Both houses of the Illinois General Assembly on January 10 approved a legislative budget that, in part, creates a $1.50 per gallon tax credit for sustainable aviation fuel (SAF). The law, known as the Invest in Illinois Act, or SB 2951, must now be signed by Illinois Gov. JB Pritzker.
According to the law, the credit will start from June 1, 2023, until January 1, 2033, and will be used in the SAF that is sold or used by an airplane. To qualify for the credit, SAF must achieve a 50 percent reduction in lifetime greenhouse gas (GHG) emissions compared to fossil fuels using the life for the SAF developed by the International Civil Aviation Organization or the latest version of the Argonne National Laboratory’s GREET experiment.
Prior to June 1, 2028, the credit may be claimed for fuels obtained from biological sources, waste materials, renewable sources, or gas Starting June 1, 2028, the fuel must also be obtained from biomass sources in the country. Oil produced from palm feed is not eligible for the credit. The law also includes a provision that says that until July 1, 2033, of each year, an airline will not receive a credit for the SAF obtained from soybean oil at the time it was collected. The SAF transporters in the state have 10 million gallons of soybeans. feed oil.
Additional information, including a complete copy of the law, is available at the Illinois General Assembly website.