Today, Nebraska Gov. Jim Pillen signed into law LB937, which includes the establishment of a production tax credit for sustainable aviation fuel (SAF) in Nebraska. The Nebraska Ethanol Board (NEB) welcomes the passage and signage of LB937, which was introduced by Sen. Eliot Bostar and was amended to include the SAF tax credit created by Sen. George Dungan’s LB1072.
“We are excited and encouraged by this landmark SAF legislation, and Gov. Pillen’s signing of the bill,” Nebraska Ethanol Board (NEB) Executive Director Reid Wagner said. “This bill creates a first-in-the-Midwest tax credit for SAF to be produced right here in Nebraska. We thank Sens. Dungan and Bostar for helping develop SAF production, which represents a tremendous opportunity for our state moving forward.”
Ethanol and oils from corn and soybean processing serve as low-carbon, low-cost feedstocks for the production of SAF, which can reduce emissions by more than 50% compared to conventional jet fuel. LB937 establishes an income tax credit for the production of SAF beginning 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.”
