,,ii #aagth ,,congress #ast ,session ,s4 #bbfc ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,june #bd1 #bjba ,mr4 ,brown 7for himself1 ,ms4 ,cantwell1 ,mr4 ,warnock1 and ,mrs4 ,murray7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to provide a tax credit for sustainable aviation fuel1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,sustainable ,skies ,act4 #b4 ,sustainable aviation fuel credit 7a7 ,in general ,subpart ,d of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by inserting after section #dj;,a the following new section3 #dj;,b4 ,sustainable aviation fuel credit 7a7 ,in general 7#a7 ,credit amount ,for purposes of section #ch1 the sustainable aviation fuel credit for the taxable year is1 with respect to each gallon of sustainable aviation fuel which is used by the taxpayer in the production of a qualified mixture-- 7,a7 a base credit amount of #a4ej1 plus 7,b7 the applicable supplementary credit amount4 7#b7 ,applicable supplementary credit amount 7,a7 ,in general ,for purposes of paragraph 7#a71 the applicable supplementary credit amount is #j4ja for every percentage point above #ej percent for which the sustainable aviation fuel is certified under subsection 7f7 to reduce emissions in comparison with petroleum-based jet fuel as described in subsections 7d77#b77;,a7 or 7d77#b77;,b74 7,b7 ,maximum supplementary credit amount ,for purposes of subparagraph 7,a71 the maximum applicable supplementary credit amount allowable is #j4ej4 7#c7 #dj;,a ,exception ,if the biodiesel fuels credit under section #dj;,a is not in effect for a taxable year1 paragraph 7#a77;,a7 shall by applied by substituting #a4ae for #a4ej4 7b7 ,qualified mixture ,for purposes of this section1 the term qualified mixture means a mixture of sustainable aviation fuel and kerosene1 which-- 7#a7 is sold by the taxpayer producing such mixture for use in an aircraft that has fuel uplift in the ,united ,states1 or 7#b7 is used-- 7,a7 by the taxpayer producing such mixture1 and 7,b7 in an aircraft that has fuel uplift in the ,united ,states4 7c7 ,sale or use must be in trade or business1 etc ,sustainable aviation fuel used in the production of a qualified mixture shall be taken into account-- 7#a7 only if the sale or use described in subsection 7b7 is in a trade or business of the taxpayer1 and 7#b7 for the taxable year in which such sale or use occurs4 7d7 ,sustainable aviation fuel ,for purposes of this section1 the term sustainable aviation fuel means liquid fuel-- 7#a7 that-- 7,a7 consists of synthesized hydrocarbons1 7,b7 meets the requirements of-- 7i7 ,,astm ,international ,standard ,d#geff1 or 7ii7 the ,fischer ,tropsch provisions of ,,astm ,international ,standard ,d#afee1 ,annex ,a#a1 7,c7 is derived from biomass 7as such term is defined in section #de,k7c77#c771 waste streams1 renewable energy sources1 or gaseous carbon oxides1 and 7,d7 is not derived from palm fatty acid distillates1 and 7#b7 that achieves at least a #ej percent lifecycle greenhouse gas emissions reduction in comparison with petroleum-based jet fuel1 as determined by a test that shows-- 7,a7 the fuel production pathway achieves at least a #ej percent reduction of the aggregate attributional core lifecycle emissions and the positive induced land use change values under the lifecycle methodology for sustainable aviation fuels adopted by the ,international ,civil ,aviation ,organization with the agreement of the ,united ,states1 or 7,b7 the fuel production pathway achieves at least a #ej percent reduction of the aggregate attributional core lifecycle greenhouse gas emissions values and the positive induced land use change values under another methodology that the ,secretary1 in consultation with the ,administrator of the ,environmental ,protection ,agency and the ,secretary of ,energy working jointly1 determines is-- 7i7 reflective of the latest scientific understanding of lifecycle greenhouse gas emissions1 and 7ii7 as stringent as the requirement under subparagraph 7,a74 7e7 ,time limit for adoption of new sustainable aviation fuel emissions reduction test ,for purposes of subparagraph 7,b7 of subsection 7d77#b71 the ,secretary1 in consultation with the ,administrator of the ,environmental ,protection ,agency and the ,secretary of ,energy working jointly1 shall1 within #bd months after the date of the enactment of this section1 adopt at least one methodology for testing lifecycle greenhouse gas emissions that meets the requirements of such subparagraph4 7f7 ,certification requirements 7#a7 ,in general ,no credit shall be allowed under subsection 7a7 unless the taxpayer meets certification requirements demonstrating the sustainable aviation fuel conforms with one of the lifecycle greenhouse gas emissions reduction tests under subsection 7d77#b74 7#b7 ,certification requirement for test in 7d77#b77;,a7 ,for purposes of paragraph 7#a71 with respect to certifications based on the test under subparagraph 7,a7 of subsection 7d77#b71 the taxpayer shall obtain from the fuel producer a certification from a sustainability certification scheme approved by the ,international ,civil ,aviation ,organization demonstrating that the fuel conforms with the ,carbon ,offsetting and ,reduction ,scheme for ,international ,aviation's sustainability criteria and the traceability and information transmission requirements approved by the ,international ,civil ,aviation ,organization with the agreement of the ,united ,states4 7#c7 ,certification requirements for test in 7d77#b77;,b7 ,for purposes of paragraph 7#a71 with respect to certifications based on the test under subparagraph 7,b7 of subsection 7d77#b7-- 7,a7 the taxpayer shall obtain from the fuel producer a certification that the fuel has been determined by the ,environmental ,protection ,agency to qualify under the requirements of such subparagraph1 and 7,b7 the taxpayer shall obtain from the fuel producer an additional certification that the fuel conforms with the sustainability criteria and the traceability and information transmission requirements that the ,secretary1 in consultation with the ,administrator of the ,environmental ,protection ,agency and the ,secretary of ,energy working jointly1 determines are equivalent with those necessary to claim emissions reductions from sustainable aviation fuel use under the ,carbon ,offsetting and ,reduction ,scheme for ,international ,aviation adopted by the ,international ,civil ,aviation ,organization with the agreement of the ,united ,states4 7g7 ,termination ,this section shall not apply to any sale or use after ,december #ca1 #bjca4 4 7b7 ,credit made part of general business credit ,section #ch7;b7 of the ,internal ,revenue ,code of #aihf is amended by striking plus at the end of paragraph 7#cb71 by striking the period at the end of paragraph 7#cc7 and inserting 1 plus1 and by inserting after paragraph 7#cc7 the following new paragraph3 7#cd7 the sustainable aviation fuel credit determined under section #dj;,b4 4 7c7 ,conforming amendment ,section #dj;,a7f7 of such ,code is amended by striking paragraph 7#d74 7d7 ,effective date ,the amendments made by this section shall apply to taxable years ending after the date of the enactment of this ,act4