Lawmakers in Wisconsin on April 3 announced their intent to introduce legislation that would create a $1.50 per gallon production tax credit for sustainable aviation fuel (SAF). The bill is currently circulating for co-sponsorship support before moving ahead in the legislative process. The legislation will be formally introduced at a later date. 

The bill is being spearheaded by State Rep. David Steffen, R-Howard, and State Sens. Romaine Quinn, R-Birchwood, and Patrick Testin, R-Stevens Point.

To qualify for the credit, the SAF would need to be produced in Wisconsin from and meet certain other conditions. This includes a requirement that at least 90% of the fuel be derived from synthetic, renewable, and nonpetroleum sources, such as energy crops. In addition, the legislation requires eligible SAF feedstock to be produced in the U.S. If signed into law, the credit would take effect in 2028.

"Wisconsin's geographic location coupled with its strong agriculture industry perfectly positions our state to be a leader in producing sustainable aviation fuel--which is a big win for Wisconsin farmers and timber producers,” Steffen said. “Wisconsin produced SAF will create a new market for what are otherwise low value crops. This fuel presents the exciting opportunity for our state to achieve two important goals: advance sustainable, domestic energy and support our evolving farming and timber industries.”