Bill Text: IL HB5749 | 2021-2022 | 102nd General Assembly | Introduced

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Bill Title: Amends the Use Tax Act and the Service Use Tax Act. Creates a sustainable aviation fuel purchase credit in the amount of $2 per gallon of sustainable aviation fuel purchased.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Introduced - Dead) 2022-11-30 - Added Chief Co-Sponsor Rep. Eva-Dina Delgado [HB5749 Detail]

Download: Illinois-2021-HB5749-Introduced.html

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102ND GENERAL ASSEMBLY State of Illinois 2021 and 2022 HB5749 Introduced , by Rep. Michael J. Zalewski SYNOPSIS AS INTRODUCED:
35 ILCS 105/3-87 new
35 ILCS 110/3-72 new
Amends the Use Tax Act and the Service Use Tax Act. Creates a sustainable aviation fuel purchase credit in the amount of $2 per gallon of sustainable aviation fuel purchased.
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A BILL FOR
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AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Use Tax Act is amended by adding Section
3-87 as follows:
(35 ILCS 105/3-87 new)
Sec. 3-87. Sustainable Aviation Fuel Purchase Credit.
(a) Beginning on or after January 1, 2023 sustainable
aviation fuel sold to or used by an air carrier, certified by
the carrier to the Department to be used for consumption,
shipment, or storage in the conduct of its business as an air
common carrier, earns a credit in an amount of $2 per gallon of
sustainable aviation fuel purchased. The credit earned shall
be referred to the Sustainable Aviation Fuel Credit.
The purchaser of sustainable aviation fuel shall certify
to the seller of the aviation fuel that the purchaser is
satisfying all or part of its' liability under the Use Tax Act
or the Service Use Tax Act that is due on the purchase of
aviation fuel by use of the sustainable aviation fuel purchase
credit.
The Sustainable Aviation Fuel Purchase Credit
certification must be dated and shall include the name and
address of the purchaser, the purchaser's registration number,

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if registered, the credit being applied, and a statement that
the State use tax or service use tax liability is being
satisfied with the air carrier's accumulated sustainable
aviation fuel purchase credit.
A Sustainable Aviation Fuel Purchase Credit certification
provided by the air carrier may be used to satisfy the
retailer's or serviceman's liability on aviation fuel under
the Retailers' Occupation Tax Act or Service Occupation Tax
Act for the credit claimed.
(b) As used in this Section:
"Sustainable aviation fuel" means liquid fuel that:
(1) consists of synthesized hydrocarbons and meets the
requirements of:
(A) the American Society for Testing and Materials
International Standard D7566; or
(B) the Fischer-Tropsch provisions of American
Society for Testing and Materials International
Standard D1655, Annex A1;
(2) is derived from biomass resources, waste streams,
renewable energy sources, or gaseous carbon oxides;
(3) is not derived from palm fatty acid distillates;
and
(4) achieves at least a 50% lifecycle greenhouse gas
emissions reduction in comparison with petroleum-based jet
fuel, as determined by a test that shows:
(A) that the fuel production pathway achieves at

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least a 50% reduction of the aggregate attributional
core lifecycle emissions and the positive induced land
use change values under the lifecycle methodology for
sustainable aviation fuels adopted by the
International Civil Aviation Organization with the
agreement of the United States; or
(B) that the fuel production pathway achieves at
least a 50% reduction of the aggregate attributional
core lifecycle greenhouse gas emissions values and the
positive induced land use change values under another
methodology that the United States Secretary of
Energy, in consultation with the Administrator of the
United States Environmental Protection Agency,
determines is reflective of the latest scientific
understanding of lifecycle greenhouse gas emissions.
(c) This Section is exempt from the provisions of Section
3-90.
Section 10. The Service Use Tax Act is amended by adding
Section 3-72 as follows:
(35 ILCS 110/3-72 new)
Sec. 3-72. Sustainable Aviation Fuel Purchase Credit.
(a) Beginning on or after January 1, 2023 sustainable
aviation fuel sold to or used by an air carrier, certified by
the carrier to the Department to be used for consumption,

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shipment, or storage in the conduct of its business as an air
common carrier, earns a credit in an amount of $2 per gallon of
sustainable aviation fuel purchased. The credit earned shall
be referred to the Sustainable Aviation Fuel Credit.
The purchaser of sustainable aviation fuel shall certify
to the seller of the aviation fuel that the purchaser is
satisfying all or part of its' liability under the Use Tax Act
or the Service Use Tax Act that is due on the purchase of
aviation fuel by use of the sustainable aviation fuel purchase
credit.
The Sustainable Aviation Fuel Purchase Credit
certification must be dated and shall include the name and
address of the purchaser, the purchaser's registration number,
if registered, the credit being applied, and a statement that
the State use tax or service use tax liability is being
satisfied with the air carrier's accumulated sustainable
aviation fuel purchase credit.
A Sustainable Aviation Fuel Purchase Credit certification
provided by the air carrier may be used to satisfy the
retailer's or serviceman's liability on aviation fuel under
the Retailers' Occupation Tax Act or Service Occupation Tax
Act for the credit claimed.
(b) As used in this Section:
"Sustainable aviation fuel" means liquid fuel that:
(1) consists of synthesized hydrocarbons and meets the
requirements of:

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(A) the American Society for Testing and Materials
International Standard D7566; or
(B) the Fischer-Tropsch provisions of American
Society for Testing and Materials International
Standard D1655, Annex A1;
(2) is derived from biomass resources, waste streams,
renewable energy sources, or gaseous carbon oxides;
(3) is not derived from palm fatty acid distillates;
and
(4) achieves at least a 50% lifecycle greenhouse gas
emissions reduction in comparison with petroleum-based jet
fuel, as determined by a test that shows:
(A) that the fuel production pathway achieves at
least a 50% reduction of the aggregate attributional
core lifecycle emissions and the positive induced land
use change values under the lifecycle methodology for
sustainable aviation fuels adopted by the
International Civil Aviation Organization with the
agreement of the United States; or
(B) that the fuel production pathway achieves at
least a 50% reduction of the aggregate attributional
core lifecycle greenhouse gas emissions values and the
positive induced land use change values under another
methodology that the United States Secretary of
Energy, in consultation with the Administrator of the
United States Environmental Protection Agency,

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determines is reflective of the latest scientific
understanding of lifecycle greenhouse gas emissions.
(c) This Section is exempt from the provisions of Section
3-75.