KY HB545

Creates a nonrefundable, nontransferable tax credit for alternative jet fuel producers and feedstock providers located in Kentucky, effective for taxable years beginning January 1, 2029 through January 1, 2035

Credit rates range from $0.50/gallon for feedstock providers to $2.50/gallon for producers using Kentucky-grown agricultural feedstocks, with credits stackable up to $3/gallon per entity

Alternative jet fuel must achieve at least 50% lifecycle greenhouse gas emissions reduction compared to petroleum-based jet fuel and meet ASTM International standards D7566 or D1655

Individual taxpayer credits capped at $2 million per year; total program capped at $20 million annually, with pro rata distribution if exceeded

Department of Revenue must promulgate regulations by October 1, 2028 and report annually to the General Assembly on credit usage, gallons claimed, and geographic distribution