SAF Act

Bigger sustainable aviation fuel credit

If enacted, qualifying fuel producers would be able to claim a higher clean fuel production tax credit for sustainable aviation fuel (SAF). The bill would set the SAF credit at $0.35 per gallon for fuel made at qualified facility type A and $1.75 per gallon for facility type B. The new rates would apply to fuel produced after December 31, 2025, and the credit would be extended through December 31, 2033. To qualify, the fuel would have to be sold for aircraft use, meet ASTM D7566 or the Fischer Tropsch provisions of ASTM D1655, Annex A1, and not be derived from palm fatty acid distillates or petroleum. The bill would also update an Internal Revenue Code cross-reference to reflect the new rates.