Bill Introduced To Provide Tax Credit For SAF

Legislation introduced in the U.S. House of Representatives on Thursday would establish a tax credit for sustainable aviation fuel (SAF). Called the Sustainable Skies Act, the bill would provide between $1.50 and $2.00 per each gallon of SAF used as long as the fuel “achieves at least a 50 percent lifecycle greenhouse gas [GHG] emissions reduction in comparison with petroleum-based jet fuel.” If the legislation is enacted, the SAF credit would be available through the end of the decade.

“The Sustainable Skies Act will help spur the private sector investments needed to boost the production, distribution and uptake of SAF,” said General Aviation Manufactures Association (GAMA) CEO Pete Bunce. “A blender’s tax credit will also assist in making SAF a cost-competitive alternative to conventional jet fuel.”

The bill (PDF) was introduced by Representatives Brad Schneider, D-Ill., Dan Kildee, D-Mich., and Julia Brownley, D-Calif. Organizations and companies including Airbus, the Aircraft Owners and Pilots Association (AOPA), American Airlines, Boeing, Delta, FedEx, GAMA, the National Business Aviation Association (NBAA), Pratt & Whitney, Southwest Airlines and United Airlines have already voiced their support. Companion legislation is expected to be introduced in the Senate in the next few days.