April 15, 2021

The White House this week redoubled its commitment to a tax credit to promote the production, availability and use of sustainable aviation fuel (SAF) – a policy proposal that enjoys support from NBAA and a host of aviation stakeholders, as well as a growing, bipartisan group of lawmakers on Capitol Hill.

A drop-in, low-carbon fuel derived from sustainable feedstocks, SAF is capable of reducing lifecycle greenhouse gas (GHG) emissions by up to 80% compared to conventional jet fuel. The administration first signaled its support for an SAF tax credit last year, and Congress has introduced legislation to promote the idea, known as a blender’s tax credit.

Last year, Reps. Brad Schneider (D-10-IL), Dan Kildee (D-5-MI) and Julia Brownley (D-26-CA) unveiled the Sustainable Skies Act (H.R. 3440), which would create a new, 10-year performance-based tax credit for production of SAF achieving a 50% or greater reduction in lifecycle GHG emissions, capped at a $2 per gallon credit on production of SAF demonstrating a 100% emissions reduction.

A similar blender’s tax credit bill (S.2263), introduced last year by Sen. Sherrod Brown (D-OH), has the support of Sens. Maria Cantwell (D-WA), Raphael Warnock (D-GA), Patty Murray (D-WA) and Debbie Stabenow (D-MI).

Both the House and Senate bills are still under consideration.

“The SAF blender’s tax credit remains the most effective means to incentivize the production of these game-changing fuels, as part of our industry’s focus on achieving net-zero carbon emissions by 2050,” said NBAA President and CEO Ed Bolen. “We are pleased to see growing support for this important policy initiative, and we will continue to work with all stakeholders to make it a reality.”