NATA and NBAA Support New Legislation to Incentivize SAF Production
/The National Business Aviation Association (NBAA) and the National Air Transportation Association (NATA) welcome the introduction of the Sustainable Skies Act, which creates a performance-based blender’s tax credit to incentivize the production and use of sustainable aviation fuel (SAF), an alternative to conventional jet fuel that will ensure real reductions in the aviation sector’s global greenhouse gas (GHG) emissions.
Specifically, the bill would establish a long-term blender’s tax credit ranging from $1.50/gallon up to $2.00/gallon for fuels that achieve a 100% GHG emissions reduction.
SAF is a low-carbon synthetic jet fuel derived from sustainable feedstocks, including cellulosic biomass, wastes and residues, waste steel mill gases and captured CO2, which can be used safely in any turbine-powered aircraft. SAF potentially can reduce lifecycle GHG by up to 80% compared to conventional jet fuel and is considered pivotal to achieving the aviation industry’s goal of a 50% net reduction in CO2 emissions in 2050.
Despite its benefits, the scalability of SAF is currently difficult, and considerably more expensive, than conventional jet fuel. Through a dedicated federal tax credit, similar to those applied to other renewable fuels early in their development, the production of SAF can be accelerated, and the fuel can become commercially viable.
Review a letter of support from stakeholders.