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Tax Credits for Zero-Emission Fuel Production for Ships and Ferries.

This law introduces new tax credits for companies that produce zero-emission liquid fuel specifically for commercial vessels and ferries. The goal is to accelerate the shift towards cleaner energy sources in maritime transport. This financial incentive supports the development of sustainable fuels, potentially leading to reduced pollution in coastal areas.
Key points
A special tax credit is created for producers of sustainable vessel fuel (SVF) under the Clean Fuel Production Credit.
SVF must be a liquid fuel suitable for commercial vessels, not derived from petroleum or palm fatty acid distillates, and must have a zero-emissions rate.
The tax credit for this sustainable vessel fuel is extended until December 31, 2034, promoting long-term investment in green shipping.
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Additional Information
Sustainable Vessel Fuel Act
Print number: S 3002
Sponsor: Sen. Hirono, Mazie K. [D-HI]
Process start date: 2023-09-29