Iowa State Legislature Approves Tax Credit for Sustainable Aviation Fuel
DES MOINES, Iowa — State lawmakers in Iowa have approved the creation of a tax credit aimed at fostering the development of sustainable aviation fuel within the state.
The bill, S.F. 657, which received overwhelming support in both chambers of the state legislature, is now before Iowa Gov. Kim Reynolds for her consideration.
If signed into law, it would allow eligible businesses to claim a tax credit of 25 cents per gallon of SAF produced within the state using eligible feedstock produced or refined within Iowa through 2035.
Eligible feedstocks include ethanol, corn oil, soybean oil, animal fats, used cooking oil and algae.
To qualify for the credit, the SAF must achieve at least a 50% lifecycle greenhouse gas emission reduction when compared to traditional jet fuel.
Nick Boeyink, states director of Americans for Clean Aviation Fuels, a coalition of aviation, fuel and bio–energy related entities, has endorsed the bill, saying the lawmakers who supported it “recognize that the future of domestic energy dominance and air travel will require investments from the top down.
“Producers of sustainable aviation fuel feedstocks in Iowa will finally have a chance to directly reap the benefits that we have been talking about for years and set the stage for a fully scaled market,” he said.
The vote in the Iowa Senate on May 13 was 44 to 1. The Iowa House of Representatives voted 84 to 3 in favor of the bill the following day.
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