The SAF Coalition has formed, representing nearly 40 major airlines, airports, manufacturers and biofuel producers, lobbying Congress to provide a larger and longer-lasting tax incentive for sustainable aviation fuel (SAF).
Currently, there are two SAF-related tax credits from the Inflation Reduction Act:
1. The 40B tax credit, which expires at the end of 2024.
2. The 45Z clean fuels tax credit, which starts in 2025 and lasts for three years.
The coalition argues that the 45Z credit has two main issues:
· It doesn’t last long enough.
· Depending on the carbon intensity of the fuel, it may not be as valuable as the expiring 40B credit.
In a letter to the House Ways and Means Committee, the coalition is calling for:
· Extension of the 45Z credit beyond its current three-year duration.
· Enhancement of the credit’s value to support long-term investment in U.S. SAF leadership.
The coalition believes these changes are necessary to accelerate the development and deployment of sustainable aviation fuels.
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