september2022 - 6

Editor's Note
JOSH SMITH
josh@AviationPros.com
+1 920-563-1644
LinkedIn
Support for SAF
The Inflation Reduction Act includes tax credits targeting sustainable
aviation fuel and encouraging further adoption of the renewable fuel.
A
mong its objectives, the Inflation Reduction Act
that President Joe Biden recently signed into law
aims to reduce greenhouse gas emissions produced
in the United States. The $430 billion bill,
also known as H.R. 5376, intends to promote clean energy and
includes five years of dedicated sustainable aviation fuel (SAF)
tax provisions intended to encourage the production of the
renewable fuel.
This support for SAF production has been applauded by key
stakeholders in the aviation community.
The National Air Transportation Association (NATA), for
example, released a statement noting that the organization
has 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 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, " Karen Huggard, vice president of government affairs
at NATA, said in the statement after the bill's passage.
After the bill was signed into law, the National Business
Aviation Association (NBAA) noted in a statement that as of
Jan. 1, 2023, a $1.25 per gallon credit will be available for each
gallon of SAF sold as part of a qualified fuel mixture with a
demonstrated lifecycle greenhouse gas (GHG) reduction of at
least 50 percent compared to conventional jet fuel. The standalone
SAF tax credit increases by one cent for each percentage
point by which the lifecycle GHG emissions reduction of such
fuel exceeds 50 percent, up to $1.75 per gallon.
" NBAA has long advocated for this blender's tax credit
as a vital step in fulfilling our industry's pledge to achieve
net-zero CO2 emissions by 2050 under the Business Aviation
Commitment on Climate Change, " said Ed Bolen, NBAA president
and CEO. " Implementation of this credit marks genuine
6 || Ground Support Worldwide || September 2022
progress toward increasing SAF production, promoting greater
availability at general aviation airports and reducing costs
to end users. "
The bill also
includes an extension
on a 50-centsper-gallon
tax
credit for alternative
fuels and
fuel mixtures; a
$1-per-gallon tax
credit for biodiesel
and renewable
diesel and an
extension of the
$1.01-per-gallon
income tax credit
for second-generation
biofuel proImplementation
of this credit
marks genuine progress
toward increasing SAF
production, promoting greater
availability at general aviation
airports and reducing costs to
end users.
- Ed Bolen
NBAA president and CEO
duction through 2024, according to Alder Fuels.
" Public-private partnership is integral to scaling our
renewable energy transition and this legislation represents a
significant step forward. Rapid deployment of new biocrude
pathways that can scale SAF production is critical to our sustainable
future, " Alder Fuels CEO Bryan Sherbacow said after
the U.S. Senate passed H.R. 5376.
As a drop-in solution, the idea of using SAF to reduce GHG
emissions has already gained momentum across the aviation
industry. In many cases, SAF is already in use. However,
producing enough SAF to make a significant impact has been
a challenge.
Over the last several years, the airline industry and renewable
fuel producers have been seeking federal policy to promote
the increased production of SAF to make it more widely
available. The Inflation Reduction Act is a notable success in
achieving this government support.
https://www.linkedin.com/in/josh-smith-9309557/
september2022

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