HB1230

Virginia HB1230 provides a tax credit for sustainable aviation fuel production in the state.

Virginia HB1230 introduces a tax credit for eligible producers of sustainable aviation fuel within the state. This credit applies to fuel produced from feedstock or biomass grown or produced in Virginia. The credit is available for taxable years starting after January 1, 2026, and before January 1, 2031. The credit amount is the lesser of $0.75 per gallon or $5 million, with an aggregate limit of $20 million per taxable year. Credits can be carried over for up to five years. The Tax Commissioner will develop guidelines for claiming this credit.