Coalition launches to lobby on clean fuel tax credit

By Emma Dumain | 04/29/2024 01:41 PM EDT

Airlines, airports, manufacturers and others are joining forces to protect the Inflation Reduction Act incentive.

United Airlines jets.

United Airlines is part of a coalition lobbying to extend the sustainable aviation fuel credit. Wilfredo Lee/AP

A new group plans to lobby lawmakers on extending an Inflation Reduction Act tax credit to boost the production of sustainable aviation fuel.

The SAF Coalition, made up of nearly 40 major airlines, airports, manufacturers and biofuel producers, is coming together at a critical moment for the industry: Airlines especially are eager to make good on ambitious emissions reduction pledges but say they will fall short on their goals without more support from Congress.

Unlike most of the clean energy tax credits included in the IRA of 2022 that run 10 years, the program to boost the production of a still-nascent fuel source that could help one of the world’s most polluting sectors decarbonize expires at the end of 2024.

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At that point, incentives to produce sustainable aviation fuel — often called SAF — get rolled into the Clean Fuels Production Credit, which will sunset in 2027.

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