Pillen signs legislation creating tax credit for sustainable aviation fuel

Pillen signs legislation creating tax credit for sustainable aviation fuel
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April 25th, 2024 | Bryce Doeschot

Nebraska Governor Jim Pillen signed LB937 into law, marking a milestone in the state’s support for sustainable aviation fuel (SAF).

Introduced by Sen. Eliot Bostar and amended to include the SAF tax credit from Sen. George Dungan’s LB1072, this legislation establishes a production tax credit for SAF in Nebraska. The Nebraska Ethanol Board (NEB) applauded the passage and enactment of LB937.

“We are excited and encouraged by this landmark SAF legislation, and Gov. Pillen’s signing of the bill,” said Reid Wagner, Executive Director of the Nebraska Ethanol Board. “This bill creates a first-in-the-Midwest tax credit for SAF to be produced right here in Nebraska.”

Ethanol and oils derived from corn and soybean processing can be an input for SAF production, offering emission reductions exceeding 50% compared to conventional jet fuel. LB937 establishes an income tax credit for SAF production starting in 2027.

“The potential of the SAF market in the coming years could be enormous,” Wagner said. “LB937 marks an important step in realizing that opportunity. As Nebraska looks to the future, this bill ensures our state is in prime position to be a leader in the SAF market.”

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