Industry Pushing for Government Aid for SAF

December 20, 2021 — As politicians are working on their “Build Back Better” plan, many in the aviation sector are insistent that the industry will not meet the Biden Administration’s 2050 net-zero emissions target without a boost in funding. Sustainable aviation fuel (SAF) will play a major role in decarbonizing the airline industry, but it’s current production capacity and cost are a hinderance to more widespread adoption. Currently, the House-passed bill includes $1 billion for an alternative fuel and low-emission aviation technology program. This would fund grants and cost-sharing agreements with companies producing SAF and other technologies. The bill also includes a tax credit of $1.25 per gallon to producers of SAF, if the product reduces carbon emissions by at least 50%. Many see this tax credit as a certainty of investment within the industry.

More information about the “Build Back Better” SAF credit can be found here.

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