Groups urge passage of bill creating blenders tax credit for SAF

By Erin Voegele | May 12, 2022

The National Business Aviation Association and nearly 80 stakeholders sent a letter to Congressional leaders on April 22 advocating for passage of the Sustainable Skies Act, which would create a blender’s tax credit for sustainable aviation fuel (SAF).

“We believe the most important action Congress can take to support the decarbonization of the aviation sector is to enact a blender’s tax credit specifically aimed at incentivizing the production and use of SAF,” the groups wrote.

“SAF is widely considered to be the most critical driver of aviation decarbonization, as electrification and other advanced propulsion technologies are currently infeasible for the medium- and long-haul flights that account for the vast majority of aviation’s GHG emissions,” they continued.

The blenders tax credit contained in the Sustainable Skies Act would start at $1.50 per gallon and be available to blenders of SAF that can demonstrate 50 percent or greater lifecycle GHG emissions reductions when compared to standard jet fuel. An additional 1 cent per gallon could be claimed for each percentage the fuel reduces emissions over 50 percent. That means that SAF that reduces emissions by 70 percent would be eligible for a $1.70 per gallon credit, and that SAF that achieves a 99 percent reduction could claim a $1.99 per gallon credit. The maximum credit would be set at $2.00 per gallon.

The letter stresses that the tax credit “would promote and accelerate investment in the nascent domestic SAF industry while upholding rigorous environmental standards and ensuring that fuels that achieve the greatest reduction in emissions are eligible for the greatest tax incentive.”

The letter is signed by Aerospace Industries Association, Helicopter Association International, Airbus, Honeywell, Air Company, Infinium, Aircraft Owners and Pilots Association, International Air Transport Association, Airline Passenger Experience Association, International Flight Services Association, Air Line Pilots Association, JetBlue, Airlines for America, LanzaJet, Airports Council International –North America, LanzaTech, Air Transport Services Group, Marquis Sustainable Aviation Fuel, Alaska Airlines National Air Carrier Association, Alder Fuels, National Air Transportation Association, Algae Biomass Organization, National Association of State Aviation Officials, American Airlines, National Business Aviation Association, American Association of Airport Executives, Neste, American Express Global Business Travel, NetJets, Association of Flight Attendants -CWA, NetJets Association of Shared Aircraft Pilots, Atlas Air Worldwide, Port of Portland, Avfuel,Port of Seattle/Seattle-Tacoma International Airport, Biotechnology Innovation Organization, Pratt & Whitney, The Boeing Company, Red Rock Biofuels, Bombardier Regional Airline Association, Boom, Renewable Fuels Association, Business Aviation Coalition for Sustainable Aviation Fuel, Rolls Royce, Carbon Engineering, San Francisco International Airport, Cargo Airline Association,  Shell Aviation, Cincinnati/Northern Kentucky International Airport, Signature Aviation, Delta, SkyNRG Americas, DHL, Southwest Airlines, Embraer, Southwest Airlines Pilots Association, FedEx Express, Third Way, Fulcrum BioEnergy, Travelers United, GE Aviation, United Airlines General Aviation Manufacturers Association,  United Parcel Service, Gevo, U.S. Travel Association, Global Business Travel Association, Velocys, Green Plains, VeriJet ,Growth Energy, World Energy, Gulfstream, World Fuel Services, and Hawaiian Airlines.

Additional information is available on the NBAA website