Higher Blend Tax Credit FAQ
This guidance document is advisory in nature but is binding on the Nebraska Department of Revenue (DOR) until amended. A guidance document does not include internal procedural documents that only affect the internal operations of DOR and does not impose additional requirements or penalties on regulated parties or include confidential information or rules and regulations made in accordance with the Administrative Procedure Act. If you believe that this guidance document imposes additional requirements or penalties on regulated parties, you may request a review of the document.
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While the HBTC-A credit application form may still be modified for any recent legislative changes, we are welcoming applications for the 2024 calendar year on the fuel sold in 2023. 2024 credit applications may be submitted with the forms currently available on the website via the secure file sharing system located on the Nebraska Higher Blend Tax Credit Act page on DOR’s website and . We do not currently anticipate changes to the documentation requirements and we will process the 2024 applications with the correct tax credit statutorily allowed so that applicants will NOT need to amend/modify their 2024 application to comply with recent legislative changes. Thus, we will adjust the tax credits claimed on the HBTC-A application to the correct rate (at processing time) which will be reflected on the HBTC Certificate.
The retail dealer is a person engaged in the business of storing and dispensing motor fuel from a motor fuel pump for sale on a retail basis.
Yes, if you store and dispense motor fuel from a motor fuel pump for sale on a retail basis.
No, because you are not storing, dispensing, and selling the motor fuel from your retail motor fuel site.
E-10 does not qualify for the credit. Ethanol blends of over E-15, E-25, and E-30 that are not specifically listed on the Schedule I should be reported as the closest lower blend. For example, E-20 should be included as E-15, and E-40 should be included as E-30. Ethanol blends above 51% by volume of ethanol should be reported as E-85.
No, only higher ethanol blends sold through a pump at a Nebraska retail site qualify for the credit.
No, only one retail dealer can file an application for a retail site.
Yes, an application may be filed each tax year the retail dealer sold higher ethanol blends of gasoline in the prior calendar year, or until the annual limitation for a tax year has been met.
No, a separate application must be filed for each taxable year.
When the Nebraska Department of Revenue approves and certifies credits you will receive a copy of the approved application, with the total number of HBTCs issued and your certificate number, through ShareFile or secure email.
The credit is refundable and may be claimed on an Income Tax, Premium Tax, or Financial Institution Tax return starting with the 2022 tax year. The return does not need to reflect any income tax liability owed by the taxpayer to receive the refundable credit. The credit may be claimed on the Form 1040N, 1120N, 1120-SN, 1041N, 1120NF, and the Department of Insurance Premium Tax Return.
The annual limit for calendar year 2022 is $2 million. For calendar year 2023 and each calendar year thereafter, the annual limit is calculated by taking the annual limit from the prior calendar year and multiplying that amount by either;
(a) two hundred percent if the amount of tax credits approved in the prior calendar year exceeded ninety percent of the annual limit applicable to that calendar year; or
(b) one hundred percent if the amount of tax credits approved in the prior calendar year did not exceed ninety percent of the annual limit applicable to that calendar year.
In no case shall the annual limit on tax credits exceed $4 million dollars.
Enter the Nebraska sales tax permit number assigned to each location.
If you have an unmanned fueling station that does not have a Nebraska sales tax permit number, enter the word "unmanned."
