This 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 removes previous limitations on the number of years the credit can be claimed and the annual amount available, thereby enhancing flexibility and potential benefits for taxpayers involved in sustainable aviation fuel production. Additionally, the bill harmonizes various provisions within the tax code and repeals original sections related to the Sustainable Aviation Fuel Tax Credit, ensuring its recognition alongside other tax credits.

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 application process to allow approvals based on the order received. It also eliminates the previous limit on the number of years a producer could claim the credit and deletes the nonrefundable designation, making it fully refundable. The bill further clarifies tax obligations for nonresident beneficiaries of estates and trusts and addresses the definitions of simple and complex trusts.

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