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  • Writer's pictureRon Kotrba

Illinois governor signs $1.50 per gallon SAF purchase credit into law

O'Hare International Airport in Chicago, Illinois

Illinois Gov. J.B. Pritzker signed a bill in early February that provides a sustainable aviation fuel (SAF) purchase credit for 10 years.

Senate Bill 2951 cleared the Illinois legislature Jan. 10 and was signed by Pritzker Feb. 3.

Beginning June 1, 2023, through Jan. 1, 2033, the new law gives a $1.50 per gallon tax credit for SAF sold to or used by an air carrier in Illinois.

SAF purchase credit certification provided by the air carrier may be used to satisfy the retailer’s or serviceman’s liability on aviation fuel under the Retailers’ Occupation Tax Act or Service Occupation Tax Act for the credit claimed.

The SAF purchased must meet ASTM D7566 or ASTM D1655 Annex 1 specifications.

All SAF must achieve at least a 50 percent reduction in greenhouse-gas emissions in order to qualify for the credit and cannot be made from any palm derivatives.

To qualify for the SAF purchase credit after June 1, 2028, the SAF must be derived from domestic biomass resources.

“Until July 1, 2033, on an annual basis, no credit may be earned by an air carrier for soybean oil-derived sustainable aviation fuel once air carriers in this state have collectively purchased sustainable aviation fuel containing 10 million gallons of soybean-oil feedstock,” the law states.

Click here to read the full text of the bill.



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