Sustainable Aviation Fuel Incentives

Qualified manufacturers of sustainable aviation fuel (SAF) in Arkansas are eligible for an income tax credit equal to 30% of the cost of SAF production and processing equipment used in the state. To qualify, the manufacturer must operate a project that manufactures SAF (defined as kerosene-type jet fuel derived from wood biomass); invest more than $2 billion; begin construction by Dec. 31, 2027; employ at least 75 new full-time permanent employees; and obtain required state certifications, a positive cost-benefit analysis, and an incentive agreement with performance and clawback provisions. The credit is limited to the taxpayer’s income tax due and may not exceed the amount certified or provided in the incentive agreement. Unused amounts may be carried forward indefinitely. The incentive is effective for tax years beginning on or after Jan. 1, 2025. Additional terms and conditions apply.

(Reference Arkansas Code 26-51-2901–26-51-2904)