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 to reinstate a special rate calculation for the clean fuel production credit, specifically concerning sustainable aviation fuel (SAF). It extends the credit for SAF production until December 31, 2033. The bill modifies the tax credit rates for sustainable aviation fuel produced at qualified facilities.
Expected Effects
The SAF Act will incentivize the production of sustainable aviation fuel by increasing the tax credits available to producers. This could lead to greater investment in SAF production facilities and a potential decrease in the aviation industry's reliance on traditional fossil fuels. The extension of the credit provides long-term certainty for businesses in this sector.
Potential Benefits
- Increased production of sustainable aviation fuel.
- Potential reduction in greenhouse gas emissions from the aviation sector.
- Job creation in the sustainable fuel industry.
- Support for American farmers and producers of biofuel feedstocks.
- Long-term certainty for businesses investing in sustainable aviation fuel.
Potential Disadvantages
- Potential increased costs for consumers if SAF production is more expensive than traditional jet fuel.
- Possible unintended consequences related to land use and feedstock production for biofuels.
- The tax credits could add to the national debt if not offset by other revenue increases or spending cuts.
- The definition of "sustainable" aviation fuel may not fully address all environmental concerns.
- Reliance on tax credits may create market distortions and hinder innovation in alternative technologies.
Constitutional Alignment
The SAF Act falls under the purview of Congress's power to tax and spend for the general welfare, as outlined in Article I, Section 8 of the Constitution. The act aims to promote economic activity and potentially reduce environmental impact, which aligns with the general welfare clause. However, the specific details of the tax credits and their impact on different sectors of the economy could be subject to debate regarding fairness and equity.
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).