SB 1417
An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, providing for sustainable aviation fuel tax credit.
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Sign in to take action- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Bill overview
This bill creates a tax credit for sustainable aviation fuel (SAF) produced in Pennsylvania. To qualify, a taxpayer must own and operate a facility that manufactures SAF, meet specific job creation and investment requirements, and use feedstocks sourced from Pennsylvania or neighboring states. The tax credit is tiered, offering a base rate per gallon of SAF produced and additional incentives for using Pennsylvania-sourced feedstocks and achieving a significant reduction in greenhouse gas emissions compared to conventional jet fuel. The bill also establishes guidelines for applying for and utilizing the tax credit, including a reporting requirement for the General Assembly.
Key provisions
- Establishes a tax credit of at least $1 per gallon for sustainable aviation fuel produced in Pennsylvania.
- Defines ‘qualified taxpayer’ based on facility ownership, investment, job creation, and feedstock sourcing criteria.
- Provides an additional 25¢ per gallon tax credit for using feedstocks sourced within Pennsylvania or contiguous states.
- Offers a further 25¢ per gallon tax credit for SAF that reduces greenhouse gas emissions by at least 30% compared to conventional jet fuel.
- Sets a maximum tax credit amount of $1.50 per gallon.
- Requires facilities to meet specific construction standards, including using Steel Products Procurement Act.
- Establishes a process for selling or assigning tax credits.
- Mandates an annual report to the General Assembly summarizing the effectiveness of the tax credit program.
Who is affected
- Aviation fuel producers
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