Nebraska Launches Alternative Fuel Vehicle Rebate Program


The Nebraska Energy Office has launched the Clean-burning Motor Fuel Development Rebate program, which will provide state rebates for conversions to, or purchases of, alternative-fueled vehicles.

The program is funded under L.B.581, passed by the Nebraska Unicameral in May 2015, and the Nebraska Energy Office is tasked with administering it.

The $500,000 rebate program defines a clean-burning motor vehicle fuel as a hydrogen fuel cell, compressed natural gas (CNG), liquefied natural gas or propane autogas. Rebates for residential CNG dispensing equipment are also offered.

“We have received much interest in this program with dealers and others patiently waiting for the guidelines to be issued,” notes David Bracht, director of the Nebraska Energy Office. “We expect the funds to be expended quickly, and encourage people to carefully read the guidelines and ensure their applications are complete to avoid any delay in processing.”

According to the Nebraska Energy Office, conversions will be eligible for a rebate of up to 50% of the cost of a conversion system/kit, or $4,500, whichever is less. The rebates for vehicle purchases is based on the cost of the fuel tank, fuel lines and exhaust system and is the same amount as the conversion rebate. New fuel dispensing equipment will be eligible for up to 50% of the cost, or $2,500, whichever is less.

Rebates will not be given to purchases that were made prior to Jan. 4 or do not meet the guidelines. Information about the program, as well as the application forms, are available here.

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