The proposed bill amends the Sustainable Aviation Fuel Tax Credit Act by establishing the credit as 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, providing greater flexibility and potential financial benefits to eligible taxpayers. The bill also harmonizes various provisions within the tax code to ensure consistency and emphasizes the credit's refundable nature and its availability without annual caps, aiming to promote the use of sustainable aviation fuel and support environmental goals and economic growth in Nebraska.

Additionally, the bill modifies the Nebraska Revenue Act to introduce and adjust tax credits for beneficiaries of estates and trusts, as well as corporate taxpayers. It establishes a refundable income tax credit under the Beginning Farmer Tax Credit Act for all taxable years starting on or after January 1, 2001, and outlines tax filing requirements for nonresident beneficiaries. The bill clarifies definitions related to trusts and modifies tax credits for corporate taxpayers, including the addition of the Sustainable Aviation Fuel Tax Credit Act and the introduction of a refundable credit for producers of sustainable aviation fuel, effective for taxable years beginning on or after January 1, 2028. It also repeals certain existing sections to streamline the tax credit framework.

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