SAF Bill Would Restore, Extend Production Credit

Legislation seeks long-term stability for SAF producers.

SAF
[Credit: Karolis Kavolelis | Shutterstock]
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Key Takeaways:

  • Bipartisan House lawmakers introduced the "Securing America’s Fuels Act" to reinstate and extend a specific production tax credit for sustainable aviation fuel (SAF).
  • The legislation aims to restore the SAF-specific rate within the 45Z Clean Fuel Production Tax Credit to $1.75 per gallon and extend it through 2033.
  • This act seeks to provide long-term stability and clear guidance for SAF producers, developers, and agricultural suppliers, fostering domestic fuel production and innovation.
  • The bill has garnered support from lawmakers and key aviation industry groups, who emphasize its role in unlocking investment and accelerating environmental goals.
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A bipartisan group of House lawmakers introduced legislation Tuesday to reinstate and extend the sustainable aviation fuel (SAF) production credit. Supporters say the move aims for clearer long-term guidance for producers of SAF, along with related industries.

The Securing America’s Fuels Act would restore the SAF-specific rate within the 45Z Clean Fuel Production Tax Credit, returning the value to $1.75 per gallon for qualifying facilities and extending the credit through 2033. The measure follows recent federal budget changes that maintained the broader clean fuel credit but removed the SAF bonus rate.

According to the bill’s sponsors, the updated incentive structure is aimed at supporting domestic fuel production and offering additional stability for developers and agricultural suppliers.

“America is on the cusp of the next great biofuels revolution,” Rep. Mike Flood (R-NE-01) said. “The Securing America’s Fuels Act is yet another way Congress can grow our bio economy and encourage innovation that creates great jobs across rural America.”

Rep. Sharice Davids (D-KS-03) said the act is intended to ensure “clean fuel production incentives are strong and long-term so businesses, farmers, and innovators can plan for the future with confidence.”

Industry groups, including Airlines for America, the Sustainable Aviation Fuel Coalition and the National Business Aviation Association, voiced support for the bill’s introduction. The legislation arrives as SAF developers continue efforts to scale production of lower-carbon fuel that can be used with existing aircraft and infrastructure.

NBAA President and CEO Ed Bolen said in a release that 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.”

Matt Ryan

Matt is AVweb's lead editor. His eyes have been turned to the sky for as long as he can remember. Now a fixed-wing pilot, instructor and aviation writer, Matt also leads and teaches a high school aviation program in the Dallas area. Beyond his lifelong obsession with aviation, Matt loves to travel and has lived in Greece, Czechia and Germany for studies and for work.
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