The Nebraska Ethanol Board and Renewable Fuels Nebraska applaud Governor Pete Ricketts’ final approval of LB 1107, which took place today on the steps of the Capitol.
Dubbed the great compromise, LB 1107 combined many of the business incentives of LB 720, otherwise known as the ImagiNE Act, with elements of property tax reform for all property owners including ethanol facilities. Critical to the ethanol industry were business tax incentives targeted toward renewable chemical operations which utilize ethanol and byproducts of the ethanol production process to create chemicals that are renewable-based.
“As we continuously seek other uses and opportunities for ethanol, the renewable chemical components of LB 1107 will add incentives for companies involved in renewable chemical processes to co-locate at a Nebraska ethanol facility,” said Roger Berry, Administrator of the Nebraska Ethanol Board. “This has the potential to lead to alternative and additional options for our state’s robust ethanol industry, which already impacts our economy by $5 billion each year.”
Other elements of LB 1107 will allow for tax credits based on future investments and job creation and potentially substantial property tax relief for ethanol facilities.
“Ethanol producers have been through some challenging times lately,” said Troy Bredenkamp, Executive Director for Renewable Fuels Nebraska. “As ethanol producers look to retool and reinvest in their plants, business incentives and property tax relief will influence future investments and upgrades in the Nebraska plant fleet.”
“We thank those in the Nebraska Legislature who persevered to make LB 1107 a reality,” Bredenkamp said. “While LB 1107 is not perfect legislation, it demonstrates collaboration by the Nebraska Legislature to act in the best interest of Nebraskans.”
Both the Nebraska Ethanol Board and Renewable Fuels Nebraska now turn their attention to LR 373, which will be the first comprehensive study of state policy impacting Nebraska’s ethanol in many years. Several policy-related issues will be researched and assessed with potential legislation during next year’s session to address policy impediments to Nebraska’s ethanol industry.