The proposed bill amends the Sustainable Aviation Fuel Tax Credit Act by transforming the tax credit into a refundable credit, allowing taxpayers to receive refunds if the credit exceeds their tax liability. It eliminates previous restrictions on the number of years the credit can be claimed and the annual amount available, thereby enhancing flexibility for taxpayers involved in sustainable aviation fuel production. Additionally, the bill harmonizes various provisions within the tax code and repeals original sections of the Sustainable Aviation Fuel Tax Credit Act, integrating the credit into the broader Nebraska Revenue Act.

Moreover, the bill introduces a refundable income tax credit for producers of sustainable aviation fuel, effective for taxable years beginning on or after January 1, 2028. This credit is based on the gallons of sustainable aviation fuel sold or used in qualified mixtures and modifies the previous nonrefundable status of the credit. It also streamlines the application process, ensuring that applications are processed in the order received and requiring producers to attach their tax credit certification to their tax returns. The bill repeals certain existing sections of the Revised Statutes Cumulative Supplement, 2024, to facilitate these changes.

Statutes affected:
Introduced: 77-2715.07, 77-2717, 77-2734.03, 77-7019