Coalition formed to advocate for clean fuel tax credit

TL/DR –

A newly formed group named the Sustainable Aviation Fuel (SAF) Coalition plans to lobby lawmakers regarding the extension of a tax credit from the Inflation Reduction Act to increase the production of sustainable aviation fuel. This group consists of nearly 40 major airlines, airports, manufacturers, and biofuel producers. The tax credit, differing from most clean energy tax credits that run for 10 years, is set to expire in 2024; after which, the incentives to produce SAF will be incorporated into the Clean Fuels Production Credit, which will expire in 2027.

Boosting Sustainable Aviation Fuel Production with Extended Tax Credit

Aiming to lobby for an extension of the Inflation Reduction Act tax credit to promote sustainable aviation fuel (SAF) production, a new group has emerged. The SAF Coalition comprises around 40 major players in the aviation and biofuel manufacturing sector.

This initiative comes at a critical time, amidst growing pressure on airlines to meet ambitious emissions reduction goals. However, without increased support from the government, these goals may not be achievable.

Many clean energy tax credits under the IRA of 2022 span 10 years. However, the program promoting the production of this emerging fuel source, which could aid the decarbonization of a major polluting sector, is set to expire in 2024.

After 2024, incentives for SAF production will be included in the Clean Fuels Production Credit, which is planned to sunset in 2027. This transition emphasizes the need for strong advocacy to ensure the support for sustainable aviation fuel production continues to grow.

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