Off-Road-Use Gas Tax Refund Program

Refunds of 22.35 cents per gallon of the state gasoline or E-10 Unleaded tax are available from the Nebraska Department of Revenue.  Refunds are granted to qualified purchasers who buy fuel in Nebraska, pay the state tax at the pump and use the fuel off of public roads.

What fuel qualifies for the refund?
All gasoline or E-10 Unleaded used for agricultural, quarrying, industrial or other non-highway purposes.  The fuel must be used exclusively in qualified vehicles and must not be used to propel motor vehicles upon public highways.

Who can file for the refund?
Every Nebraska individual, corporation, partnership or limited liability company may claim a refundable credit for non-highway use of gasoline or E-10 Unleaded.  To qualify for a credit one must have a separate storage container of 40 gallons or more which must be labeled “tax credit gasoline” or “non-highway use motor vehicle fuels” in large, legible letters.  To qualify for a credit, one must make at least one purchase of 40 gallons or more of non-highway use gasoline during the calendar for which a credit is claimed.

How does one file?
To receive the refund, a Nebraska Non-highway Use Motor Vehicle Fuels Credit Computation or Form 4136N must be filed with one’s state income tax return.  Fiscal year filers must file this form for the calendar in which their fiscal year begins.  Eligible taxpayers may file a claim each month for tax credit motor vehicle fuels purchased during the preceding month if they are entitled to an annual tax credit in excess of $60,000, based on claims filed for the preceding year.

For More Information:
Contact the Nebraska Ethanol Board at 402-471-2941 or the Nebraska Department of Revenue, Division of Motor Fuels at 402-471-5730.