SAF Act

This bill amends the Internal Revenue Code of 1986 to reinstate and increase the special clean fuel production credit rates specifically for sustainable aviation fuel (SAF) . It raises the credit from 20 cents to 35 cents per gallon for fuel produced at certain qualified facilities, and from $1.00 to $1.75 per gallon for others. This aims to provide stronger financial incentives to boost the domestic production of sustainable aviation fuel. The legislation defines sustainable aviation fuel as liquid fuel, excluding kerosene, intended for aircraft use that adheres to specific ASTM International standards , such as D7566 or D1655 Annex A1. Crucially, this fuel must not be derived from palm fatty acid distillates or petroleum. Additionally, the bill extends the clean fuel production credit's availability for an extra four years, applying to fuel sold through December 31, 2033 , with all amendments taking effect for fuel produced after December 31, 2025.