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Creates a package of incentives, standards, grants, research, and procurement rules to accelerate production and use of sustainable aviation fuel (SAF) in the United States. It adds SAF production property to the investment tax credit with phased percentages and recapture rules, extends and limits production tax credits for SAF, sets national aviation GHG targets, directs federal research and grants, requires an EPA low‑carbon aviation fuel standard with lifecycle accounting and a credit market, and requires the Department of Defense to buy at least 10% SAF for operational uses when cost‑competitive and U.S.‑produced. The bill combines revenue changes, appropriations/authorized funding for grant and research programs, new regulatory requirements for fuel producers/importers, and procurement conditionalities to drive domestic SAF supply and lower aviation lifecycle carbon intensity on timelines through 2030–2050.
The bill channels federal incentives, grants, procurement, standards, and research to accelerate domestic sustainable aviation fuel supply and signal a decarbonization pathway for aviation—but does so at meaningful fiscal cost, with compliance complexity, potential feedstock and land‑use tradeoffs, and risks that benefits concentrate among larger firms while outcomes depend on whether targets and market signals translate into real, affordable SAF supply.
Domestic SAF producers, energy companies, and project developers receive extended and expanded tax incentives (production tax credits and an investment tax credit) through the 2020s–2030s, improving project economics and encouraging more SAF supply.
U.S. producers and manufacturers gain targeted federal grant funding ($200M/year for 2026–2030) to scale SAF and low‑emission aviation technologies, accelerating commercialization and creating construction and technical jobs.
Travelers, communities, and the aviation sector get a clear national emissions ambition (35% aviation GHG reduction by 2035 and net‑zero by 2050), which signals market certainty that can spur private investment in cleaner fuels and technologies.
Taxpayers and federal finances face higher costs: extending and expanding SAF tax credits and grant programs (plus research funding) increases federal outlays and could raise the deficit or crowd out other priorities.
Air travelers and consumers could face higher prices if airlines bear increased fuel, retrofit, or domestic‑procurement costs—especially if SAF or U.S.-only requirements raise procurement costs or if non‑SAF fuel producers lose credits.
Producers, small businesses, and regulators may face significant compliance, modeling, and administrative burdens from phasedown/recapture rules and detailed lifecycle and land‑use accounting, raising project costs and complexity.
Introduced February 26, 2025 by Julia Brownley · Last progress February 26, 2025