Bill > S692

This bill amends the Internal Revenue Code to expand the clean fuel production credit by creating a special tax credit rate for sustainable vessel fuel. Specifically, the bill defines "sustainable vessel fuel" as a liquid fuel suitable for commercial vessels or ferries that is not derived from palm fatty acid distillates or petroleum, has zero emissions, and meets standards established by the American Society for Testing and Materials. The legislation allows sustainable vessel fuel to be classified as a transportation fuel eligible for tax credits, and extends the tax credit availability for such fuel through December 31, 2035 (compared to the existing December 31, 2027 deadline for other transportation fuels). The bill aims to incentivize the development and use of environmentally friendly fuel alternatives for marine transportation by providing a financial benefit to producers who create sustainable vessel fuels that meet specific environmental and technical criteria. The amendments will apply to fuel produced after December 31, 2025, giving manufacturers and fuel developers time to prepare and adapt to the new guidelines.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/692/all-info