“A bill to amend the Internal Revenue Code of 1986 to modify the clean fuel production credit to provide a special rate for sustainable vessel fuel.”
No CRS summary available for this bill.
This section expands the special rate under the clean fuel production credit—available to producers for sales of sustainable aviation fuel—to also cover sustainable vessel fuel, which it defines as liquid fuel suitable for use in a commercial vessel or ferry, not derived from palm fatty acid distillates or petroleum, determined to have a zero emissions rate, and meeting standards identified by the Secretary (e.g., from the American Society for Testing and Materials). (As background, the clean fuel production credit provides a tax credit to producers based on the greenhouse gas emissions reduction of qualified transportation fuels sold for certain uses.) The section includes sustainable vessel fuel as qualified transportation fuel and extends the credit's availability for such fuel through December 31, 2035 (from December 31, 2027), with changes applying to fuel produced after December 31, 2025.