Bills Seek To Boost SAF Tax Credit, Ease Cert Pains

Two new bills on Capitol Hill are aiming to restore tax credits for sustainable aviation fuel (SAF) and boost the aircraft type certification process to help pave the way for new technologies such as advanced air mobility.

Introduced in the Senate by Sen. Jerry Moran (R-Kansas) with co-sponsors representing both sides of the aisle, the Securing America’s Fuel Act (S.3759) would return the tax credit for SAF production to $1.75 per gallon and extend it through 2033. This was the companion bill to the SAF Act (H.R.6518) introduced last year in the House of Representatives by Reps. Mike Flood (R-Nebraska) and Sharice Davids (D-Kansas).

Congress extended a tax credit for a broader swath of sustainable fuels but reduced the value. The SAF Act is intended to close the gap, according to NBAA. “Restoring the full credit creates the stability needed to unlock investment, scale production, and accelerate progress toward our industry’s long-term sustainability goals,” said NBAA president and CEO Ed Bolen.

NBAA praised the introduction of House and Senate bills to help foster a more transparent and streamlined certification process. Also attracting support from both sides of the aisle, the Aviation Innovation and Global Competitiveness Act aims to make aircraft certification more predictable by setting timelines, providing clear delegation of routine tasks, streamlining the process, and ensuring adequate government resources to support it. In addition, it seeks to ease paperwork requirements and directs that only novel or complex issues trigger additional review steps.

“The market for AAM in the U.S. is expected to reach $115 billion annually by 2035, potentially creating almost 300,000 jobs, and this legislation is critical to ensuring the U.S. aerospace industry remains a global leader,” Bolen said.

The Senate version is co-sponsored by Senators Peter Welch (D-Vermont), Ted Budd (R-North Carolina), Ben Ray Luján (D-New Mexico), John Curtis (R-Utah), Alex Padilla (D-California), Cynthia Lummis (R-Wyoming), Tim Sheehy (R-Montana), Jerry Moran (R-Kansas), and Todd Young (R-Indiana). Meanwhile, the House bill was introduced by House aviation subcommittee chairman Troy Nehls (R-Texas), along with Jimmy Panetta (D-California), Jay Obernolte (R-California), and André Carson (D-Indiana).