SAF Credit Extension Act

Full Title:
SAF Act

Summary#

This bill amends the Internal Revenue Code section 45Z to change how the clean fuel production credit is calculated for sustainable aviation fuel (SAF). It restores a higher special rate for SAF by replacing the lower per-unit amounts: 35 cents instead of 20 cents for one category of qualified facilities, and $1.75 instead of $1.00 for another category. The bill defines sustainable aviation fuel as a liquid fuel (not kerosene) sold for use in aircraft that meets ASTM International Standard D7566 or the Fischer Tropsch provisions of ASTM D1655 Annex A1, and that is not derived from palm fatty acid distillates or petroleum. It also extends the period when the credit applies by changing the cutoff for fuel sales from after December 31, 2029 to after December 31, 2033. The bill’s changes apply to fuel produced after December 31, 2025. A conforming amendment updates cross-references in section 45Z(c)(1).

What it means for you#

  • If you produce or sell sustainable aviation fuel, the bill changes the per-unit tax credit amounts that apply to your fuel and the dates when the credit is available.
  • The bill sets specific technical standards (ASTM D7566 or Fischer Tropsch provisions of D1655 Annex A1) that fuel must meet to qualify.
  • The bill excludes fuels derived from palm fatty acid distillates or petroleum from this special SAF definition.
  • For most people, the bill text does not describe direct consumer changes.

Expenses#

No publicly available information on costs or budget effects is included in the bill text provided.

Proponents' View#

No publicly available information on proponents' stated views is included in the bill text provided.

Opponents' View#

No publicly available information on opponents' stated views is included in the bill text provided.