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

Verified

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 a bill including a blenders tax credit for sustainable aviation fuel (SAF), a provision strongly advocated for by the National Business Aviation Association (NBAA).
The tax credit offers $1.25 per gallon for SAF that demonstrates at least a 50% reduction in lifecycle greenhouse gas emissions, with potential increases up to $1.75 per gallon based on higher emission reductions, effective after December 31, 2022.
Additionally, the bill allocates $300 million to the Department of Transportation for low-emission aviation technologies and SAF infrastructure, provides $225 million for NASA's sustainable aviation research, and introduces a Clean Fuel Production Credit for domestic SAF producers starting in 2027.

See a mistake? Contact us.

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.”