Legislation seeking to create a Sustainable Aviation Fuel (SAF) production tax credit is looking for cosponsors.
SAF is jet fuel, of which at least 90 percent is derived from synthetic, renewable, and nonpetroleum sources. Beginning in tax year 2028, the credit is equal to $1.50 for each gallon of sustainable aviation fuel produced by a claimant in this state during a taxable year.
For purposes of this legislation, SAF only includes feedstocks grown or sourced domestically from within the U.S. While there’s currently no production of SAF occurring in Wisconsin, the state is in a prime position to become a hub for SAF production, according to bill authors Rep. David Steffen and Sens. Romaine Quinn and Patrick Testin. Lawmakers believe Wisconsin has an edge both geographically and because of its strong agricultural output.
The anticipation from bill authors is that SAF will produce a new market for the farming and timber industries.
At a time when the agricultural sector is facing a myriad of challenges, Wisconsin can support its farmers and timber producers by seizing opportunities for our growing biofuels industry, the authors wrote in a memorandum.
Wisconsin’s biofuels industry adds $4.2 billion to the state’s economy and directly employs over 19,000 people. The SAF tax credit is on the priority lists for both the Wisconsin Farm Bureau Federation and the Wisconsin Biofuels Association for this legislative session.
Listen to a recent interview with corn grower Randy Hughes about SAF tax credits:
