Nebraska governor signs landmark SAF legislation into law

Nebraska Gov. Jim Pillen has signed into law LB 937, which includes establishing a production tax credit for sustainable aviation fuel (NAF) in Nebraska.

The legislation was introduced by Sen. Eliot Bostar and was amended to include the SAF tax credit created by Sen. George Dungan’s LB 1072.

The passing of the law was hailed as a success by The Nebraska Ethanol Board (NEB).

The organization’s Executive Director Reid Wagner says the bill will create 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.”

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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 percent compared to conventional jet fuel, according to NEB. 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 says. “LB 937 marks an important step in realizing that opportunity. As Nebraska looks to the future, this bill ensures our state is in [a] prime position to be a leader in the SAF market.”