Washington, DC

NBAA welcomes bipartisan bill to restore and extend SAF tax credit

The National Business Aviation Association has welcomed a new bipartisan bill that would restore the full value of the sustainable aviation fuel (SAF) tax credit and extend the incentive for eight years.

The Securing America’s Fuels Act (SAF Act), introduced by Reps. Mike Flood (R-01-NE) and Sharice Davids (D-03-KS), follows congressional passage of legislation earlier this year that extended the 45Z tax credit but reduced its value, rendering many new SAF projects less financially feasible.

The new bill would return the credit to $1.75 per gallon and extend it through 2033 - key steps to scaling domestic production of the low-carbon fuel.

The tax credit helps close the cost gap with conventional jet fuel, enabling producers to bring more SAF to market while creating new home-grown economic opportunities for farmers, rural communities and fuel producers.

“NBAA thanks Reps. Flood and Davids for introducing this measure and understanding SAF’s economic and sustainability benefits,” said NBAA President and CEO Ed Bolen. “Restoring the full credit provides the clarity and stability needed to unlock investment, expand supply and accelerate progress toward our industry’s long-term environmental commitments.”

SAF is a drop-in jet fuel produced from bio-based feedstocks and can reduce lifecycle greenhouse gas emissions by up to 80% over legacy fuels. The fuel is central to business aviation’s commitment to achieve net-zero carbon emissions by 2050.

Beyond SAF, the business aviation community continues to drive a broad range of sustainability innovations - from operational improvements and airspace modernization to emerging propulsion technologies and hybrid-electric systems. Together with strong policy support, these initiatives form the foundation of the industry’s long-term decarbonization strategy.