Sustainability and Environment
Industry Orgs Query IRS Over SAF Production Incentives
With two major SAF production tax incentive programs on the horizon, NBAA and other aviation stakeholders are seeking IRS guidance and assurance.
Lab at World Energy SAF production facilty
A letter to the IRS from a group of aviation stakeholders seeks clarification and assurance on the implementation of SAF production tax credit programs to increase the supply of renewable fuel. (Photo: Curt Epstein/AIN)

NBAA has joined with a group of industry stakeholders in a letter seeking clarification from the IRS about the implementation of upcoming incentivization programs aimed at increasing the production of sustainable aviation fuel (SAF).

Starting on Jan. 1, 2023, the SAF Blenders Tax Credit (SAF BTS) will give SAF producers a $1.25 per gallon tax credit for SAF sold as part of a qualified fuel mixture with a lifecycle greenhouse gas (GHG) emissions reduction of at least 50 percent compared to standard jet-A, while the Clean Fuel Production Credit, slated to take effect on Jan. 1, 2025, will apply to all transportation fuels compared to a baseline emissions factor. Fuels such as SAF would be eligible for additional credits of up to $1.75 a gallon for 100 percent GHG reduction.

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