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Tax Credits for Sustainable Aviation Fuel: Higher Rates and Extension until 2033.

This Act aims to increase financial incentives for producers of environmentally friendly aviation fuels (SAF). It reinstates and increases the special rate calculation for the clean fuel production credit specifically for SAF, and extends the credit's availability by four years, until the end of 2033. While directly impacting the aviation industry, these changes could indirectly influence air travel costs and accelerate the shift towards greener energy sources in transport.
Key points
Higher Tax Credits: The special rate calculation for the Clean Fuel Production Credit for Sustainable Aviation Fuel (SAF) is reinstated and increased to encourage its production.
Program Extension: The clean fuel production credit is extended from December 31, 2029, to December 31, 2033.
SAF Definition: To qualify for the higher credit, aviation fuel must meet specific technical standards (ASTM) and must not be derived from palm fatty acid distillates or petroleum.
Effective Date: The amendments apply to fuel produced after December 31, 2025.
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Introduced
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Additional Information
Print number: 119_HR_6518
Sponsor: Rep. Davids, Sharice [D-KS-3]