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SAF tax credit bill signed into law in Nebraska

Nebraska’s Governor recently signed a bill to establish the first major sustainable aviation fuel production tax credit in the Midwest.

Reid Wagner, executive director of the Nebraska Ethanol Board, says, “The tax credit, as a base credit, offers $.75 per gallon once you achieve a 50% carbon intensity reduction under the Argonne National Labs GREET model.”

Wagner says 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.

He tells Brownfield the credit is limited to nearly $500,000 per fiscal year. “The company can claim that for five years of the program. We can see where that goes in the future, but for right now it’s also a great qualitative measure of the excitement around sustainable aviation fuel.”

The Biden administration has outlined a goal of three billion gallons of sustainable aviation fuel production by 2030. LanzaJet, a sustainable fuels technology company headquartered in Illinois, recently announced it has raised $100 million for future sustainable aviation fuel production projects.