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:

Leading 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 introduces a $1.25 per gallon tax credit for SAF that reduces greenhouse gas emissions by 50%, aiming to significantly boost current minimal SAF production.
Both associations view these tax credits as a crucial step towards meeting national SAF production goals and helping the aviation industry achieve its net-zero carbon emissions targets, with further credit mechanisms in place until 2027.

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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.