New coalition formed to advocate for clean fuel tax credit

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Lobbying for Sustainable Aviation Fuel Tax Credit

A coalition of major stakeholders in the aviation industry is advocating for the extension of the Inflation Reduction Act tax credit to support the production of sustainable aviation fuel (SAF).

The SAF Coalition Initiative

The SAF Coalition, comprising around 40 key players including airlines, airports, manufacturers, and biofuel producers, has joined forces with the common goal of promoting sustainable aviation fuel. This collaboration comes at a crucial juncture for the industry, as airlines are striving to meet ambitious emissions reduction targets but require additional legislative support to achieve their objectives.

Expiration of Current Program

In contrast to the typical 10-year duration of clean energy tax credits under the IRA of 2022, the specific initiative aimed at accelerating the production of sustainable aviation fuel is set to expire by the end of 2024. This looming deadline underscores the urgency of the situation, as the aviation sector seeks to adopt a more environmentally-friendly approach through the utilization of SAF.

Transition to Clean Fuels Production Credit

Once the current program concludes, the incentives for sustainable aviation fuel production, commonly referred to as SAF, will be integrated into the Clean Fuels Production Credit. However, this transition is temporary, as the Clean Fuels Production Credit itself is scheduled to expire in 2027. Therefore, it is imperative for lawmakers to take action to ensure the continuity of support for the production of sustainable aviation fuel beyond the upcoming deadlines.

Read More of this Story at – 2024-04-29 17:41:00

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