US SB692

Amends Internal Revenue Code Section 45Z to extend the clean fuel production credit's special rate (currently for sustainable aviation fuel) to also cover sustainable vessel fuel used in commercial vessels and ferries

Defines sustainable vessel fuel as liquid fuel with zero emissions rate that is not derived from palm fatty acid distillates or petroleum, and must meet standards established by the American Society for Testing and Materials or similar organizations

Extends the tax credit termination date for sustainable vessel fuel to December 31, 2035, compared to December 31, 2027 for other transportation fuels under the clean fuel production credit

Applies to fuel produced after December 31, 2025