Bizav Groups Cheer Tax Credit Promoting SAF

 - December 27, 2019, 2:02 PM

The business aviation community is resoundingly endorsing a measure included in the recently passed government-wide funding bill that industry leaders say will promote and develop use of sustainable aviation fuels (SAF). The Fiscal Year 2020 funding bill, which was signed into law on December 20 shortly after clearing the House and Senate that week, restores an expired biodiesel tax credit through 2022. The tax credit applies to qualified producers or blenders of sustainable fuels derived from biomass.

In a joint statement, the Sustainable Aviation Fuels Coalition called the tax incentive vital to the industry’s efforts to research, produce, and scale SAF use. “Ten years ago, the business aviation community made a commitment to sustainability and carbon-neutral growth. Utilization of SAF by business aviation operators is an important part of this commitment,” said the coalition, which includes the European Business Aviation Association, General Aviation Manufacturers Association, International Business Aviation Council, National Air Transportation Association, and National Business Aviation Association.

“NBAA’s 11,000 member companies are committed to increasing the utilization of SAF in our daily operations,” said NBAA president and CEO Ed Bolen. “This innovative fuel can reduce CO2 emissions by up to 80 percent, and they are a critical part of business aviation’s commitment to sustainability.”

NATA COO Timothy Obitts said the tax incentives, along with other initiatives such as California’s Low Carbon Fuel Standard program, “will help create the supply of sustainable aviation fuels that the business aviation industry is demanding. SAF is one of the critical pieces that will help the industry achieve cleaner skies for future generations.”

The industry is aggressively promoting SAF use, GAMA president and CEO Pete Bunce further said, adding “we will continue to work with policymakers and other stakeholders to support its use.”

From an international perspective, IBAC director general Kurt Edwards said the tax incentive “demonstrates continued U.S. leadership among its international peers to encourage the production and use of SAF.”