Association Joins Call for Performance-Based SAF Tax Credit
In case you missed it, we wanted to loop you in on NBAA’s latest effort to secure the future of business aviation. NBAA has joined with a broad coalition of aviation industry groups in asking for the inclusion of performance-based measures to spur production of sustainable aviation fuel (SAF) in the Biden-Harris administration’s recently-unveiled American Jobs Plan.
Made from non-petroleum feedstocks, SAF is widely considered to hold the greatest near-term potential for reducing aviation’s climate impact, as it can reduce lifecycle greenhouse gas (GHG) emissions by up to 80%, compared to conventional (petroleum-based) jet fuel, with even greater reductions possible in the future. Despite that impressive figure, as well as an existing $1.00 per-gallon credit for producers and blenders of biomass-derived SAF in the federal tax code, production and availability of the fuel is not meeting current demand.
In a letter to Transportation Secretary Pete Buttigieg, National Climate Advisor Gina McCarthy and National Economic Council Director Brian Deese, the associations call for a $1.50 per-gallon credit for production of SAF.
This performance-based credit system would stimulate SAF production in the U.S. and make the low-carbon fuel more affordable for airlines, general aviation, and other users.
“Business aviation has long been focused on the sustainability of flight, and measures to accelerate the production and use of SAF are key to our emissions-reduction goals,” said NBAA President and CEO Ed Bolen. “We look forward to working with the administration on this priority.”