The US Senate passed the Inflation Reduction Act, 51-50, after Vice President Kamala Harris provided the tie-breaking vote. The bill contains five years of dedicated Sustainable Aviation Fuel tax provisions aimed at incentivizing production of the renewable jet fuel.
The climate, healthcare and tax package now will move to the US House of Representatives, and the House is expected to take up the legislation on Friday. The voting was on a party-line basis, and the final hours were marked by tense negotiations with Senator Kyrsten Sinema as well as a flock of amendments. Senate Republicans did, with some Democratic support, strip out some health care provisions — but the climate package elements remained in place.
Originally, a dedicated SAF Blender’s Tax Credit to stimulate investment in the nascent industry and provide economic parity with other renewable fuels emerged in the Sustainable Skies Act introduced in 2021. A coalition of industry stakeholders worked to bring two years of such tax credits into the Inflation Reduction Act of 2022, valued at $1.25-$1.75 per gallon depending on percentage of lifecycle greenhouse gas emissions compared to fossil-based jet fuel. Beginning in 2025, the legislation creates three years of a Clean Fuel Production Credit with an enhanced value for SAF of up to $1.75 per gallon.
Tags: Aviation FuelTax, Climate Package, Sustainable Aviation, US Senate
Recent Posts
Huangpu Wenchong receives AIP from CCS for ships using methanol and ammonia
Climate change will cause India’s GDP to decline by 24.7% by 2070: ADB
Masdar and EMSTEEL complete project using green hydrogen to produce steel
DNV Grants HHI AiP for ammonia DF large container vessel
S Korea achieves milestone with first simultaneous operations of methanol bunkering
Glovis Dual Fuel LNG RORO Carrier Docks at Hambantota International Port
AM Green entrusts John Cockerill with India’s largest electrolyzer order
Enough refining capacity in country to meet domestic needs: Puri