Nebraska Gov. Jim Pillen last week signed legislation promoting the sale and use of biodiesel in the state by providing retail tax incentives for the sale of biodiesel at fuel retailer locations.

Part of an omnibus revenue bill, the Nebraska Biodiesel Tax Credit Act, provides a 14-cent per gallon credit for the sale of biodiesel. The credit is applied to a Nebraska fuel retailer’s income tax liability. Total funding for the program is $5 million.

“We applaud Gov. Pillen for signing legislation that will continue to strengthen the momentum of a growing biodiesel market,” said Donnell Rehagen, CEO for Clean Fuels Alliance America. “Nebraska has responded to the call to decarbonize through this forward-thinking legislation that promotes the production and use of biodiesel, a homegrown fuel from homegrown feedstocks.”

In addition to promoting biodiesel, the legislation helps Nebraska soybean farmers by adding value to their crop. In 2022, the biodiesel industry in Nebraska supported an estimated $322 million worth of overall value to Nebraska soybeans. For a Nebraska farmer with 500 acres, the biodiesel and renewable diesel industry supports about $28,400 to their bottom line.

Nebraska joins Illinois, Iowa and Missouri as states that have recently passed legislation supporting the sale and production of biodiesel. These efforts will help grow the biodiesel market in the Midwest by over 300 million gallons.