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LB 1021

Change provisions related to penalties, proceeds, and distributed revenue of the nameplate capacity tax

109th Legislature (2025-2026) Introduced by Teresa Ibach

LB 1021 restructures Nebraska's nameplate capacity tax penalties, revenue distribution, and fund allocations affecting power generation facilities and state budget priorities.

Notice of hearing for February 19, 2026
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Bill Summary · LB 1021

Legislative bill overview

LB 1021 modifies Nebraska's nameplate capacity tax—a tax imposed on electrical generation facilities based on their maximum power output capacity. The bill changes how penalties are assessed for non-compliance, alters how tax proceeds are distributed, and adjusts the revenue allocation mechanisms among state funds and programs.

Why is this important

The nameplate capacity tax generates revenue for state energy programs and infrastructure. Changes to penalty structures, revenue distribution, and fund allocation directly affect how much money flows to specific state priorities, influence power generation facilities' operating costs, and shape incentives for energy development in Nebraska.

Potential points of contention

  • Industry compliance costs: Stricter or restructured penalties could increase operational expenses for power generators, potentially raising electricity rates for consumers
  • Fund allocation shifts: Redistributing tax revenue between programs creates winners and losers among competing state priorities (schools, infrastructure, environmental programs, etc.)
  • Tax burden fairness: Changes may shift tax incidence differently across utility types (renewable vs. fossil fuel), affecting competitive dynamics in Nebraska's energy market

Compiled from official sources — confirm details with the bill’s official record.

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