Illinois Governor JB Pritzker signed a package of tax and revenue changes for the state which includes the sustainable aviation fuel (SAF) purchasers credit. The bill creates a $1.50 per U.S. gallon SAF tax credit airlines can use to satisfy all or part of their state use tax liabilities.
Illinois Soybean Growers (ISG) Vice Chairman Ron Kindred says the credit supports soybean and corn farmers by promoting the domestic production of renewable fuels. “This bill represents acknowledgment of the need for Illinois-made renewable fuels that are good for the environment, economy and energy security. It also shows support for the hard work of the 43,000 Illinois soybean farmers and creates incentive to grow even more bushels of soybeans than the record-breaking 677.25 million bushels grown in Illinois in 2022.”
The legislation creates a tax credit for every gallon of SAF sold to or used by an air carrier in Illinois from June 1, 2023, to June 1, 2033. This tax credit effectively lowers the price airlines pay for SAF pumped into aircraft at airports in Illinois.
Beginning in June 2028, the state tax credit will only apply to SAF derived from domestic feedstocks, creating a new demand for Illinois soybeans and other environmentally-friendly agricultural feedstocks.