Bill Details
S.692 - 119th Congress
Status
Latest action
2025-02-24 - Read twice and referred to the Committee on Finance.
Introduced Date
2025-02-24
Policy Area
Taxation
Committees
View committees (1)
Sponsors
5
0
0
AI Summary This summary was generated by AI from the bill text. AI can get information wrong.
This bill would expand a federal clean fuel tax credit to include a special rate for sustainable fuel used by ships and ferries. In simple terms, it creates a tax incentive for producing certain low-emission marine fuels that can power commercial vessels and ferries. To qualify, the fuel must be a liquid fuel made for use in those vessels, cannot come from palm fatty acid distillates or petroleum, must have zero emissions, and must meet safety or quality standards set by the Treasury Department. The bill would also extend how long this special credit can be used for sustainable vessel fuel, and it would apply only to fuel made after the end of 2025.
- It adds “sustainable vessel fuel” to the clean fuel production credit rules already used for other low-carbon fuels.
- The fuel must be suitable for commercial vessels or ferries and actually sold for that use.
- The fuel must not be made from petroleum or palm fatty acid distillates, and it must have a zero-emissions rate.
- The special credit for this fuel would last until December 31, 2035, and the changes would apply to fuel produced after December 31, 2025.
Official Summaries
No summaries available
Current Full Text
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 692 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 692
To amend the Internal Revenue Code of 1986 to modify the clean fuel
production credit to provide a special rate for sustainable vessel
fuel.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
February 24, 2025
Ms. Hirono introduced the following bill; which was read twice and
referred to the Committee on Finance
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to modify the clean fuel
production credit to provide a special rate for sustainable vessel
fuel.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Sustainable Vessel Fuel Act''.
SEC. 2. SPECIAL RATE UNDER CLEAN FUEL PRODUCTION CREDIT FOR SUSTAINABLE
VESSEL FUEL.
(a) In General.--Section 45Z(a)(3) of the Internal Revenue Code of
1986 is amended--
(1) in the heading, by inserting ``and sustainable vessel
fuel'' after ``sustainable aviation fuel'',
(2) in subparagraph (A), by inserting ``or sustainable
vessel fuel'' after ``sustainable aviation fuel'', and
(3) in subparagraph (B), by striking ``this subparagraph
(A)'' and inserting ``this section''.
(b) Inclusion as Transportation Fuel.--Section 45Z(d)(5) of the
Internal Revenue Code of 1986 is amended--
(1) by redesignating subparagraph (B) as subparagraph (C),
and
(2) by inserting after subparagraph (A) the following new
subparagraph:
``(B) Sustainable vessel fuel.--
``(i) In general.--The term `transportation
fuel' shall include sustainable vessel fuel
which satisfies the requirement under
subparagraph (A)(iii).
``(ii) Definition.--The term `sustainable
vessel fuel' means liquid fuel which--
``(I) is suitable for use as a fuel
in a commercial vessel or ferry (as
such terms are defined in section
4462(a)(4)) and is sold for such use,
``(II) is not derived from palm
fatty acid distillates or petroleum,
``(III) as determined pursuant to
subsection (b)(1), has an emissions
rate of zero, and
``(IV) satisfies the requirements
of any standards which have been
identified by the Secretary pursuant to
clause (iii).
``(iii) Standards.--The Secretary shall
identify any standards as are established by
the American Society for Testing and Materials
(or similar standards organization) with
respect to liquid fuel described in subclauses
(I) through (III) of clause (ii) which the
Secretary determines appropriate to carry out
the purposes of this subparagraph.''.
(c) Termination.--Section 45Z(g) of the Internal Revenue Code of
1986 is amended by inserting ``(or, in the case of transportation fuel
which is sustainable vessel fuel, December 31, 2035)'' after ``December
31, 2027''.
(d) Effective Date.--The amendments made by this section shall
apply to fuel produced after December 31, 2025.
<all>