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:
- Sustainable Aviation Fuel (SAF) is crucial for decarbonizing aviation but is currently too expensive; long-term tax credits, such as a blender's tax credit, are proposed by the Department of Transportation as essential to bridge the price gap and establish a robust market.
- The aviation industry, including business aviation and major airlines, is actively embracing and demanding SAF, recognizing its potential to reduce greenhouse gas emissions by up to 80 percent.
- Industry stakeholders are urging Congress to enact performance-based SAF tax credits to scale up supply and enhance cost-competitiveness, aiming to make SAF "the new normal" and achieve a carbon-free aviation sector by 2050.
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