Sweeping U.S. Tax Bill Would Roll Back Grants for Green Jet Fuel

Key Points

• A new U.S. House bill threatens to eliminate a $300 million fund supporting sustainable aviation fuel (SAF) and other clean aviation technologies.
• SAF production in the U.S. has rapidly expanded, but still accounts for less than 1% of total jet fuel use.
• While direct SAF funding may be cut, some support remains through extended tax credits for advanced biofuels, which include SAF feedstocks.

Summary

The U.S. House of Representatives has passed a major tax bill that could remove significant funding for sustainable aviation fuel (SAF) and roll back other clean energy incentives established under the Inflation Reduction Act. Although the bill threatens a $300 million SAF fund, advanced biofuel programs that also support SAF production may continue. The legislation now moves to the Senate, where changes are possible before it can become law.