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LB 815

Provide for a tax on diesel fuels, change provisions relating to refunds for motor fuel taxes, the petroleum release remedial action fee, and the Motor Fuel Tax Enforcement and Collection Cash Fund, change and eliminate provisions of the Ethanol Development Act, and eliminate the Ethanol Production Incentive Cash Fund

109th Legislature (2025-2026) Introduced by Tom Brandt

Nebraska bill implementing diesel fuel tax while eliminating ethanol production incentives and restructuring motor fuel tax refunds, affecting agriculture and transportation sectors.

Presented to Governor on April 10, 2026
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WeVote Research Nonpartisan
Bill Summary · LB 815

Legislative bill overview

LB 815 proposes to implement a new tax on diesel fuels in Nebraska while simultaneously restructuring the state's motor fuel tax refund system and dismantling long-standing ethanol incentive programs. The bill would eliminate provisions of the Ethanol Development Act and dissolve the Ethanol Production Incentive Cash Fund, representing a significant shift away from ethanol subsidies that have been a cornerstone of Nebraska agricultural policy.

Why is this important

Nebraska is a major corn and ethanol-producing state, so eliminating ethanol incentives could substantially impact agricultural economics, farm revenue streams, and related industries. The diesel tax would increase transportation costs for trucking, farming operations, and other diesel-dependent sectors, potentially raising consumer prices for goods. The changes to fuel tax refund provisions could affect various industries that currently benefit from tax relief mechanisms.

Potential points of contention

  • Agricultural community opposition: Ethanol producers, corn farmers, and agricultural organizations will likely strongly oppose eliminating decades-old incentive programs that support their industry
  • Economic impact on rural Nebraska: Removal of ethanol subsidies could reduce investment, profitability, and employment in rural communities dependent on ethanol production facilities
  • Diesel tax burden: Trucking companies, farmers, and construction firms may oppose the new diesel tax as it increases operating costs and could be passed to consumers
  • Refund mechanism changes: Unclear what specific refund changes are proposed, but any modifications could disadvantage current beneficiaries (agricultural operations, commercial users, etc.)

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

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