Republican lawmakers are circulating a bill to create a tax credit for sustainably produced jet fuel, in hopes of opening up a new market for Wisconsin timber and farm products.
Rep. David Steffen, R-Howard, as well as Sens. Romaine Quinn of Birchwood and Patrick Testin of Stevens Point, recently sent a co-sponsorship memo to other lawmakers on the legislation.
“Wisconsin can lead the way in championing the production of this sustainable fuel, providing our farmers and timber producers with a long-term, reliable path in our everchanging global economy,” they wrote.
Under the bill, the state would create an income and franchise tax credit of $1.50 per gallon of “sustainable aviation fuel” or SAF produced in Wisconsin, starting in 2028. It’s defined in the bill as aviation fuel that’s at least 90% derived from synthetic, renewable and nonpetroleum sources.
SAF has similar properties to standard jet fuel, but has a smaller carbon footprint, according to an overview from the U.S. Department of Energy. Depending on how it’s made, the fuel can produce “dramatically” lower emissions, and the agency says some emerging pathways for production have a net-negative emissions footprint.
Bill authors note it’s made from renewable agricultural resources including “low value” energy crops. Potential feedstocks can include corn grain, oil seeds, forestry residues, wet wastes such as manure and even algae. DOE says using wet wastes has the added benefit of reducing pollution on watersheds while also reducing greenhouse gases.
SAF could provide a boost to Wisconsin’s growing $4.2 billion biofuels industry, which employs more than 19,000 people, the lawmakers wrote in the memo.
“While there is currently no production of SAF occurring in Wisconsin, our state is in a prime position to become a hub for SAF production, both geographically, and because of our strong agricultural outputs,” they wrote.
The co-sponsorship deadline is April 16 at 5 p.m.
See the memo.
