AAAA welcomes passage of SAF tax credit 
August 11, 2022
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  • The Alliance for Aviation Across America welcomed the inclusion of a tax credit for sustainable aviation fuel (SAF) in the Inflation Reduction Act (H.R. 5376), which recently passed the U.S. Senate, and will now be considered by the U.S. House of Representatives. 

    “This provision in the Senate bill will help make these pioneering fuels ever-more available, including at the small airports that serve towns and rural communities across the country,” said Selena Shilad, Executive Director for the Alliance. “And, this tax incentive is key to creating green jobs, and helping companies meet their sustainability objectives.” 

    The tax credit, which starts at $1.25 and reaches up to $1.75 per gallon, for each percentage point by which the lifecycle emissions reduction of such fuel exceeds 50%, is effective for four years starting Jan. 1, 2023. 

    The SAF blenders tax credit was initially introduced as part of the Sustainable Skies Act, by Representatives Brad Schneider (D-IL), Dan Kildee (D-MI), and Julia Brownley (D-CA). 

    The aviation sector, including general aviation, has heavily focused on carbon reduction, with a multi-pronged plan for achieving net zero emissions by 2050. The sustainable aviation fuel market size is projected to grow from an estimated $66 million in 2020 to $15.3 billion by 2030. 

    General aviation is a critical resource for communities across the country, supporting more than one million American jobs and an economic impact of $247 billion per year.