News

The National Business Aviation Association (NBAA) has welcomed the inclusion of blenders tax credit for producers of sustainable aviation fuel (SAF), as part of the Inflation Reduction Act of 2022, to increase the availability of SAF at general aviation airports and achieve net-zero.
“Through the Business Aviation Commitment on Climate Change, our industry has pledged to achieve net-zero CO2 emissions by 2050, and increasing the availability of SAF at general aviation airports is crucial to achieving our goal,” said Ed Bolen, President and CEO, NBAA.
Passed on Aug. 7 by the U.S. Senate, the budget reconciliation legislation includes a $1.25 per-gallon credit available for each gallon of SAF sold as part of a qualified fuel mixture, if the SAF has a demonstrated lifecycle greenhouse gas (GHG) reduction of at least 50% compared to conventional jet fuel.
The stand-alone SAF tax credit was initially introduced as part of the Sustainable Skies Act. The incentive which increases by one cent for each percentage point by which the lifecycle GHG emissions reduction of such fuel exceeds 50%, up to $1.75 per gallon – would be effective for two years beginning Jan. 1, 2023.
After Jan. 1, 2025, the new Clean Fuel Production Credit (CFPC) would apply to all transportation fuels, with an enhanced baseline credit for SAF. The CFPC is based on the level of GHG reduction performance of a fuel versus a baseline emissions factor. Under this system, SAF is eligible for a credit of up to $1.75 per gallon for fuels with a 100% GHG reduction, with lower credits for fuels demonstrating lower levels of GHG reduction. The CFPC would expire on Dec. 31, 2027, unless extended by Congress.
“Establishing a robust federal tax credit for SAF is the single most important thing policymakers can do to increase production and availability, and NBAA applauds the members of Congress and staff who tirelessly worked to advance this legislation,” Bolen said.
The Inflation Reduction Act will now move to the U.S. House for debate and a final vote reconciliation. If passed, the legislation will go to the president to be signed into law.
Founded in 1947 and based in Washington, DC, the National Business Aviation Association (NBAA) is the leading organization for companies that rely on general aviation aircraft to help make their businesses more efficient, productive and successful.
News
News
YE 2022
Civil Helicopters Helicopter Spotlight: Airbus H175 See all articles2022 Q4
Business Aviation New, Big Falcons Suit Asia-Pacific Business Aviation Supporting Modern Time Machines See all articlesYE 2022
Business Aviation New, Big Falcons Suit Asia-Pacific Business Aviation Sino Jet Tops Fleet Size Rankings in Asia Pacific For The Fourth Year See all articlesYE 2022
Business Aviation Luxaviation CEO Sees Deficiencies in Seemingly Buoyant Market Business Aviation Supporting Modern Time Machines See all articlesYE 2022
Business Aviation DC Aviation Al-Futtaim Celebrates Ten Years in the Middle East See all articles2022
Business Aviation HKBAC: Marching towards its 25th Year Business Aviation Sino Jet Attends COP27 and Hopes to Lead the Way Towards Sustainable Aviation Practices See all articlesYE 2021
Business Aviation Market Trends – Business Jet Fleet Report YE 2021 Business Aviation 10 Year Forecast See all articlesYE 2021
Civil Helicopters Leasing Market – Civil Helicopter Fleet Report YE 2021 Civil Helicopters EMS Market – Civil Helicopter Fleet Report YE 2021 See all articles© Global Sky Media – 2023 | All Rights Reserved
Sorry for the intrusion. We really hope you’ve found our content interesting and valuable.
Did you know that you can sign up for an account for free? If you do this then you can choose the topics and companies that are most relevant to you so that we can deliver you a personalized website experience.
Please create an account to download our reports and enjoy additional website features as well
Did you know that you can sign up for an account for free? If you do this then you can choose the topics and companies that are most relevant to you so that we can deliver you a personalized website experience.
ALREADY A MEMBER? LOGIN HERE