BIO, business community call for SAF tax incentives

A broad coalition of 77 companies and associations that are stakeholders in the aviation industry—including the Biotechnology Innovation Organization (BIO) and its member companies, Gevo, LanzaJet, LanzaTech, and Velocys—reiterated calls for “a new, long-term, technology- and feedstock-neutral tax incentive for sustainable aviation fuel,” in a letter to the House and Senate leadership.

When President Biden recently announced EPA will end summer restrictions on the sale of E15 as a way to address gas prices resulting from the war in Ukraine, he also renewed the administration’s push for SAF tax credits. The letter supported his position.

“[T]he most important action Congress can take to support the decarbonization of the aviation sector is to enact a blender’s tax credit specifically aimed at incentivizing the production and use of SAF,” said the letter.  “SAF can reduce lifecycle greenhouse gas (GHG) emissions by 80 percent or more compared to fossil jet fuel,” says the coalition letter. “ SAF is widely considered to be the most critical driver of aviation decarbonization, as electrification and other advanced propulsion technologies are currently infeasible for the medium- and long-haul flights that account for the vast majority of aviation’s GHG emissions.”

BIO recently submitted comments to the EPA encouraging greater support for biofuels. “Advancing biofuel innovation is crucial to agriculture being part of the solution to the climate crisis and fostering energy security. EPA must update regulatory requirements for greenhouse gas emissions analysis to reflect the newest science and technology.”

A SAF tax credit should be part of a number of clean energy incentives, according to the Business Roundtable’s new roadmap for U.S. energy policy.

“A clear commitment to increasing domestic energy production is necessary to preserve our strong economy, on which our transition to a greener future depends,” said Business Roundtable CEO Joshua Bolten. He added that this includes enacting clean energy incentives for sustainable aviation fuels.