SAF Act

This bill amends the Internal Revenue Code to reinstate a special, higher rate for the clean fuel production credit when the fuel is sustainable aviation fuel, and extends the entire credit through 2033.

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 emissions criteria, the credit rate is increased from 20 cents to 35 cents per gallon; for fuel produced at a qualified facility that meets a higher emissions reduction threshold, the rate is increased from $1.00 to $1.75 per gallon. Sustainable aviation fuel is defined as liquid fuel, not kerosene, sold for use in aircraft that meets ASTM International Standard D7566 or the Fischer Tropsch provisions of ASTM D1655 Annex A1, and is not derived from palm fatty acid distillates or petroleum. The section also extends the credit's expiration date from December 31, 2029 to December 31, 2033. These changes apply to fuel produced after December 31, 2025.