Bill > S04065

This bill establishes a tax credit program for sustainable aviation fuel (SAF) producers in New York State, designed to incentivize the production and use of environmentally-friendly aviation fuel. The tax credit starts at one dollar per gallon of sustainable aviation fuel purchased in the state for flights departing from New York, with an additional two cents per gallon for each percentage point of carbon dioxide emissions reduction above 50%, up to a maximum of two dollars per gallon. To qualify, SAF must meet specific criteria, including being derived from biomass, waste streams, or renewable energy sources, not using palm or petroleum derivatives, and achieving at least a 50% lifecycle greenhouse gas emissions reduction compared to traditional jet fuel. Producers must obtain a certificate from the New York State Energy Research and Development Authority (NYSERDA) and report monthly fuel sales. The total tax credits are capped at $30 million annually, and the credit will be available for taxable years beginning on or after January 1, 2025. Eligible taxpayers can claim the credit against various state taxes, and if the credit exceeds their tax liability, the excess can be refunded. The bill aims to promote cleaner aviation fuel production and reduce carbon emissions in the transportation sector.

Agriculture and Natural Resources, Budget and Finance, Transportation and Infrastructure

https://www.nysenate.gov/legislation/bills/2025/S4065