Nebraska does not currently offer any incentive programs for the conversion to solar power. They do have a state loan program available. Please refer to the below information on federal programs to reduce costs.
Summary of Nebraska Incentive Programs
•Federal Tax Credit 30%
Federal Incentives
Federal Investment Tax Credit (ITC)
Commercial solar energy systems can take advantage of the Federal Investment Tax Credit 48E, which provides a tax credit of 30% of the total cost of the system, provided prevailing wage and apprenticeship requirements are met.
Residential systems can no longer claim any federal solar tax credit, as the One Big Beautiful Bill eliminated it for systems installed after January 1st, 2026.
Commercial Depreciation
Commercial asset owners can write off 100% of a project’s value in depreciation in the first year. The One Big Beautiful Bill reinstated the 100% bonus depreciation, while simultaneously eliminating the Modified Accelerated Cost Recovery System (MACRS) that previously depreciated solar energy systems over 5 years.
The depreciable basis of a project is reduced by half of the ITC value when combined with the 30% ITC. Here’s a quick example:
- Project cost = $800,000
- 30% credit = $240,000
- Reduced depreciation basis: $800,000 – ($240,000 / 2) = $680,000
A company’s tax rate is then taken into account to calculate the exact amount they’re able to write off. .
Additional tax incentives
Many public utility companies around the country provide rebates for installing solar systems. However, due to the federal programs Residential Energy Conservation Subsidy Exclusion (Corporate) and Residential Energy Conservation Subsidy Exclusion (Personal), these subsidies are 100% non-taxable. Businesses are provided with a 50% bonus depreciation schedule for solar property under the Modified Accelerated Cost-Recovery System (MACRS) + Bonus Depreciation (2008-2009). Finally, there is also a program named Renewable Energy Production Incentive (REPI) which provides for an incentive of 2.1¢ per kWh for qualifying governments, municipal utilities, and native corporations.
Financing Programs
CREBS (Clean Renewable Energy Bonds) are issued by qualifying governments and utilities to finance solar energy projects, and buyers are then paid back only the principal amount, also receiving tax credits in lieu of interest. FHA and VA both offer Energy-Efficient Mortgages, allowing borrowers to include up to 100% of the system costs in their loan. QECBS (Qualified Energy Conservation Bonds) differ from CREBS only in that they are allocated specifically for large local governments with populations over 100,000. The U.S. Department of Energy – Loan Guarantee Program targets businesses, state and local governments, and institutions with project costs over $25 million. Similarly, USDA – Rural Energy for America Program (REAP) Loan Guarantee provides loans up to $25 million for business and agricultural use.
Additional information can be found by visiting the DSIRE:Database of State Incentives for Renewables & Efficiency.
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