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Tax Credits for Sustainable Aviation Fuel

This act introduces tax credits for companies that produce and use aviation fuel significantly reducing greenhouse gas emissions. The goal is to encourage the development and adoption of more environmentally friendly aviation solutions, potentially leading to cleaner air and combating climate change. Citizens may experience indirect benefits related to improved environmental quality.
Key points
Aviation companies and fuel producers can receive a tax credit of $1.50 per gallon of sustainable aviation fuel.
An additional credit of $0.01 for every percentage point of emission reduction above 50% (up to $0.50) for more environmentally friendly fuels.
Fuel must meet strict standards for greenhouse gas emission reduction (at least 50% less than traditional jet fuel).
The act is set to be in effect until the end of 2031, supporting the development of green aviation technologies.
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Additional Information
Print number: 117_S_2263
Sponsor: Sen. Brown, Sherrod [D-OH]
Process start date: 2021-06-24