SAF Act

This bill amends the Internal Revenue Code to reinstate a special rate calculation for the clean fuel production credit for sustainable aviation fuel and extends the credit's expiration date. Sec. 2, Extension of clean fuel production credit; reinstatement of special rate calculation for sustainable aviation fuel: This section reinstates a special rate for sustainable aviation fuel under the clean fuel production credit. For fuel produced at a qualified facility that meets certain wage and apprenticeship requirements, the rate is 35 cents per gallon instead of 20 cents. For fuel produced at a qualified facility that does not meet those requirements, the rate is $1.75 per gallon instead of $1.00. Sustainable aviation fuel is defined as liquid fuel, not kerosene, sold for use in aircraft, meeting ASTM International Standard D7566 or the Fischer Tropsch provisions of ASTM D1655 Annex A1, and not derived from palm fatty acid distillates or petroleum. The section also makes a conforming amendment to include the new amounts in inflation adjustment provisions. It extends the credit to apply to fuel sold after December 31, 2033, instead of December 31, 2029. These changes apply to fuel produced after December 31, 2025.