Bipartisan House bill boosts sustainable aviation fuel momentum with extended tax credit

What the legislation proposes

A new bipartisan measure before the House would extend the Section 45Z Clean Fuel Production Credit, originally created in the Inflation Reduction Act, for a full decade to 2037. The proposal keeps the sustainable aviation fuel incentive at up to one dollar seventy-five cents per gallon for deep lifecycle carbon reductions while preserving stackable bonuses for climate smart feedstocks.

Certainty for producers and airlines

Long visibility on credit value allows fuel developers to finalise financing for biorefineries and assures airlines that sizeable SAF volumes will reach the market at competitive prices. Forward contracts covering several fleet renewal cycles become more attractive because operators can model fuel costs with greater confidence.

Benefits for agriculture and communities

The bill directs Treasury to recognise climate smart corn, soybean and agricultural residue pathways. That alignment channels new revenue into rural areas, diversifies farm income and stimulates logistics demand for moving biomass to modern refineries. Truckers, rail operators and barge owners each stand to gain from enlarged feedstock flows.

Non-obvious infrastructure insight

Extending the credit also encourages airports to invest in dedicated SAF storage and blending systems. These capital projects qualify for accelerated depreciation under existing tax rules, effectively linking infrastructure upgrades with guaranteed fuel demand. Airports that act early can position themselves as preferred hubs for next generation aircraft routes.

Conclusion

By combining policy predictability with technology neutral lifecycle safeguards, the House proposal sets a clear runway for scaling sustainable aviation fuel across the United States while unlocking fresh opportunities for farmers, logisticians and airport operators alike.

Source – The Air Current