Nonhighway Use Motor Vehicle Fuels Credit

Nonhighway Use Motor Vehicle Fuel Credit, is the credit for a portion of the Nebraska tax paid in this program.

The Nebraska Nonhighway Use Motor Vehicle Fuels Tax Program allows taxpayers to apply for a refundable income tax credit of the tax paid on those gallons of motor vehicle fuels (e.g., gasoline, gasohol, or ethanol) used exclusively for the following nonhighway purposes:

Agricultural;
Quarrying;
Industrial; or
Any other nonhighway use.

Storage Facility

Taxpayers must have at least one storage facility or container with a capacity of 40 gallons or more. All storage facilities into which nonhighway use motor vehicle fuels are placed must be labeled with the following in large, legible letters:

Nonhighway Use Motor Vehicle Fuels, or
Tax-Credit Gasoline.

The storage must be a separate storage facility from all other storage of gasoline. Licensed motor vehicles cannot be fueled from this storage facility. The container must also bear the name of the purchaser when the seller does not deliver the motor vehicle fuels to the premises of the purchaser. Purchases. Taxpayers must make at least one purchase of 40 gallons or more of nonhighway use motor vehicle fuels each year to be eligible to receive the income tax credit.

Nonhighway use does not include power-take-offs powered by the main supply tank of a licensed motor vehicle or fuel used in aircraft.

The amount of the credit is calculated at two and one quarter cents per gallon less than the tax rate in effect at the time the fuel was purchased.

This credit does not apply to diesel fuel, kerosene, or compressed fuel (e.g., propane, or compressed natural gas).

Nonhighway use motor vehicle fuels cannot be used in any motor vehicle which is registered or licensed, even if such vehicle is never or infrequently driven on the highways of Nebraska.

Any removal of nonhighway use motor vehicle fuels from storage for use in registered or licensed vehicles will invalidate all claims for tax credits for the entire claim year. In addition, any purchaser who uses nonhighway use motor vehicle fuels in a licensed motor vehicle is subject to an administrative penalty of $1,000 for each violation.

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