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Bill

HB 1230

Income tax, state; sustainable aviation fuel production tax credit.

2026 Regular Session Introduced by Briana Sewell

Virginia would offer state income tax credits to businesses producing sustainable aviation fuel, aiming to grow the SAF industry and reduce aviation emissions.

Assigned HFIN sub: Subcommittee #1
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Bill Summary · HB 1230

Legislative bill overview

HB 1230 creates a state income tax credit for businesses that produce sustainable aviation fuel (SAF) in Virginia. The credit would reduce the state income tax liability for qualifying SAF producers, incentivizing the development and expansion of this emerging fuel industry within the state.

Why is this important

Sustainable aviation fuel is a key component of federal and state climate goals, as aviation accounts for significant greenhouse gas emissions. This tax credit could position Virginia as a regional hub for SAF production, creating manufacturing jobs while supporting decarbonization of the aviation sector.

Potential points of contention

  • Revenue cost: The state's SAF industry is nascent; projecting tax revenue loss and long-term fiscal impact is uncertain
  • Industry subsidy debate: Critics may argue government shouldn't pick winners in fuel markets; proponents counter that SAF faces cost disadvantages versus conventional jet fuel
  • Scope ambiguity: Bill details are unclear from title alone—eligibility thresholds, credit percentage, sunset provisions, and production volume caps will determine actual usage and fairness

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

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