SAF Act

Key Points

• A group of Senators introduced a bill to help companies that make cleaner fuel for airplanes. This sustainable aviation fuel is made from renewable materials rather than traditional oil.
• The bill would increase the tax credit for making this fuel. For the most efficient producers, the credit would jump from $1.00 to $1.75 per gallon, making it much cheaper to produce.
• The plan extends these tax breaks for four extra years. Instead of stopping in 2029, the government would continue providing these financial incentives until the end of 2033.
• To get the tax credit, the fuel must meet specific safety and quality rules. It also cannot be made from petroleum or certain types of palm oil that are considered harmful to the environment.
• This policy is designed to lower the carbon footprint of flying. Since large planes cannot easily run on batteries, the government wants to make it more affordable for airlines to switch to cleaner liquid fuels.

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