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Bill

HB 545

AN ACT relating to a tax credit for alternative jet fuel.

2026 Regular Session Introduced by Ryan Bivens and 17 co-sponsors

Kentucky HB 545 creates a tax credit to incentivize alternative jet fuel production and use, reducing aviation emissions while potentially lowering state tax revenue.

to Appropriations & Revenue (H)
#administrativeregulationsandproceedings #aeronauticsandaviation #fuel #reportsmandated #stateagencies #taxation #income--corporate #income--individual
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Bill Summary · HB 545

Legislative bill overview

HB 545 establishes a tax credit for the production or use of alternative jet fuel in Kentucky. The bill incentivizes the development of sustainable aviation fuel by providing financial benefits to producers or users of these fuels as an alternative to conventional petroleum-based jet fuel.

Why is this important

Alternative jet fuel (SAF) represents a critical pathway for reducing aviation's carbon emissions, which account for approximately 2-3% of global emissions. Kentucky's aviation industry, including major airports and maintenance facilities, could benefit from lower fuel costs while advancing state sustainability goals and potentially attracting aerospace manufacturing and services.

Potential points of contention

  • Fiscal impact and revenue loss: Tax credits reduce state revenue; lawmakers may debate whether Kentucky can afford this incentive and who bears the cost
  • Market viability concerns: Questions about whether tax credits are necessary if alternative jet fuel markets are becoming economically competitive without subsidies
  • Definition and eligibility ambiguity: Without seeing the full bill text, there's uncertainty about which fuels qualify, production methods allowed, and whether credits apply to in-state production only
  • Corporate welfare perception: Critics may view jet fuel tax credits as disproportionately benefiting large airlines and fuel producers rather than individual taxpayers

Compiled from official sources — confirm details with the bill’s official record.

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