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Bill

HB 1303

TO CREATE THE SUSTAINABLE AVIATION FUEL INCENTIVE ACT; AND TO CREATE AN INCOME TAX CREDIT RELATED TO SUSTAINABLE AVIATION FUEL.

2025 Regular Session Introduced by Brandon Achor and 63 co-sponsors

Arkansas creates income tax credits for sustainable aviation fuel producers/blenders to incentivize clean fuel production and attract related industry investment to the state.

Notification that HB1303 is now Act 546
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WeVote Research Nonpartisan
Bill Summary · HB 1303

Legislative bill overview

HB 1303 establishes the Sustainable Aviation Fuel (SAF) Incentive Act in Arkansas, creating an income tax credit for producers or blenders of sustainable aviation fuel. The bill aims to incentivize the development and production of alternative aviation fuels as part of broader sustainability and energy independence goals.

Why is this important

Sustainable aviation fuel represents a significant portion of decarbonization efforts in the aviation sector, which accounts for roughly 2-3% of global carbon emissions. By offering tax credits, Arkansas positions itself to attract SAF production facilities, potentially creating jobs and establishing the state as a hub for emerging clean energy industries. This aligns with national trends toward reducing aviation's environmental footprint while supporting domestic fuel production.

Potential points of contention

  • Fiscal impact: Tax credits reduce state revenue; the bill's cost to the state treasury and revenue offset mechanisms are key concerns for fiscal conservatives
  • Market viability questions: Critics may argue SAF doesn't need subsidies if truly competitive, or conversely, that credits are insufficient to make production economically viable in Arkansas
  • Specificity of incentives: Ambiguity around credit eligibility, amount, duration, and whether credits apply to in-state production only could create implementation challenges or unintended consequences

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

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