VA HB1230

Creates a nonrefundable income tax credit of $0.75 per gallon for sustainable aviation fuel produced in Virginia, capped at $5 million per producer annually

Limits total program credits to $20 million per year statewide, allocated on a first-come, first-served basis

Requires eligible producers to manufacture sustainable aviation fuel using feedstock or biomass with at least 10% grown or produced in Virginia

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

Tax credit applies to taxable years from January 1, 2027, through January 1, 2032, with unused credits carrying forward for up to five years