Log-in here if you’re already a subscriber
Bipartisan legislation introduced today in the U.S. House of Representatives would expand a lucrative tax credit for the production of biofuels to include sustainable aviation fuel (SAF). If passed, the bill could be a win for airlines seeking lower-cost SAF after Congress signed a law removing the same incentive in the July One Big Beautiful Bill Act (OBBBA) — although how “sustainable” that fuel would be is still unclear.
The aptly named Securing America’s Fuels (SAF) Act would reinstate a SAF-specific bonus subsidy previously included in the Clean Fuels Production Credit established by the 2022 Inflation Reduction Act (IRA), known as “45Z” for the relevant section of the Internal Revenue Code in which it appears. The bill would allow for credits up to $1.75 per gallon of certain SAF blends created from qualifying feedstocks, the same cap originally included in the IRA.
Related: The politics of ethanol are coming to aviation
The bipartisan legislation was authored by Rep. Sharice Davids, Democrat of Kansas, and is sponsored by Republican Rep. Tracey Mann, also of Kansas, Democratic Rep. Troy Carter of Louisiana and Republican Rep. Mike Flood of Nebraska. It has been endorsed by Airlines for America as well as several major ethanol, corn and sugar cane organizations who would stand to benefit from the subsidies whose emissions reduction requirements were relaxed by Congress in the OBBBA.
Continue ReadingSubscribe to Continue Reading
Our award-winning aerospace reporting combines the highest standards of journalism with the level of technical detail and rigor expected by a sophisticated industry audience.
- Exclusive reporting and analysis on the strategy and technology of flying
- Full access to our archive of industry intelligence
- We respect your time; everything we publish earns your attention
