Bill > HB296

This bill establishes a nonrefundable tax credit for alternative jet fuel producers and consumers in Kentucky. The bill defines "alternative jet fuel" as a fuel produced in the United States that can be blended with conventional jet fuel without modifying aircraft engines, is derived from various sources like corn, soybean oil, or waste streams, and achieves at least a 50% reduction in greenhouse gas emissions. For taxable years between 2026 and 2031, producers and consumers can claim a credit of $1.50 to $2 per gallon, with a maximum credit of $4 million per taxpayer and a total annual credit cap of $20 million. Taxpayers can claim the credit for either producing or blending alternative jet fuel, but not both, and must submit an application to the Department of Revenue by January 15th each year detailing their fuel production or consumption. The bill also requires the department to report annually to the legislature on the credit's usage, including details about the number of returns claiming the credit, total credit amounts, and other relevant information. Additionally, the bill amends existing tax credit ordering rules to incorporate this new alternative jet fuel credit into the state's tax credit system.