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


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 3-0)

Status: (Introduced) 2022-06-08 - Added Co-Sponsor Rep. Edgar Gonzalez, Jr. [HB5749 Detail]

Download: Illinois-2021-HB5749-Introduced.html


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

HB5749LRB102 27242 HLH 38941 b
1 AN ACT concerning revenue.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Use Tax Act is amended by adding Section
53-87 as follows:
6 (35 ILCS 105/3-87 new)
7 Sec. 3-87. Sustainable Aviation Fuel Purchase Credit.
8 (a) Beginning on or after January 1, 2023 sustainable
9aviation fuel sold to or used by an air carrier, certified by
10the carrier to the Department to be used for consumption,
11shipment, or storage in the conduct of its business as an air
12common carrier, earns a credit in an amount of $2 per gallon of
13sustainable aviation fuel purchased. The credit earned shall
14be referred to the Sustainable Aviation Fuel Credit.
15 The purchaser of sustainable aviation fuel shall certify
16to the seller of the aviation fuel that the purchaser is
17satisfying all or part of its' liability under the Use Tax Act
18or the Service Use Tax Act that is due on the purchase of
19aviation fuel by use of the sustainable aviation fuel purchase
20credit.
21 The Sustainable Aviation Fuel Purchase Credit
22certification must be dated and shall include the name and
23address of the purchaser, the purchaser's registration number,

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1if registered, the credit being applied, and a statement that
2the State use tax or service use tax liability is being
3satisfied with the air carrier's accumulated sustainable
4aviation fuel purchase credit.
5 A Sustainable Aviation Fuel Purchase Credit certification
6provided by the air carrier may be used to satisfy the
7retailer's or serviceman's liability on aviation fuel under
8the Retailers' Occupation Tax Act or Service Occupation Tax
9Act for the credit claimed.
10 (b) As used in this Section:
11 "Sustainable aviation fuel" means liquid fuel that:
12 (1) consists of synthesized hydrocarbons and meets the
13 requirements of:
14 (A) the American Society for Testing and Materials
15 International Standard D7566; or
16 (B) the Fischer-Tropsch provisions of American
17 Society for Testing and Materials International
18 Standard D1655, Annex A1;
19 (2) is derived from biomass resources, waste streams,
20 renewable energy sources, or gaseous carbon oxides;
21 (3) is not derived from palm fatty acid distillates;
22 and
23 (4) achieves at least a 50% lifecycle greenhouse gas
24 emissions reduction in comparison with petroleum-based jet
25 fuel, as determined by a test that shows:
26 (A) that the fuel production pathway achieves at

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1 least a 50% reduction of the aggregate attributional
2 core lifecycle emissions and the positive induced land
3 use change values under the lifecycle methodology for
4 sustainable aviation fuels adopted by the
5 International Civil Aviation Organization with the
6 agreement of the United States; or
7 (B) that the fuel production pathway achieves at
8 least a 50% reduction of the aggregate attributional
9 core lifecycle greenhouse gas emissions values and the
10 positive induced land use change values under another
11 methodology that the United States Secretary of
12 Energy, in consultation with the Administrator of the
13 United States Environmental Protection Agency,
14 determines is reflective of the latest scientific
15 understanding of lifecycle greenhouse gas emissions.
16 (c) This Section is exempt from the provisions of Section
173-90.
18 Section 10. The Service Use Tax Act is amended by adding
19Section 3-72 as follows:
20 (35 ILCS 110/3-72 new)
21 Sec. 3-72. Sustainable Aviation Fuel Purchase Credit.
22 (a) Beginning on or after January 1, 2023 sustainable
23aviation fuel sold to or used by an air carrier, certified by
24the carrier to the Department to be used for consumption,

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1shipment, or storage in the conduct of its business as an air
2common carrier, earns a credit in an amount of $2 per gallon of
3sustainable aviation fuel purchased. The credit earned shall
4be referred to the Sustainable Aviation Fuel Credit.
5 The purchaser of sustainable aviation fuel shall certify
6to the seller of the aviation fuel that the purchaser is
7satisfying all or part of its' liability under the Use Tax Act
8or the Service Use Tax Act that is due on the purchase of
9aviation fuel by use of the sustainable aviation fuel purchase
10credit.
11 The Sustainable Aviation Fuel Purchase Credit
12certification must be dated and shall include the name and
13address of the purchaser, the purchaser's registration number,
14if registered, the credit being applied, and a statement that
15the State use tax or service use tax liability is being
16satisfied with the air carrier's accumulated sustainable
17aviation fuel purchase credit.
18 A Sustainable Aviation Fuel Purchase Credit certification
19provided by the air carrier may be used to satisfy the
20retailer's or serviceman's liability on aviation fuel under
21the Retailers' Occupation Tax Act or Service Occupation Tax
22Act for the credit claimed.
23 (b) As used in this Section:
24 "Sustainable aviation fuel" means liquid fuel that:
25 (1) consists of synthesized hydrocarbons and meets the
26 requirements of:

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

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1 determines is reflective of the latest scientific
2 understanding of lifecycle greenhouse gas emissions.
3 (c) This Section is exempt from the provisions of Section
43-75.
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