The Sustainable Vessel Fuel Act amends the Internal Revenue Code of 1986 to expand the clean fuel production credit , specifically introducing a special rate for sustainable vessel fuel . This legislation aims to incentivize the production and use of environmentally friendly fuels for the maritime sector. The bill defines "sustainable vessel fuel" as a liquid fuel suitable for commercial vessels or ferries that is not derived from palm fatty acid distillates or petroleum and has an emissions rate of zero . It also requires the fuel to meet specific standards identified by the Secretary, such as those established by the American Society for Testing and Materials. Furthermore, the credit for sustainable vessel fuel would be available for a longer period, extending until December 31, 2035 , compared to the general clean fuel credit termination date of December 31, 2027.
Read twice and referred to the Committee on Finance.
Taxation
Sustainable Vessel Fuel Act
USA119th CongressS-692| Senate
| Updated: 2/24/2025
The Sustainable Vessel Fuel Act amends the Internal Revenue Code of 1986 to expand the clean fuel production credit , specifically introducing a special rate for sustainable vessel fuel . This legislation aims to incentivize the production and use of environmentally friendly fuels for the maritime sector. The bill defines "sustainable vessel fuel" as a liquid fuel suitable for commercial vessels or ferries that is not derived from palm fatty acid distillates or petroleum and has an emissions rate of zero . It also requires the fuel to meet specific standards identified by the Secretary, such as those established by the American Society for Testing and Materials. Furthermore, the credit for sustainable vessel fuel would be available for a longer period, extending until December 31, 2035 , compared to the general clean fuel credit termination date of December 31, 2027.