Leading US aviation industry experts have welcomed new tax incentives which will encourage the adoption of sustainable aviation fuels (SAF).
The Inflation Reduction Act of 2022, approved by the US senate on Monday, will aim to address the ongoing inflation crisis by allocating $369 billion to reducing greenhouse gas emissions and investing in renewable energy.
Sustainable aviation fuels
Under the new bill, airlines will be provided with a $1.25 per gallon tax credit for each gallon of SAF sold. sustainable aviation fuels (SAF) producers will have to demonstrate that their fuels can help cut greenhouse gas (GHG) emissions by 50 percent as part of a qualified mix compared to regular jet fuel.
National Air Transportation Association
NATA released a report on Sunday saying the five-year tax provision will be a good incentive for producing renewable jet fuel and accelerating the industry’s progress to net-zero carbon emissions.
“The SAF tax credits…are a crucial first step toward meeting the Biden administration’s SAF Grand Challenge goal of three billion gallons of domestically produced SAF by 2030,” told National Air Transportation Association (NATA) president and CEO Timothy Obits.
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National Air Transportation Association (NATA) applauds the US Senate for taking action to incentivize SAF production, and we encourage Congress to work just as diligently to equip federal agencies, including EPA, with the necessary tools to support SAF production in line with industry needs,”
“Establishing a robust federal tax credit for SAF is the single most important thing policymakers can do to raise production and availability,” told Bolen.
“Through the Business Aviation Commitment on Climate Change, our industry has pledged to achieve net-zero CO2 emissions by 2050, and boosting the availability of SAF at general aviation airports is crucial to achieving our goal.”
The aerospace industry has been continually raving about the prospects of Sustainable Aviation Fuels being adopted as airlines look to curve their carbon emissions.
As Tommaso Baliani explained for Travel Radar, SAFs are bio-fuels with a very similar chemical structure to the traditional aviation jet fuel, but it with 80% lower carbon emissions.
They are produced by processing operated cooking oil, feedstock, and miscellaneous byproducts of many different productions from different industries that process organic products, other than products from the so-called “energy crops.”
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