Today, the Kentucky SAF Coalition hailed the introduction of SB 313, an act relating to tax credits for sustainable aviation fuel, in the Kentucky General Assembly.
This bill, introduced by Senator Shelley Funke Frommeyer and joined in co-sponsorship by Senator Gex Williams, would create a comprehensive SAF incentive package in the Commonwealth.
- It establishes a 10-year tax credit of $2.50 per gallon of SAF consumed by airlines in Kentucky. This pool of credits would be capped at $10mn annually but would help address the cost of SAF by stacking with federal tax credits.
- It creates a 10-year tax credit for agriculture producers for which a portion of their commodities could be verified to be used in creating SAF. This credit would be available to taxpayers—up to $1mn per year—to aid in Kentucky-specific feedstock development for SAF.
- It develops an enhanced incentive program for SAF-specific production facilities/economic development projects with a minimum capital investment of $100mn in Kentucky. A pool of $25mn would be established to help spur investment in the state to produce SAF.
To read this legislation, visit the General Assembly’s website.