Nameplate Capacity Tax FAQ
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Yes. All real property continues to be assessed and taxed. Please contact your county assessor to determine how this property is assessed in your county. Actual taxes are based on the tax levy each year and cannot be predetermined.
The landowner is responsible for the real property taxes. While landowners and lessees will frequently designate who is responsible for real property taxes through the terms of the lease, this would be a contractual relationship and does not change the ultimate responsibility of the landowner to ensure that the real property taxes are paid.
It is best to speak to your legal counsel or tax preparer to determine what impact a lease payment would have on your federal income tax.
It is best to speak to your legal counsel or tax preparer to determine what impact a lease payment would have on your federal income tax.
A leasehold value is the right held by the lessee to use and occupy real estate for a stated term under the conditions specified in the lease. Determining leasehold value may not be very useful; however, market rents of adjoining ground (without the renewable energy generation facility) may still be relevant information in determining market value under an income approach. The county assessor determines the leasehold value. A leasehold value is considered real property, and will be taxed like other real property.
The nameplate capacity tax is $3,518 per megawatt. In the first year of operation, the nameplate capacity tax is prorated based on the number of days the renewable energy generation facility is in operation. 100% of the nameplate capacity tax that is remitted to the Nebraska Department of Revenue is distributed to the county treasurer. The tax is further distributed to each political subdivision (for example the schools, fire districts, or community colleges).
As stated in Neb. Rev. Stat. § 77-6201(1): "The purpose of the nameplate capacity tax levied under section 77-6203 is to replace property taxes currently imposed on renewable energy infrastructure and depreciated over a short period of time in a way that causes local budgeting challenges and increases upfront costs for renewable energy developers." The nameplate capacity tax replaces the property tax. The nameplate capacity tax does not replace any other taxes that may be owed.
Real property associated with the renewable energy generation facility is still taxable. Directive 23-3, Assessment of Renewable Energy Generation Facilities, describes what is real property.
Land under any renewable energy generation facility – wind, solar, landfill gas, or biomass – will continue to be classified and valued as if the generation facility did not exist, according to Neb. Rev. Stat. § 77-6203(4). This means land that is currently classified as agricultural and horticultural land will continue to be classified as agricultural and horticultural land.
