Securing America's Fuels Act; SAF Act
Summary
The Securing America's Fuels Act (SAF Act) aims to amend the Internal Revenue Code of 1986 by reinstating a special rate calculation for the clean fuel production credit specifically for sustainable aviation fuel (SAF). It also extends the credit through December 31, 2033. This bill seeks to incentivize the production and use of SAF by adjusting the tax credit rates based on the facility type where the fuel is produced.
Expected Effects
If enacted, the SAF Act would increase the financial incentive for producing sustainable aviation fuel. This could lead to greater investment in SAF production facilities and a corresponding increase in the supply of SAF. The extension of the credit through 2033 provides long-term certainty for producers, encouraging further development and adoption of SAF.
Potential Benefits
- Increased production and use of sustainable aviation fuel.
- Potential reduction in greenhouse gas emissions from the aviation sector.
- Long-term certainty for investors in SAF production facilities.
- Support for domestic energy production and reduced reliance on foreign oil.
- Potential for job creation in the SAF production and related industries.
Potential Disadvantages
- Potential cost to taxpayers due to the increased tax credits.
- Possible unintended consequences or loopholes in the definition of "sustainable aviation fuel".
- The credit may not be sufficient to overcome other barriers to SAF adoption, such as infrastructure limitations.
- Potential for market distortions if the credit favors certain types of SAF production over others.
- The focus on aviation fuel may divert resources from other potentially more effective climate change mitigation strategies.
Constitutional Alignment
The bill aligns with the General Welfare Clause of the Constitution, as it seeks to promote economic activity and environmental sustainability through tax incentives. Specifically, Congress has the power to "lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States" (Article I, Section 8, Clause 1). The bill falls under Congress's power to regulate commerce and provide for the general welfare.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).