Aviation Industry Groups, NATA and NBAA, Welcome SAF Tax Credit

The National Air Transportation Association (NATA) and the National Business Aviation Association (NBAA) have both offered their support for the latest U.S. Senate bill that benefits their respective members through tax provisions for sustainable aviation fuel (SAF) production.

Michael Wildes

Tuesday, August 09, 2022 at 05:25 PM ET

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If it becomes law, the stand-alone SAF tax credit will become effective for two years beginning January 1, 2023. [Adobe Stock Photos]

Key Takeaways:

Aviation organizations NATA and NBAA support the U.S. Senate's Inflation Reduction Act of 2022 for its provisions benefiting Sustainable Aviation Fuel (SAF) production.
The bill provides a $1.25 per gallon tax credit for SAF that demonstrates at least a 50% reduction in greenhouse gas emissions compared to conventional jet fuel.
This incentive is viewed as a crucial step to accelerate SAF production, help the industry achieve net-zero carbon emissions goals, and meet national targets for SAF domestic output.

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The Senate approved the Inflation Reduction Act of 2022 on Monday, which allocates a $1.25 per gallon tax credit for each gallon of SAF sold. SAF producers must demonstrate that the fuel can cut greenhouse gas (GHG) emissions by 50 percent as part of a qualified mix compared to regular jet fuel.