Aviation industry puts weight behind biodiesel credit extension thanks to biojet inclusion

April 16, 2019 |

In Washington, the National Air Transportation Association (NATA) led a coalition of top aviation organizations in penning a letter to Senate Finance Committee Chairman Charles Grassley and Ranking Member Ron Wyden in support of an extension of the biodiesel tax incentive under Section 40A included in the Tax Extender and Disaster Relief Act (S.617). The letters were jointly issued by the Air Line Pilots Association, Airlines for America, the Cargo Airline Association, the General Aviation Manufacturers Association, the National Air Transportation Association, the National Business Aviation Association, and the Regional Airline Association. A companion letter was sent to House Ways and Means Committee Chairman Richard Neal and Ranking Member Kevin Brady.

Sustainable alternative jet fuels (SAJF) are eligible for the now-expired biodiesel credit, and the industry has leveraged the credit to make important advancements in fuel efficiency. The letter states that “an extension of this credit will provide the industry with the stability necessary to continue investing in technology that will generate economic and environmental benefits with globally significant impacts.”

Included in those positive advancements, the coalition notes examples of commercial and business aviation companies already implementing SAJF. Because it is a “drop-in” fuel, it can be delivered to the common storage and fuel distribution systems at an airport and blended seamlessly with petroleum-based jet fuel to power all turbine aircraft. The extension of the tax incentive would further this advancement and growth.

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Category: Policy

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