Bloomington, Ill – February 3, 2023 – Illinois Soybean Growers (ISG) applauds Governor JB Pritzker’s signature of SB 2951 which includes the sustainable aviation fuel (SAF) purchasers credit. The bill, which creates a $1.50 per U.S. gallon SAF tax credit airlines can use to satisfy all or part of their state use tax liabilities, further supports Illinois’ soybean and corn farmers by promoting the domestic production of renewable fuels.
“We are pleased that Gov. Pritzker and Illinois legislators recognize the important role renewable fuels play in bolstering our state’s economy,” said ISA Vice Chairman and Atlanta, Ill. farmer, Ron Kindred. “This bill represents acknowledgment of the need for Illinois-made renewable fuels that are good for the environment, economy and energy security. It also shows support for the hard work of the 43,000 Illinois soybean farmers and creates incentive to grow even more bushels of soybeans than the record-breaking 677.25 million bushels grown in Illinois in 2022.”
SAF is a biofuel used to power aircraft with similar properties to conventional jet fuel but with a smaller carbon footprint. Using many feedstocks and technologies SAF dramatically reduces life cycle greenhouse gas (GHG) emissions compared to conventional jet fuel. Some emerging SAF pathways even have a net negative GHG footprint.
“The passage of this legislation is the beginning of new opportunities for Illinois soybean farmers like we’ve never seen,” said Kindred. “Growing soybeans not only improves soil quality and reduces nutrient loss, but now, we are helping decarbonize the fuel industry, providing domestic energy security and creating new jobs right here in Illinois.”
The legislation creates a tax credit for every gallon of SAF sold to or used by an air carrier in Illinois from June 1, 2023, to June 1, 2033. This tax credit effectively lowers the price airlines pay for SAF pumped into aircraft at airports in Illinois.
Beginning in June 2028, the state tax credit will only apply to SAF derived from domestic feedstocks, creating a new demand for Illinois soybeans and other environmentally-friendly agricultural feedstocks.
The Illinois Soybean Association (ISA) checkoff and membership programs represent more than 43,000 soybean farmers in Illinois. The checkoff funds market development and utilization efforts while the membership program supports the government relations interests of Illinois soybean farmers at the local, state, and national level, through the Illinois Soybean Growers (ISG). ISA upholds the interests of Illinois soybean producers through promotion, advocacy, and education with the vision of becoming a market leader in sustainable soybean production and profitability. For more information, visit the website www.ilsoy.org and www.ilsoygrowers.com.