Illinois General Assembly - Full Text of HB5749

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Full Text of HB5749 102nd General Assembly

Introduced
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HB5749 102ND GENERAL ASSEMBLY

102ND GENERAL ASSEMBLY State of Illinois 2021 and 2022
HB5749

Introduced 11/16/2022, by Rep. Michael J. Zalewski, Margaret Croke and Edgar Gonzalez, Jr.

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.

LRB102 27242 HLH 38941 b

A BILL FOR

HB5749 LRB102 27242 HLH 38941 b

1     AN ACT concerning revenue.

2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:

4     Section 5. The Use Tax Act is amended by adding Section
5 3-87 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
9 aviation fuel sold to or used by an air carrier, certified by
10 the carrier to the Department to be used for consumption,
11 shipment, or storage in the conduct of its business as an air
12 common carrier, earns a credit in an amount of $2 per gallon of
13 sustainable aviation fuel purchased. The credit earned shall
14 be referred to the Sustainable Aviation Fuel Credit.
15     The purchaser of sustainable aviation fuel shall certify
16 to the seller of the aviation fuel that the purchaser is
17 satisfying all or part of its' liability under the Use Tax Act
18 or the Service Use Tax Act that is due on the purchase of
19 aviation fuel by use of the sustainable aviation fuel purchase
20 credit.
21     The Sustainable Aviation Fuel Purchase Credit
22 certification must be dated and shall include the name and
23 address of the purchaser, the purchaser's registration number,

HB5749 - 2 - LRB102 27242 HLH 38941 b

1 if registered, the credit being applied, and a statement that
2 the State use tax or service use tax liability is being
3 satisfied with the air carrier's accumulated sustainable
4 aviation fuel purchase credit.
5     A Sustainable Aviation Fuel Purchase Credit certification
6 provided by the air carrier may be used to satisfy the
7 retailer's or serviceman's liability on aviation fuel under
8 the Retailers' Occupation Tax Act or Service Occupation Tax
9 Act 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

HB5749 - 3 - LRB102 27242 HLH 38941 b

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
17 3-90.

18     Section 10. The Service Use Tax Act is amended by adding
19 Section 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
23 aviation fuel sold to or used by an air carrier, certified by
24 the carrier to the Department to be used for consumption,

HB5749 - 4 - LRB102 27242 HLH 38941 b

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

HB5749 - 6 - LRB102 27242 HLH 38941 b

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
4 3-75.

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