Illinois brings in $1.5 per gallon credit for using SAF
Illinois has brought in a $1.5 per gallon credit for air carriers buying Sustainable Aviation Fuel (SAF) which is used in the state.
State Bill 2951 was past by both Illinois houses January 10th 2023. The Illinois credit is for buyers of SAF. It is independent from the SAF Tax Credit, for producers, part of the Federal Inflation Reduction Act of 2022.
The SAF credits will apply from June 1, 2023 to January 1, 2033.
“Support for SAF is growing not only at the federal level, but also at the state level. The Illinois House and Senate recently passed SB 2951 which contains a SAF incentive of $1.50 per gallon for airlines that purchase SAF,” said Dr. Patrick Gruber, CEO of Gevo, in a company update.
Until June 1, 2028, the SAF can be from any feedstock – except palm oil. From June 2028 it needs to be from domestic biomass resources. There is a restriction on the use of SAF from soybean.
“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 10,000,000 gallons of soybean oil feedstock,” says the Bill.
The Illinois full Bill is here. The SAF part is 35 ILCS 105/3-87 starting on page 133.