Committee reports substitute changing timing and eligibility for alternative jet fuel tax incentives

The House Environment and Energy Committee voted by voice to report a substitute to House Bill 23‑22, which revises tax incentives and eligibility criteria for alternative jet fuel (AJF) production.

Staff summary: Matt Sterling said the substitute would (1) remove the provision modifying the carbon intensity pathway for AJF under the Clean Fuels Program, (2) establish a July 1, 2031 effective date for preferential business & occupation tax rates and tax credits for AJF manufacturers and users, (3) eliminate AJF product capacity thresholds that had previously triggered effective dates, and (4) specify a life‑cycle greenhouse‑gas methodology for determining AJF eligibility. The substitute would sunset AJF tax incentives on June 30, 2046.

Member comments and vote: Representative Hackney urged support for the substitute, saying it clarifies eligibility requirements based on life‑cycle emissions and sets a clear effective date. Representative Lee expressed thanks for the improvements and support. The committee reported the substitute out of committee by voice vote, announced as 21 ayes and 0 nays, and adjourned.