HB5749 Summary

• Creates a $2 per gallon sustainable aviation fuel purchase credit beginning January 1, 2023, applicable to both the Use Tax Act and Service Use Tax Act.

• Air carriers can use the credit to satisfy all or part of their use tax or service use tax liability on sustainable aviation fuel purchases by providing dated certification to fuel sellers.

• Defines sustainable aviation fuel as liquid fuel consisting of synthesized hydrocarbons meeting American Society for Testing and Materials standards, derived from biomass, waste streams, renewable energy, or carbon oxides (excluding palm fatty acid distillates).

• Requires sustainable aviation fuel to achieve at least 50% lifecycle greenhouse gas emissions reduction compared to petroleum-based jet fuel, verified through International Civil Aviation Organization methodology or an alternative method approved by the U.S. Secretary of Energy and Environmental Protection Agency.

• The fuel seller's retailer and service occupation tax liability can be satisfied using the air carrier's sustainable aviation fuel purchase credit certification.