Nebraska Clean-burning Motor Fuel Development Rebate Program

The Nebraska Energy Office Announces the Nebraska Clean-burning Motor Fuel Development Rebate Program

Rebates for Conversions, New Vehicle Purchases and Fuel Dispensing Equipment

The recently launched Clean-burning Motor Fuel Development Rebate program will provide rebates on qualified conversions of motor vehicles to run on clean-burning motor fuels, purchases of vehicles that originally were designed to run on clean-burning motor fuels, and equipment to dispense the clean-burning fuels. The rebate program is funded under Legislative Bill 581 passed by the Nebraska Unicameral in May 2015. The Nebraska Energy Office is tasked with administering the program.


The rebate program defines clean-burning motor vehicle fuel for conversions and purchases of new vehicles as a hydrogen fuel cell, compressed natural gas (CNG), liquefied natural gas, or liquefied petroleum gas. 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,” said 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.”


Conversions will be eligible for a rebate of up to 50 percent 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 percent of the cost, or $2,500, whichever is less.


Rebates will not be given to purchases that were made prior to January 4, 2016 or do not meet the guidelines. Information about the program, as well as the application forms are available at

Joe Hurley
-- Fuel Solutions Specialist