Sustainable Skies Act Establishes A $1.50 - $2.00 Per Gallon Blender's Tax Credit

GAMA has praised the introduction of the Sustainable Skies Act in the U.S. House of Representatives by Reps. Brad Schneider (D-Ill.) Dan Kildee (D-Mich.) and Julia Brownley (D-Calif.).

"The general and business aviation industry is steadfast in its commitment to environmental sustainability with advances in aircraft technologies that result in more efficient wing, rotor, fuselage and engine design as well as revolutionary innovations like hybrid and electric aircraft. While we continue to advance these solutions, we also recognize that the increased use of sustainable aviation fuel (SAF) will also play a key role in reducing aviation's CO2 emissions," said Pete Bunce, GAMA President and CEO.

"The Sustainable Skies Act will help spur the private sector investments needed to boost the production, distribution and uptake of SAF. A blender's tax credit will also assist in making SAF a cost-competitive alternative to conventional jet fuel. We applaud the leadership shown by Representatives Schneider, Kildee and Brownley to put forth this tax credit which will help our industry meet our long-standing environmental focus on addressing climate change."

The Sustainable Skies Act establishes a $1.50 - $2.00 per gallon blender's tax credit for sustainable aviation fuel (SAF) that achieves at least a 50 percent reduction in lifecycle greenhouse gas (GHG) emissions compared to conventional jet fuel. The amount of the credit is linked to the SAF's GHG emissions performance. Fuels would earn an additional $0.01/gallon for each percentage point of additional GHG reductions the fuel achieves above 50 percent - a 100 percent reduction would receive the full $2.00 per gallon credit. The tax credit provisions would be in effect until the end of 2030.

In April, GAMA joined a coalition of over 40 aviation industry organizations in calling for the Biden-Harris Administration to include a SAF Blenders Tax Credit in the American Jobs Plan infrastructure package. The tax credit described in the letter closely mirrors what is proposed in the Sustainable Skies Act.

FMI: www.gama.aero