The National Air Transportation Association (NATA) released the following statement on President Joe Biden’s signing of the Inflation Reduction Act of 2022, which includes five years of dedicated Sustainable Aviation Fuel (SAF) tax provisions aimed at incentivizing production of the renewable jet fuel.
“The sustainability measures included in the Inflation Reduction Act of 2022 represent a critical breakthrough in the business aviation industry’s goal to achieve net-zero carbon emissions by the year 2050. The SAF Blender’s Tax Credit and Clean Fuel Production Credit that President Biden has signed into law represent a five-year down payment on the policies necessary to scale up SAF production in line with industry demand. The National Air Transportation Association thanks the United States Congress and the Biden Administration for taking these important first steps toward a vibrant domestic SAF industry that will stimulate economic growth while increasing our nation’s energy security and environmental sustainability. We encourage government leaders to continue to enact sound legislative and regulatory policy to foster the industry’s long-term development,” stated NATA Vice President of Government Affairs, Karen Huggard.
NATA has long advocated for creation of a dedicated SAF Blender’s Tax Credit to stimulate investment in the nascent industry and provide economic parity with other renewable fuels. The Association endorsed the Sustainable Skies Act (S. 2263 and H.R. 3440) introduced in 2021, then worked with a comprehensive coalition of aviation industry stakeholders to encourage the inclusion of similar provisions in broader spending proposals. The Inflation Reduction Act of 2022—which financial analysts assert will drive the federal deficit skyward, spike inflation, and devastate America’s middle-class—includes two years of such tax credits, valued at $1.25-$1.75 per-gallon depending on percentage of lifecycle greenhouse gas emissions compared to fossil-based jet fuel. Beginning in 2025, the legislation creates three years of a Clean Fuel Production Credit with an enhanced value for SAF of up to $1.75 per gallon.
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