Industry Applauds House Bill To Restore SAF Credit

A bipartisan bill aimed at restoring the full value of the sustainable aviation fuel (SAF) tax credit and extending the incentive for eight years was introduced yesterday in U.S. Congress. Known as the Securing America’s Fuels Act (SAF Act), it follows legislation passed earlier this year that extended the tax credit but reduced its value, hindering investment in SAF production projects.

Sponsored by representatives Mike Flood (R-Nebraska) and Sharice Davids (D-Kansas), the bill would return the Clean Fuel Production Credit to the previous level of $1.75 per gallon and extend it through 2033—a measure the industry believes will play a significant role in spurring increases in production.

SAF is a jet fuel produced from renewable feedstocks. It is currently approved for use in blends of up to 50% as a drop-in replacement that is fully mixable with conventional jet-A. In its neat, unblended form, SAF can reduce life cycle carbon emissions by more than 80% compared to fossil-based fuel, which makes it a crucial component in business aviation’s commitment to achieve net-zero carbon emissions by 2050.

The restoration of the tax credit is anticipated to help SAF move closer to pricing parity with conventional jet fuel—presently a stumbling block in the widespread adoption of the fuel—and enable increased SAF production, while creating new economic opportunities for farmers, rural communities, and fuel producers.

The new legislation (which still needs to clear the House and the Senate, as well as the White House) was met with accolades from the aviation industry.

“NBAA thanks reps. Flood and Davids for introducing this measure and understanding SAF’s economic and sustainability benefits,” said Ed Bolen, the organization’s president and CEO. “Restoring the full credit provides the clarity and stability needed to unlock investment, expand supply, and accelerate progress toward our industry’s long-term environmental commitments.”

“[SAF] represents one of America’s greatest opportunities—uniting our agricultural, energy, and aviation sectors behind a more secure economic and innovative future,” stated NATA president and CEO Curt Castagna, while urging Congress to pass the measure without delay. “[It] restores a thoughtful policy framework that supports rural communities, fosters domestic job creation, and keeps America competitive in a rapidly growing global market by incentivizing long-term investment in U.S. SAF production.”

“This legislation continues the broad, bipartisan support for SAF in Congress and recognizes SAF’s unique ability to fuel America’s energy dominance while supporting American farmers,” added SAF Coalition executive director Alison Graab.