To provide incentives for the production and use of unconventional aviation fuels.

Amends the Internal Revenue Code of 1986 to allow an unconventional aviation fuel mixture credit. Defines "unconventional aviation fuel mixture" as an aviation-grade fuel consisting of a mixture of unconventional fuel (any liquid fuel derived from coal and any oil produced from shale) and aviation-grade kerosene.

Authorizes the Secretary of Defense to enter into contracts or other agreements to procure liquid fuel derived from coal to meet the fuel requirements of the Department of Defense (DOD), including multi-year contracts for up to 25 years.