Long-term tax credits could be the key to kick starting momentum for a robust sustainable aviation fuel (SAF) market, according to a Department of Transportation official.
Tax Credits May Help Bridge SAF Price Gap
Key Takeaways:
- Long-term tax credits, particularly a blender's tax credit, are considered crucial by the Department of Transportation to bridge the cost gap between conventional and sustainable aviation fuel (SAF) and stimulate market growth.
- The aviation industry, including business aviation and major airlines, is actively seeking SAF to reduce greenhouse gas emissions by up to 80% and meet climate commitments, advocating for the proposed tax credit.
- The Biden administration has challenged the industry to produce 3 billion gallons of cost-competitive SAF by 2030, aiming for a carbon-free aviation sector by 2050, with tax incentives seen as a key mechanism to achieve these goals.
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