Nebraska Gov. Jim Pillen on April 24 signed a legislative package that includes a tax credit to support the production of sustainable aviation fuel (SAF) within the state. &nbsp;The tax credit applies to eligible SAF that achieves at least a 50% greenhouse gas (GHG) emissions reduction when compared to fossil-based aviation fuel.&nbsp;According to the text of the bill, the GHG reduction can be calculated using either the most recent version of Argonne National Laboratory’s GREET model or the lifecycle methodology for SAF adopted by the International Civil Aviation Organization.&nbsp;The tax credit is set at 75 cents per gallon for SAF that meets the 50% GHG reduction threshold, plus an applicable supplementary amount, which is defined as the amount equal to 1 cent for each percentage point by which the lifecycle GHG emissions reduction percentage of the SAF exceeds 50%. Eligible SAF producers would be able to claim the tax credit for five years.&nbsp;Legislation to create the SAF tax credit was originally introduced by state Sen. George Dungan on Jan. 8, 2024. The bill was later incorporated into a larger legislative package, which was passed by the Nebraska legislature on April 18 by a vote of 45 to zero, with four lawmakers present but not voting. Pillen signed the bill on April 24.&nbsp;Growth Energy is celebrating the establishment of the SAF tax credit. “We applaud Governor Pillen, Senator Dungan, Senator Bostar, and all the biofuel champions in Nebraska who worked hard to advance this exciting legislation,” said Emily Skor, CEO of Growth Energy. “These incentives promise to propel Nebraska into a leadership position on SAF, which is the single most promising new market for low-carbon biofuels. With the right incentives and the best available science, as afforded by Argonne’s GREET model, this approach promises to fast-track investments in low-carbon aviation that will benefit our climate, our economy, and our rural communities.”Renewable Fuels Nebraska is also applauding the new tax credit. “Three cheers for the Nebraska Legislature and their crucial step towards encouraging the next big wave in homegrown American energy to hit right here at home: Sustainable aviation fuel,” said Dawn Caldwell, executive director of RFN.&nbsp;“Studies have shown that the global market for SAF will grow&nbsp;<a href="https://renewablefuelsne.us16.list-manage.com/track/click?u=ce22c686735cb79ba8b19c2c1&amp;id=b8500b9d96&amp;e=3943e937a6">by 100-fold within the next 10 years</a>—from $1.29 billion last year to more than $131.12 billion by 2033. And by passing this commonsense policy, our lawmakers can give our farmers, ranchers, and producers, a real opportunity to capture a large part of that market and ensure that every Nebraskan benefits.“We are grateful for Sen. George Dungan's leadership and advocacy, and we thank all our state legislators for successfully passing this legislation,” Caldwell continued.A full copy of the bill, SB937, is available on the Nebraska Legislature <a href="https://nebraskalegislature.gov/bills/view_bill.php?DocumentID=54875">website</a>.&nbsp;&nbsp;

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Nebraska Gov. Jim Pillen on April 24 signed a legislative package that includes a tax credit to support the production of SAF within the state.  The tax credit applies to eligible SAF that achieves at least a 50% GHG emissions reduction.

Nebraska governor signs bill creating SAF tax credit

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