House Passes Bill That Includes SAF Tax Credit

If ‘Build Back Better’ is passed, users of sustainable aviation fuel could receive up to $1.75 per gallon.

Ashley Barajas

Friday, November 19, 2021 at 05:46 PM ET

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To receive the credit, the operator must use a fuel that’s part of a qualified fuel mixture. Credit: Adobe Stock

Key Takeaways:

The U.S. House passed Build Back Better legislation includes a new blenders tax credit for Sustainable Aviation Fuel (SAF), offering $1.25 per gallon (up to $1.75) for fuels demonstrating at least a 50% greenhouse gas reduction, effective after December 31, 2022.
The National Business Aviation Association (NBAA) strongly advocated for this tax credit, recognizing its potential to reduce aviation's near-term GHG emissions and incentivize SAF production.
Beyond the blenders credit, the bill allocates $300 million to the Department of Transportation for low-emission aviation and SAF projects, and $225 million to NASA for sustainable aviation research and development.

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A bill that recently passed the U.S. House as part of its Build Back Better legislation contains a clause backing a tax credit for sustainable aviation fuel (SAF). This tax credit has been strongly advocated for by the National Business Aviation Association (NBAA).

NBAA’s president and CEO Ed Bolen expressed his support for the passage. “The House passage of this blenders tax credit recognizes SAF’s potential to greatly reduce the aviation industry’s near-term GHG emissions, and validates NBAA’s repeated calls to incentivize the production of this drop-in fuel to attract more producers and make SAF more accessible to business aviation users.”