The U.S. Department of the Treasury and the Internal Revenue Service (IRS) have issued guidance on the Sustainable Aviation Fuel (SAF) Credit established by the Inflation Reduction Act (IRA) to promote innovation in the aviation industry and reduce emissions. This initiative is part of President Biden's agenda to create jobs and combat climate change.
U.S. Treasury Secretary Janet L. Yellen emphasized the importance of the Inflation Reduction Act in driving American innovation and job creation, stating, "Incentives in the law are helping to scale production of low-carbon fuels and cut emissions from the aviation sector."
Secretary of Agriculture Tom Vilsack highlighted the role of sustainable aviation fuel in transitioning to a clean energy future, recognizing the contribution of farmers in lowering greenhouse gas emissions through the production of new fuels.
Energy Secretary Jennifer M. Granholm praised the guidance for creating new economic opportunities for the agricultural sector and promoting cleaner sustainable aviation fuel production.
Transportation Secretary Pete Buttigieg emphasized the significance of innovation in the aviation sector in achieving net-zero carbon emission goals and strengthening America's position as a leader in sustainable aviation fuels production.
John Podesta, Senior Advisor for International Climate Policy, underscored the importance of the tax credit for sustainable aviation fuels in decarbonizing air travel, stating that it is a critical tool in reducing carbon pollution.
The guidance provides clarity on eligibility for the SAF Credit, which incentivizes the production of SAF with significant greenhouse gas emissions reductions. Additionally, the release of the 40B SAF-GREET 2024 model offers a methodology for SAF producers to determine lifecycle emissions rates, incorporating new data and strategies for emission reduction.
Furthermore, a pilot program is introduced to encourage Climate Smart Agriculture practices for SAF feedstocks, aiming to reduce overall GHG emissions and promote environmentally beneficial farming practices.
The U.S. government's efforts to drive innovation and reduce emissions in the aviation sector demonstrate a commitment to sustainable practices and environmental stewardship.
