LINCOLN, Neb. (KCAU) — Nebraska retailers who sell higher ethanol blends can now apply for tax credits.
The tax credits are going to be available as part of a law, the Nebraska Higher Blend Tax Credit Act, which was passed in the state legislature and signed by Nebraska Governor Ricketts in April.
The blends must be of a 15% by volume of ethanol or higher, the bill states. Retailers are able to get refundable tax credits of five cents per gallon of E-15 sold and eight cents per gallon of E-25 blend or higher in a year. The tax credits can then be used against any state income tax. For 2022, the limit of tax credits available is $2 million. It’ll then be adjusted for the years after.
“Utilizing ethanol should be a centerpiece of our national strategy to lower gas prices,” Ricketts said. “Ethanol saves drivers money at the pump, is better for the environment, and creates opportunities for farm families here in Nebraska. As a state, we’re doing our part to grow U.S. energy production by encouraging sales of renewable fuel.”
In Nebraska, E-85 is available at 124 fueling stations. E-15 is available at 112 fueling stations, Ricketts said in a release.
Reid Wagner, the administrator of the Nebraska Ethanol Board, said that ethanol is helping some pay other bills
“While there are many other benefits of the fuel, the cost savings are what has motivated the government to make real changes quickly,” Wagner said. “The Biden Administration continues to allow E-15 to be used throughout the summer, and now, the Nebraska Legislature is rewarding retailers for providing healthier, lower cost fuel options for their constituents. We know the continued relief ethanol provides economically and environmentally and will continue sharing that message until higher ethanol blends are easily accessible to everyone.”
Bosselman Enterprises in Grand Island was an early adopter of E-15 at its Pump and Pantry locations across the state. Bosselman Enterprises Chief Operating Officer and Nebraska Ethanol Board Secretary Randy Gard said that he is excited about the bill as a retailer.
“This is a win for everybody…retailers, legislators, farmers and ranchers, and especially users of ethanol who support Nebraska’s economy, help the environment, and save money every time they fill up.”
The Nebraska Department of Revenue is administering the program. Applications for the credits began Monday, August 1. For more information or to apply, retailers can click here.