Nebraska Gov. Jim Pillen has signed into law legislation promoting the sale and use of biodiesel.
Legislative bill 727 gives retail tax incentives at fuel retailer locations in Nebraska.
LB 727, 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.”
Nebraska joins Illinois, Iowa, and Missouri as states begin to pass legislation to incentivise the sale of biodiesel.
The Nebraska governor’s office noted that these incentives will help grow the overall diesel market in the Midwest by over 300 million gallons.
The proposal received overwhelming support from Nebraska’s agriculture industry, biodiesel producers and fuel marketers. The legislation ultimately passed unanimously by the Nebraska Senate.
“This legislation recognizes the impact biodiesel has on the demand for soybean oil,” said Courtney Lawrenson, Clean Fuels Alliance America Governing Board member and AGP vice president of oils and energy. “AGP has long recognized the steady growth of the soybean processing industry with plans to expand feedstock production capacity in David City and applauds lawmakers for solidifying Nebraska’s leadership role in the industry.”
Nebraska is the leader in soybean production, which is the plant that can be used to create the alternative fuel type.
In 2022, this industry in Nebraska contributed an estimated $322 million worth of overall value to Nebraska soybeans.
“Passing the Biodiesel Tax Credit Act is a win for Nebraska producers and consumers,” said Lori Luebbe, executive director for the Nebraska Soybean Association. “It reinforces the commitment to making renewable fuels an integral part of our state’s energy portfolio. We appreciate the support of Gov. Jim Pillen, Sen. Tom Brandt, and members of the legislature for ensuring biodiesel is a part of Nebraska’s clean energy solution.”
“We were thrilled to work with our member associations including the Nebraska Soybean Association, AGP and the other organizations who helped build a strong coalition advocating for this legislation while making biodiesel a priority in Nebraska,” said Jeff Earl, director of state regulatory affairs for clean fuels.