The Sustainable Vessel Fuel Act modifies the federal clean fuel production credit to include sustainable vessel fuels alongside sustainable aviation fuels. The bill defines sustainable vessel fuel as liquid fuel suitable for commercial vessels and ferries that is not derived from palm oil or petroleum and has zero emissions. Producers of qualifying sustainable vessel fuels would receive the same tax credit as sustainable aviation fuel producers, with an extended deadline of December 31, 2034 to claim credits, compared to the earlier December 31, 2027 deadline for other clean fuels. The legislation takes effect for fuel produced after December 31, 2023. This bill incentivizes the maritime shipping industry to transition to cleaner fuel alternatives by providing the same financial benefits that the federal government already offers to the aviation sector.
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