Senate Bill 284 proposes the establishment of a tax credit for the production of sustainable aviation fuel (SAF) in Wisconsin. The bill defines sustainable aviation fuel as aviation fuel that is at least 90% derived from synthetic, renewable, and nonpetroleum sources, including energy crops. Starting in tax year 2028, eligible claimants can receive a credit of $1.50 for each gallon of SAF produced in the state, provided that any energy crops used are grown within the United States. The bill also includes provisions that partnerships, limited liability companies, and tax-option corporations cannot claim the credit directly, but can pass the eligibility and amount of the credit to their partners or shareholders based on their ownership interests.

The bill amends several sections of the statutes to incorporate this new tax credit, including the addition of new subsections that outline the definitions, filing claims, limitations, and administration of the credit. Notably, it amends existing statutes to include references to the new credit, specifically in sections related to income and franchise tax credits. The amendments also clarify that the credits computed under the new provisions will not be passed through by certain business entities, ensuring that the benefits of the credit are directed to individual claimants.

Statutes affected:
Bill Text: 71.05(6)(a)15, 71.05, 71.21(4)(a), 71.21, 71.26(2)(a)4, 71.26, 71.34(1k)(g), 71.34, 71.45(2)(a)10, 71.45