Nebraska Utility Sales Tax Exemption
Nebraska allows businesses to claim a tax exemption if more than 50% of their utility is used or directly consumed in processing, manufacturing, refining, irrigation or farming. Processing or manufacturing is defined as an action or series of actions performed upon tangible personal property, either by hand or machine, which results in that tangible personal property being reduced or transformed into a different state, quality, form, property, or thing.
Nebraska Sales Tax Exemption Certificate
The Exempt Sale Certificate Form 13E is the document that must be filed in Nebraska in order for a business to claim the Utility Sales Tax Exemption.
Energy Study Requirement
In Nebraska, a detailed energy study must be performed to identify the exact percentage of utility that is exempt from sales tax. This includes calculating the annual consumption for each device that is consuming the utility and then distinguishing between production devices and non-production devices.
Eligible Industries in Nebraska
If you don’t see your business on here but think you may qualify, please do not hesitate to reach out to us. A SmartSave specialist can help you identify whether your business may qualify.
- Agriculture / Farming Operations
SmartSave investigates client’s current utility situation, and quickly identifies if the company is eligible to save on its utility sales tax through the exemption.
A SmartSave energy specialist performs an in-depth study at the business location to determine the exact proportion of energy use that is exempt from taxation.
All necessary information is compiled into a report and submitted to the required utility companies and state agencies. SmartSave works hand-in-hand with these entities to ensure that all reports are accurate and compliant with statute.
Once the exemption request is approved, your company receives a refund on the past 2-4 years of overpaid utility sales tax, and stops paying sales tax on all certified production items, generating significant savings for the business each month moving forward.