Higher Blend Tax Credit FAQ
Who is the retail dealer?
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.
Am I a retail dealer if I operate a consigned location?
Yes, if you store and dispense motor fuel from a motor fuel pump for sale on a retail basis.
Am I a retail dealer if I provide the fuel that is sold on a consignment basis by a consignee?
No, because you are not storing, dispensing, and selling the motor fuel from your retail motor fuel site.
Does an ethanol blend other than E-15, E-25, E-30, or E-85 qualify for the credit?
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.
Do tank wagon bulk deliveries of higher ethanol blends qualify for the credit?
No, only higher ethanol blends sold through a pump at a Nebraska retail site qualify for the credit.
Can two people file an application for the same retail site?
No, only one retail dealer can file an application for a retail site.
Can I apply for the HBTC each taxable year?
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.
Can I apply for the HBTC for multiple years on one application?
No, a separate application must be filed for each taxable year.
How will I receive notification that my application has been approved?
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.
How do I use the credit?
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.
How many credits are available each year?
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.
What do I enter as my Nebraska Site ID Number in column A of the Schedule I?
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."
