Nebraska has a long history of providing incentives for ethanol development — and the success of these programs is evident in the dramatic growth of the industry across the state. Summer E15 sales in the U.S. increased 46% on a per-store basis in 2019 from summer sales the year before. Since May 2019, 40 terminals have added the blend to their offerings, as have 400 retail locations nationwide. (Source: Ethanol Producer Magazine)
Fuel retailers are challenged with providing fuel choices to consumers growing more concerned about the environment and public health. When retailers provide ethanol-blended fuel they are meeting this need, saving drivers money, and supporting our economy.
ALTERNATIVE FUEL INFRASTRUCTURE TAX CREDIT
Fueling equipment for natural gas, propane, liquefied hydrogen, electricity, E85, or diesel fuel blends containing a minimum of 20% biodiesel installed through December 31, 2021, is eligible for a tax credit of 30% of the cost, not to exceed $30,000. Permitting and inspection fees are not included in covered expenses. Fueling station owners who install qualified equipment at multiple sites are allowed to use the credit towards each location.
Unused credits that qualify as general business tax credits, as defined by the Internal Revenue Service (IRS), may be carried backward one year and carried forward 20 years. For more information about claiming the credit, see IRS Form 8911, which is available on the IRS Forms and Publications website. (Reference Public Law 116-260, Public Law 116-94, Public Law 115-123, Public Law 114-113, 26 U.S. Code 30C and 38, and IRS Notice 2007-43(PDF))
USDA HIGHER BLENDS INFRASTRUCTURE INCENTIVE PROGRAM (HBIIP)
The purpose of the HBIIP is to increase significantly the sales and use of higher blends of ethanol and biodiesel by expanding the infrastructure for renewable fuels derived from U.S. agricultural products. The program is also intended to encourage a more comprehensive approach to market higher blends by sharing the costs related to building out biofuel-related infrastructure. For more information or to apply, contact Jeff Carpenter, HBIIP Manager, Rural Development, at 402-318-8195 or email.
NEBRASKA HIGHER BLEND TAX CREDIT
LB1261 allows for a credit of 5 cents on each gallon of E15 sold and 8 cents per gallon of E25 or higher blends sold – making ethanol more affordable for retailers helping keep fuel prices down for its patrons and to invest in infrastructure. Retailers can apply to the Nebraska Department of Revenue for the credits here.
FUNDING FOR OUT-OF-STATE RETAIL LOCATIONS
IOWA
The Iowa Renewable Fuels Infrastructure Program (RFIP) offers retailers cost-share grants to convert their equipment to allow for the sale of higher biofuel blends. Grants can be as high as $50,000.
This is not an all inclusive list. If you are aware of additional resources, please let us know and we will add them to our website. If you have retail locations outside of Nebraska, be sure to reach out to that state’s biofuels organizations to learn about funding resources.