Additional Guidance on the Nameplate Capacity Tax
The Nebraska Department of Revenue (the “Department”) recently issued additional guidance on the nameplate capacity tax. The nameplate capacity tax is imposed on a facility that generates electricity using wind, solar, biomass, and landfill gas as a fuel source. The tax is $3,518 per megawatt of nameplate capacity. Tangible personal property used directly in the generation of electricity by those facilities is exempt from property tax if the facility has a nameplate capacity of 100 kilowatts or more.
In May 2016, the Department issued Directive 16-1, which provides guidance to county assessors relating to the assessment and valuation of facilities generating renewable energy. In October, the Department reissued Form 424, which the owner of the facility, the county assessor, or other interested party uses to provide information to the Department regarding construction of the facility. Additionally, the Department issued a list of frequently asked questions and answers to them, which provides general guidance relating to the taxation of property used, or payments made, by owners of renewable energy generation facilities.
For additional information regarding the nameplate capacity tax, or the assessment and valuation of renewable energy generation facilities in Nebraska, contact David Levy or Garner Girthoffer.