SCHNEIDER APPLAUDS NEW TREASURY GUIDANCE TO IMPLEMENT SUSTAINABLE AVIATION FUEL CREDIT, DECARBONIZE AVIATION SECTOR

WASHINGTON – Rep. Brad Schneider (IL-10), a member of the House Ways and Means Committee, released the following statement applauding new Treasury Department guidance on the Inflation Reduction Act-enacted Sustainable Aviation Fuel (SAF) Credit, which will cut aviation sector emissions and boost US production of SAF:

“This week marks an important new chapter in our work to decarbonize aviation. I was proud to author the Sustainable Aviation Fuel (SAF) credit included within the Inflation Reduction Act and yesterday the Biden Administration released its final guidance for implementing this important incentive.

I commend the Biden Administration and Treasury Secretary Janet Yellen for their thoughtful work bringing this guidance to fruition. They rose to the challenge–balancing vital climate equities, inclusion of domestic agricultural producers, and reliance on validated scientific methodology. With this guidance out, producers now have the direction they need to boost SAF production—and we’re already seeing this legislation remake the domestic SAF market and positioning the U.S. as a global SAF leader.

The IRA was historic and lays a foundation for our climate work ahead. In the coming months, I will be introducing legislation to extend the authorization of the SAF credit. And I look forward to working with Secretary Yellen on this effort, as well as the Department’s further guidance on the SAF credit. Yesterday marked a historic day for decarbonizing aviation.”

Schneider introduced the Sustainable Skies Act in 2021, which created the SAF credit. The credit was ultimately adopted by the Inflation Reduction Act in 2022 and aims to cut in half greenhouse gas emissions from the aviation industry. Producers of SAF are eligible for a tax credit of $1.25 to $1.75 per gallon.

Yesterday’s guidance issued by the Treasury Department provides clarity around eligibility for the credit and updates a model for SAF producers to determine greenhouse gas emissions rates that determine eligibility and credit amount for SAF they produce.

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