Nebraska Ethanol Board

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About NEB: Board Structure & Funding

The Nebraska Ethanol Board is a state agency, created in 1971 by the Nebraska Legislature—the first state agency in the United States devoted solely to the development of the ethanol industry.

The Nebraska Ethanol Board focuses on four key issues: ethanol production and industry support, market development, research and technology issues, and public policy development.

Funding for the Nebraska Ethanol Board is provided through a program that refunds the state motor fuel tax to those who purchase fuel for off-road or industrial use. A portion of the refund requested by off-road/industrial fuel users is diverted to a fund that supports the Nebraska Ethanol Board. Since the Nebraska Ethanol Board was established, there has been a significant shift in the source of these refund requests.

Originally, the majority of the refunds was requested by farmers using gasoline to power their equipment. However, as diesel fuel became the standard in farm equipment, refund requests dropped. At the same time, however, ethanol plants were coming on line in Nebraska—and these plants use gasoline to “denature” the ethanol so that it can only be used as a fuel. The tremendous growth in ethanol production in the state has made gas tax refund requests by ethanol plants the largest source of funding for the Nebraska Ethanol Board.

Refunds of 22.35 cents per gallon of the state gasoline or E-10 Unleaded tax are available from the Nebraska Department of Revenue.  Refunds are granted to qualified purchasers who buy fuel in Nebraska, pay the state tax at the pump and use the fuel off of public roads.

Off-Road-Use Gas Tax Refund Program

What fuel qualifies for the refund?
All gasoline or E-10 Unleaded used for agricultural, quarrying, industrial or other non-highway purposes.  The fuel must be used exclusively in qualified vehicles and must not be used to propel motor vehicles upon public highways.

Who can file for the refund?
Every Nebraska individual, corporation, partnership or limited liability company may claim a refundable credit for non-highway use of gasoline or E-10 Unleaded.  To qualify for a credit one must have a separate storage container of 40 gallons or more which must be labeled “tax credit gasoline” or “non-highway use motor vehicle fuels” in large, legible letters.  To qualify for a credit, one must make at least one purchase of 40 gallons or more of non-highway use gasoline during the calendar for which a credit is claimed.

How does one file?
To receive the refund, a Nebraska Non-highway Use Motor Vehicle Fuels Credit Computation or Form 4136N must be filed with one’s state income tax return.  Fiscal year filers must file this form for the calendar in which their fiscal year begins.  Eligible taxpayers may file a claim each month for tax credit motor vehicle fuels purchased during the preceding month if they are entitled to an annual tax credit in excess of $60,000, based on claims filed for the preceding year.

For More Information:

Contact the Nebraska Ethanol Board at 402-471-2941 or
the Nebraska Department of Revenue, Division of Motor Fuels at 402-471-5730.