IL SB2024

Creates a $1 per gallon income tax credit for taxpayers who manufacture renewable diesel in Illinois specifically for use by rail carriers (Class I, II, or III railroads)

Takes effect for taxable years beginning on or after January 1, 2027

Renewable diesel must be a hydrocarbon fuel derived from biomass meeting ASTM standards D975 or D396

Excess credits may be carried forward and applied to tax liability for up to 10 years following the credit year

Taxpayers must maintain documentation of gallons manufactured and verification that the fuel meets the renewable diesel definition