Bill > HB1230

This bill establishes a state income tax credit for eligible producers of sustainable aviation fuel, which is a liquid fuel meeting specific criteria, including being derived from biomass or renewable energy sources and achieving a significant reduction in greenhouse gas emissions compared to traditional jet fuel. An "eligible producer" is defined as a taxpayer manufacturing this fuel in the Commonwealth, with at least 10% of the feedstock or biomass grown or produced within the state. For taxable years 2027 through 2031, producers can claim a nonrefundable credit equal to $0.75 per gallon of sustainable aviation fuel produced, up to a maximum of $5 million per producer. However, the total amount of credits allowed statewide is capped at $20 million per year, and these credits will be allocated on a first-come, first-served basis. Any unused credit can be carried over for up to five years, and credits for partnerships or S corporations will be passed through to their owners. The Tax Commissioner will create guidelines for claiming this credit, which will be exempt from standard administrative procedures.

Budget and Finance

https://lis.virginia.gov/bill-details/20261/HB1230