquent if not paid to the county treasurer of13
each county in which the renewable energy generation facility or energy14
storage resource is located. on a quarterly basis on April 1 and each15
quarter thereafter. Delinquent quarterly payments shall draw interest at16
the rate provided for in section 45-104.02, as such rate may from time to17
time be adjusted. 18
(b) The owner of a renewable energy generation facility or energy19
storage resource is liable for the taxes under this section with respect20
to the facility or resource, whether or not the owner of the facility or21
resource is the owner of the land on which the facility or resource is22
situated. 23
(7) Failure to file a report required by subsection (6) of this24
section, filing such report late, failure to pay taxes due, or25
underpayment of such taxes shall result in a penalty of five percent of26
the amount due being imposed for each quarter the report is overdue or27
the payment is delinquent, except that the penalty shall not exceed ten28
thousand dollars. 29
(8) The Department of Revenue shall enforce the provisions of this30
section. The department may adopt and promulgate rules and regulations31
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to: 1
(a) Prescribe the form and content of reports required under2
subsection (5) of this section; 3
(b) Establish audit procedures and standards for verifying nameplate4
capacity reported under subsection (5) of this section;5
(c) Ensure consistent calculation and collection of the nameplate6
capacity tax across all counties; and 7
(d) Establish procedures for assessing penalties authorized under8
subsection (7) of this section for failure to file required reports, late9
filing, failure to pay taxes due, or underpayment of taxes. necessary for10
the implementation and enforcement of this section.11
(9) The county treasurer shall distribute all revenue received12
pursuant to this section as provided in section 77-6204 within thirty13
days after receipt of such revenue. The Department of Revenue shall14
separately identify the proceeds from the tax imposed by this section and15
shall pay all such proceeds over to the county treasurer of the county16
where the renewable energy generation facility is located within thirty17
days after receipt of such proceeds. 18
(10) Each county treasurer shall report annually to the Department19
of Revenue the total amount of nameplate capacity tax collected under20
this section for audit and verification purposes. 21
Sec. 33. Section 77-6204, Revised Statutes Supplement, 2025, is22
amended to read: 23
77-6204 (1)(a) (1) The county treasurer shall distribute all revenue24
received from taxes imposed on renewable energy generation facilities and25
energy storage resources permitted before January 1, 2027, the Department26
of Revenue pursuant to section 77-6203 as follows:27
(i) (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
(ii) (b) The remainder of such revenue shall be distributed to local31
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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 or in the storage of such electricity in an energy storage5
resource. 6
(b) The county treasurer shall distribute all revenue from taxes7
imposed on renewable energy generation facilities and energy storage8
resources permitted on or after January 1, 2027, pursuant to section9
77-6203 as follows: 10
(i) Ninety-five percent of such revenue shall be distributed to the11
counties in proportion to the amount of tax paid by renewable energy12
generation facilities or energy storage resources physically located in13
each county. If the facility or resource is located entirely within one14
county, all such revenue from the tax paid by such facility or resource15
shall be distributed to that county. If the facility or resource is16
located in more than one county, the revenue from the tax paid by such17
facility or resource shall be apportioned among such counties in18
proportion to the amount of nameplate capacity of the facility or19
resource that is physically located within each county's boundaries;20
(ii) Five percent of such revenue shall be distributed to the21
community college areas, as defined in section 85-1503, in proportion to22
the amount of tax paid by renewable energy generation facilities or23
energy storage resources physically located in each community college24
area. If the facility or resource is located entirely within one25
community college area, all such revenue from the tax paid by such26
facility or resource shall be distributed to that community college area.27
If the facility or resource is located in more than one community college28
area, the revenue from the tax paid by such facility or resource shall be29
apportioned among such community college areas in proportion to the30
amount of nameplate capacity of the facility or resource that is31
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physically located within each community college area's boundaries.1
(2) A local taxing entity's status as eligible for distribution2
under subdivision (1)(a)(ii) (1)(b) of this section shall not be affected3
when and if the net book value of personal property used directly in the4
generation of electricity using wind, solar, biomass, or landfill gas as5
the fuel source or in the storage of such electricity in an energy6
storage resource becomes zero. A local taxing entity's status as eligible7
for distribution under such subdivision shall be affected by the disposal8
of all of the exempt depreciable personal property used directly in the9
generation of electricity using wind, solar, biomass, or landfill gas as10
the fuel source or in the storage of such electricity in an energy11
storage resource. 12
(3) The distribution to each eligible local taxing entity under13
subdivision (1)(a)(ii) (1)(b) of this section shall be calculated by14
determining the amount of taxes that the eligible local taxing entity15
levied during the taxable year and dividing this amount by the total tax16
levied by all of the eligible local taxing entities during the year. Each17
eligible entity's resulting fraction shall then be multiplied by the18
amount of revenue available for distribution pursuant to subdivision (1)19
(a)(ii) (1)(b) of this section to determine the portion of such revenue20
due each local taxing entity. 21
(4) The Department of Revenue shall not retain any revenue collected22
pursuant to sections 77-6201 to 77-6204 for distribution, use, transfer,23
pledge, or allocation to or from the General Fund.24
(5) Each county treasurer shall report annually to the Department of25
Revenue the distribution of revenue under this section for audit and26
verification purposes. 27
(6) For purposes of this section, the physical location of nameplate28
capacity of a renewable energy generation facility or energy storage29
resource shall be determined as follows: 30
(a) For wind energy generation facilities, by the location of each31
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wind turbine structure; 1
(b) For solar energy generation facilities, by the location of each2
solar panel array; and 3
(c) For energy storage resources, by the location of each energy4
storage container. 5
Sec. 34. This act becomes operative on January 1, 2027.6
Sec. 35. If any section in this act or any part of any section is7
declared invalid or unconstitutional, the declaration shall not affect8
the validity or constitutionality of the remaining portions.9
Sec. 36. Original sections 77-105 and 77-6201, Reissue Revised10
Statutes of Nebraska, sections 77-1359, 77-6202, and 77-6203, Revised11
Statutes Cumulative Supplement, 2024, and sections 13-518, 77-202, and12
77-6204, Revised Statutes Supplement, 2025, are repealed.13
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