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Read. Follow. Verify.Kentucky creates tax credits for alternative jet fuel producers and feedstock providers
Last action · February 10, 2026: to Appropriations & Revenue (H)Sponsors: David Meade and 17 others
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What This Bill Proposed
Kentucky establishes a ranging from $0.50 to $2.50 per gallon for alternative jet fuel producers and feedstock providers for taxable years 2029 through 2034. Eligible taxpayers must apply annually by January 15, and the state caps total certified credits at $20 million annually.
Qualifying agricultural producers, fuel blenders, and fuel refiners can offset state tax liabilities up to $2 million per taxpayer annually, while total state tax revenue reductions are capped at $20 million per calendar year.
- The Kentucky General Assembly is the state legislature responsible for enacting tax laws and appropriations. context
- Alternative jet fuels are synthetic or biomass-derived aviation fuels designed to reduce greenhouse gas emissions compared to conventional petroleum jet fuel. context
Who It Would Have Affected
Groups the bill's text would have affected, as described in the record. Being affected is not a position for or against it.
Alternative jet fuel producers
Eligible entities producing alternative jet fuel or blending synthetic components can claim per-gallon tax credits against state taxes.
Feedstock providers
Entities manufacturing eligible agricultural feedstocks or synthetic blending components can claim a $0.50 per gallon tax credit.
Department of Revenue
The department must promulgate administrative regulations, review annual applications, issue credit certifications, and report data to the legislature.
Key Facts
- Establishes a tax credit for taxable years beginning on or after January 1, 2029, and before January 1, 2035.
- Provides a credit rate of $0.50 per gallon to feedstock providers supplying eligible feedstocks or synthetic blending components.
- Provides $1.50 per gallon to alternative jet fuel producers processing eligible feedstocks or blending synthetic components with conventional jet fuel.
- Provides $2.00 per gallon for producing agriculturally based alternative jet fuel.
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- Provides $2.50 per gallon for producing agriculturally based alternative jet fuel using feedstocks produced inside Kentucky.
- Caps the total credit allowed for feedstock providers and standard producers at $2 million per taxpayer per taxable year.
- Caps the aggregate total of all credits certified by the state at $20 million in any calendar year, with pro rata apportionment if exceeded.
- Prohibits carrying forward the tax credit to other taxable years.
- Requires eligible taxpayers to submit an application to the department by January 15, 2030, and each January 15 thereafter.
- Mandates that the department review applications by February 15 and issue certifications by March 1 of each year.
- Requires the department to report annual tax credit statistics to the Legislative Research Commission starting November 1, 2030.
Frequently Asked Questions
Who is eligible to claim the alternative jet fuel tax credit?
What is the maximum tax credit an individual taxpayer can receive in a year?
Can unused tax credits be carried forward to future years?
What else do you want to know?
News Coverage
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Votes, people, money & the original sourceWhere This Stands
This bill did not become law - Died at adjournment · in House committee.
Procedural history
2 actions- Feb 10, 2026HouseCommitteeto Appropriations & Revenue (H)
- Feb 3, 2026HouseIntroducedintroduced in House to Committee on Committees (H)
Version history
Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.
View official text →Lobbying Activity
No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.
Full breakdown
Who this bill affects and the strongest case for and against it, written only from the bill’s own text.
Sponsors
Show 13 more sponsors
Discoveries
Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.
Creation of Aviation Biofuel Incentives
Kentucky introduces structured tax preferences specifically targeting agriculturally derived alternative jet fuel production and feedstock supply chains.
Connected Entities
Sources
apps.legislature.ky.gov
Analysis Score
0–100- Significance20Lowered because this bill did not pass (its text scored 75)
- Controversy35Intensity of disagreement among stakeholders
- Entertainment5Compellingness for a non-policy-wonk reader
- Buzz30Current news / social attention level
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