Bill > A07308

This bill establishes a sustainable aviation fuel (SAF) tax credit in New York state, providing financial incentives for producers of low-carbon aviation fuels. The tax credit allows eligible producers to claim up to $2 per gallon of sustainable aviation fuel purchased and used for flights departing from airports in New York, with the credit amount increasing by two cents for each additional percentage point of carbon dioxide emissions reduction beyond 50%. To qualify, the fuel must meet specific criteria, including being derived from biomass, waste streams, renewable energy sources, or carbon oxides, and not originating from palm or petroleum derivatives. Producers must obtain a certificate from the New York State Energy Research and Development Authority (NYSERDA) and report monthly fuel sales. The total amount of tax credits is capped at $30 million per year, and the credit can be applied against various state tax obligations, with any excess credit being refundable. The bill defines detailed technical specifications for sustainable aviation fuel, including lifecycle greenhouse gas emission reduction methodologies, and applies to taxable years beginning on or after January 1, 2025. The legislation aims to incentivize the development and use of more environmentally friendly aviation fuels in New York state.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/A7308