Sustainable Aviation Fuel Tax Credit (Illinois)

On January 2023, the Illinois congress passed the Invest in Illinois Act (Invest Act). The Investment Act aims to introduce new energy-related incentives, including a sustainable aviation fuel (SAF) purchase credit.

The Invest Act creates a USD 1.50 per gallon SAF purchase tax credit and will be effective from June 1, 2023, to January 1, 2033. The SAF credit will apply to SAF either sold to or used by an air carrier in Illinois.

The difference between Illinois SAF and SAF credits generated under the low carbon fuels standards (LCFS) of California, Oregon and Washington is that it will be given only to airlines operating in the state that buy the fuel (not to the producers of the fuel). The credit will only apply to SAF used on domestic flights