Nebraska Gov. Jim Pillen has signed into law the establishment of a production tax credit for sustainable aviation fuel (SAF) in Nebraska.

The SAF tax credit (LB937) will provide a $0.75 per gallon tax credit for the production of aviation fuel that reduces lifecycle emissions by at least 50 percent, which may be calculated based on the most recent version of Argonne National Laboratory’s GREET model.

“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.