SAF Act
- Bill Number
- S. 3759
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 2
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2026-02-02: Read twice and referred to the Committee on Finance.
- Last Updated
- 2026-02-10T21:42:19Z
AI-Generated Summary
Purpose
The Securing America's Fuels Act (SAF Act) aims to promote the production of sustainable aviation fuel (SAF)—a cleaner alternative to traditional jet fuel—by providing financial incentives through tax credits. It seeks to support the aviation industry's transition to lower-emission fuels, aligning with broader environmental goals.
Key Provisions
- Reinstates Special Tax Credit Rates for SAF: Under the clean fuel production credit (Section 45Z of the Internal Revenue Code), producers of SAF receive higher credit amounts per gallon compared to other clean fuels:
- 35 cents per gallon for fuel produced at facilities using prevailing wage and apprenticeship requirements (up from a standard 20 cents).
- $1.75 per gallon for fuel produced at facilities without those labor requirements (up from a standard $1.00).
- Defines Sustainable Aviation Fuel: SAF is specified as a liquid fuel (excluding kerosene) sold for aircraft use that:
- Meets ASTM International standards (D7566 or Fischer-Tropsch provisions in D1655, Annex A1), which are technical specifications ensuring fuel quality and compatibility with aircraft engines.
- Is not derived from palm fatty acid distillates (a byproduct of palm oil processing) or petroleum to avoid reliance on unsustainable or fossil-based sources.
- Extends the Credit Period: The clean fuel production credit is prolonged from December 31, 2029, to December 31, 2033.
- Effective Date: Changes apply to fuel produced after December 31, 2025.
Significant Changes to Existing Law
- Reverses amendments made by Public Law 119-21 (likely the Inflation Reduction Act or a related measure), which had altered or removed the special higher rates for SAF under Section 45Z(a)(3).
- Updates conforming language in Section 45Z(c)(1) to include the reinstated rates in inflation adjustment calculations, ensuring the credits keep pace with economic changes.
- Extends the overall credit duration by four years beyond the previous expiration, providing longer-term certainty for investments in SAF production.
Potential Impacts
- On Government Agencies: The U.S. Department of the Treasury and Internal Revenue Service will administer the expanded credits, potentially increasing administrative workload for verifying SAF compliance with standards. This could lead to modest revenue losses for the federal government due to higher tax incentives.
- On Citizens and Businesses: Encourages investment in SAF production facilities, potentially creating jobs in the biofuel and aviation sectors. Consumers may indirectly benefit from greener aviation options, though higher fuel costs could be passed on if production scales up slowly.
- On International Relations: Supports U.S. leadership in global aviation decarbonization efforts, such as those under the International Civil Aviation Organization (ICAO), by boosting domestic SAF supply and reducing reliance on imported fossil fuels. It may enhance U.S. competitiveness in the international clean energy market.
Main Stakeholders Affected
- SAF Producers and Biofuel Companies: Primary beneficiaries through access to higher, extended tax credits, incentivizing facility upgrades and innovation.
- Aviation Industry (Airlines and Manufacturers): Gains from increased SAF availability, helping meet emission reduction targets without major aircraft redesigns.
- Environmental Groups and Policymakers: Supports climate initiatives by promoting low-carbon fuels, though critics may note exclusions (e.g., palm-based sources) to prevent deforestation.
- Taxpayers and General Public: Bears the cost via reduced federal tax revenue, but could see long-term benefits from environmental improvements and energy security.
Notable Legal, Constitutional, or Political Implications
- Legal: Strengthens tax code incentives for renewable energy without altering broader clean fuel definitions, ensuring compatibility with existing environmental regulations. The bill's focus on specific ASTM standards provides clear, enforceable criteria to minimize disputes over credit eligibility.
- Constitutional: No apparent challenges; it falls under Congress's taxing and spending powers (Article I, Section 8), promoting general welfare through environmental policy.
- Political: Bipartisan sponsorship (introduced by Senators from both parties) signals cross-aisle support for aviation sustainability. It could influence future energy legislation by extending green tax credits, potentially setting a precedent for similar extensions in other sectors amid debates on fiscal impacts and climate priorities.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (3)
Sen. Cortez Masto, Catherine [D-NV], Sen. Ernst, Joni [R-IA], Sen. Klobuchar, Amy [D-MN]
Recent Actions
- 2026-02-02: Read twice and referred to the Committee on Finance.
- 2026-02-02: Introduced in Senate
Bill Versions
- Securing America's Fuels Act — issued 2026-02-02 — PDF (3 pages)