NBAA Supports Bipartisan Senate Bill to Restore and Extend SAF Tax Credit

The National Business Aviation Association welcomed a bipartisan Senate bill that would restore the full value of the sustainable aviation fuel tax credit and extend the incentive for eight years.

The legislation, titled the Securing America’s Fuels Act, would return the credit to $1.75 per gallon and extend it through 2033, steps the association called essential to scaling domestic production of low-carbon aviation fuel.

The Senate measure is co-sponsored by Senators Jerry Moran, Catherine Cortez Masto, Joni Ernst, and Amy Klobuchar and serves as a companion to the House version introduced last year by Representatives Mike Flood and Sharice Davids.

Both proposals follow congressional action in 2025 that extended the 45Z tax credit but reduced its value, a change industry groups said made many new SAF projects less financially viable. The incentive is designed to narrow the cost gap between SAF and conventional jet fuel, enabling producers to bring greater volumes to market while supporting economic growth in rural communities and among fuel producers.

NBAA President and CEO Ed Bolen said restoring the full credit would create the stability needed to accelerate investment and expand production capacity. He credited the bill sponsors with recognizing the economic and environmental importance of sustainable aviation fuel and its role in achieving long-term decarbonization goals.

SAF is a drop-in fuel made from bio-based feedstocks and can reduce lifecycle greenhouse gas emissions by up to 80 percent compared with traditional jet fuel. The fuel is central to business aviation’s commitment to reach net-zero carbon emissions by 2050.

Industry advocates say a scaled domestic SAF market would strengthen American energy independence by reducing fuel imports and increasing exports. The Americans for Clean Aviation Fuels Coalition estimates domestic production could boost U.S. gross domestic product by more than $78 billion by 2035 and support more than 400,000 jobs at peak development.

Beyond SAF, the business aviation sector continues to advance other sustainability initiatives, including operational improvements, airspace modernization, and the development of electric, hybrid, and hydrogen-propulsion technologies. Combined with supportive policy measures, those efforts form the foundation of the industry’s long-term strategy to reduce carbon emissions.