NE 01-22-1 Sales and Use Tax 2022-01-31

Is Nebraska Revenue Ruling 01-08-1 on the sales and use tax exemption for Community-Based Energy Development project materials still in effect?

Short answer: No -- it has been withdrawn. Revenue Ruling 01-22-1 (issued January 31, 2022) formally rescinds Revenue Ruling 01-08-1, 'Sales and Use Tax Exemption for Qualified Materials for Use in a Community-Based Energy Development Project,' which had been issued January 16, 2008. The one-page rescinding ruling gives no substitute guidance and states no reason, so the earlier ruling can no longer be relied on. If you are evaluating the sales and use tax treatment of materials for a community-based (C-BED) renewable energy project, look to the current Nebraska statutes and regulations or seek a current determination rather than the withdrawn 01-08-1.

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This page answers the general question as of 2022. Ezel answers yours, under current Nebraska tax law, with citations.

Disclaimer: This is an official Revenue Ruling of the Nebraska Department of Revenue, a guidance document stating the Department's interpretation of how Nebraska tax law applies. Each Nebraska guidance document carries the notice that it 'is advisory in nature but is binding on the Nebraska Department of Revenue until amended.' Unlike a private letter ruling, a Revenue Ruling is a general statement of Department policy rather than advice to a single taxpayer, but it can be amended, superseded, or made obsolete by a later ruling or a change in statute or regulation, many rulings in this series have been rescinded or superseded, so confirm it is still in effect before relying on it. Nebraska's local option sales and use taxes are administered by the Department, not self-collected by home-rule cities. This summary is informational only and is not legal or tax advice. Consult a licensed Nebraska tax professional about your situation.

About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page as a PDF) is the authoritative source for any reliance.

View original ruling (PDF)

Plain-English summary

This is a housekeeping ruling. In one page, the Nebraska Department of Revenue rescinds an older ruling: Revenue Ruling 01-08-1, "Sales and Use Tax Exemption for Qualified Materials for Use in a Community-Based Energy Development Project," which had been issued January 16, 2008.

A "Community-Based Energy Development" (C-BED) project is a locally owned renewable energy project (typically wind). The withdrawn 01-08-1 had addressed when materials purchased for such a project were exempt from Nebraska sales and use tax. This 2022 ruling does not restate, replace, or explain that guidance -- it simply withdraws it and gives no reason. As a result, 01-08-1 is no longer available as guidance you can rely on.

What this means for you

Developers and contractors on community renewable energy projects

Do not rely on the withdrawn Revenue Ruling 01-08-1 for the sales and use tax treatment of your project materials. Because this rescinding ruling supplies no replacement guidance, determine the current treatment from Nebraska's sales and use tax statutes and regulations, or request a current written determination from the Department for your specific facts.

Anyone citing older Nebraska guidance

This is a reminder that rulings in this series are regularly rescinded. Always confirm a Nebraska Revenue Ruling is still in effect before relying on it -- an older ruling may have been quietly withdrawn by a one-line ruling like this one.

Common questions

Q: What does Revenue Ruling 01-22-1 actually do?
A: It rescinds Revenue Ruling 01-08-1, "Sales and Use Tax Exemption for Qualified Materials for Use in a Community-Based Energy Development Project" (issued January 16, 2008). Nothing else.

Q: Does it explain why 01-08-1 was withdrawn or give new guidance?
A: No. The ruling states no reason and provides no substitute guidance.

Q: Can I still rely on Revenue Ruling 01-08-1?
A: No. Once rescinded, it can no longer be relied on. Use current Nebraska statutes and regulations, or seek a current determination, for the sales and use tax treatment of C-BED project materials.

Citations and references

Rescinds: Revenue Ruling 01-08-1, "Sales and Use Tax Exemption for Qualified Materials for Use in a Community-Based Energy Development Project," issued January 16, 2008.
No statutes are cited in this rescinding ruling.

Source

Original ruling text

Revenue Ruling 01-22-1
Nebraska Sales and Use Tax

January 31, 2022

Revenue Ruling Rescinded
The following revenue ruling is hereby rescinded:
01-08-1 — Sales and Use Tax Exemption for Qualified Materials for Use in a
Community-Based Energy Development Project, issued January 16, 2008.

APPROVED:
Tony Fulton
Tax Commissioner
January 31, 2022

Nebraska Department of Revenue, PO Box 94818, Lincoln, Nebraska 68509-4818

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