Establishes a sustainable aviation fuel tax credit

Bill A 7308 establishes a tax credit for producers of sustainable aviation fuel (SAF) sold in the state for flights departing within the state. Starting January 1, 2025, producers can claim $1 per gallon, increasing by two cents for each additional one percent reduction in carbon dioxide emissions above 50%, up to a maximum of $2 per gallon. To be eligible, producers must obtain a certificate from the New York State Energy Research and Development Authority (NYSERDA). The bill defines SAF as liquid fuel derived from renewable or waste sources, excluding palm or petroleum, that achieves at least a 50% lifecycle greenhouse gas emission reduction. The total amount of tax credits issued annually is capped at $30 million, and any credit exceeding a taxpayer's liability will be refunded.