Nebraska governor signs Nebraska Biodiesel Tax Credit Act into law

In Nebraska, Gov. Jim Pillen (R-NE) signed into law legislation promoting the sale and use of biodiesel in Nebraska. The bill, LB 727, provides retail tax incentives for the sale of biodiesel at fuel retailer locations throughout the state adding value to Nebraska soybean farmers while promoting continued growth of the burgeoning renewable fuel industry.

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.

The proposal was introduced by Sen. Tom Brandt of Plymouth and amended to LB 727 which was shepherded through Nebraska’s unicameral legislature by Sen. Lou Ann Linehan of Elkhorn. The biodiesel proposal received overwhelming support from Nebraska’s agriculture industry, biodiesel producers and fuel marketers. The legislation ultimately passed unanimously by the Nebraska Senate.