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Bill

HR 6518

SAF Act

119th Congress Introduced by Troy Carter and 9 co-sponsors

Reinstates a higher, tiered clean fuel credit for SAF and extends eligibility through 2033, boosting incentives for qualified facilities meeting specific standards.

Introduced in House
0
WeVote Research Nonpartisan
Bill Summary · HR 6518

Overview

  • Bill: HR 6518
  • Session: 119th Congress, 1st Session
  • Title: Securing America's Fuels Act (SAF Act)
  • Purpose: Reinstate the special rate calculation for the clean fuel production credit specifically for sustainable aviation fuel (SAF) and extend the overall clean fuel production credit timeline.

What the bill would do

  • Reinstatement of Special Rate for SAF:

    • Replaces the standard rate calculation for sustainable aviation fuel (SAF) with a higher, special rate depending on the production facility type.
    • For SAF produced at a qualified facility described in:
    • Section 45Z(a)(2)(A): the special rate is 35 cents per unit (replacing the prior 20 cents).
    • Section 45Z(a)(2)(B): the special rate is $1.75 per unit (replacing the prior $1.00).
    • SAF is defined as liquid fuel used in aircraft, not derived from palm fatty acid distillates or petroleum, and meeting one of:
    • ASTM International Standard D7566, or
    • Fischer-Tropsch provisions of ASTM D1655, Annex A1.

  • Conforming Amendments:

    • Adjusts the cross-reference in section 45Z(c)(1) to reflect the new calculation, ensuring the correct combination of rates (the $1.00, 35 cents, and $1.75 amounts) is used together.

  • Extension of the Credit:

    • Extends the clean fuel production credit eligibility period for SAF to fuels sold after December 31, 2033 (up from the prior end-date).

  • Effective Date:

    • The amendments apply to SAF produced after December 31, 2025.

Key provisions and changes

  • Special rate recalibration:
    • SAF produced at qualified facilities can receive higher credit amounts, incentivizing SAF production under the new tiered rates.
    • The new tiers are:
    • 35 cents per unit for SAF from facilities in category (A).
    • $1.75 per unit for SAF from facilities in category (B).
  • Facility definitions:
    • The special rate applies based on whether the facility falls under category (2)(A) or (2)(B) of section 45Z(a), with SAF requirements aligned to industry standards and non-palm/petroleum sources.
  • Eligibility standards:
    • SAF must meet specified ASTM standards or Fischer-Tropsch provisions.
    • Must not be derived from palm fatty acid distillates or petroleum.

Who/what is affected

  • Primary beneficiaries:
    • Producers of sustainable aviation fuel (SAF) who operate qualified facilities and meet the defining standards.
  • Industries and stakeholders:
    • Aviation fuel producers, environmental and energy policy researchers, and tax planning teams that utilize the clean fuel production credit.
  • Tax treatment:
    • Adjusts credit calculations and extension timing within the Internal Revenue Code.

Procedural and timeline aspects

  • Introduction and referral:
    • Introduced December 9, 2025, to the House; referred to the Committee on Ways and Means.
  • Coverage period:
    • Applies to SAF produced after December 31, 2025.
    • Extended credit eligibility through fuel sold after December 31, 2033 (longer horizon than prior law).
  • Legislative status:
    • As of the bill text provided, it has been introduced and referred; no enacted status indicated.

Potential impact

  • Economic:
    • Provides greater tax credit incentives for SAF producers, potentially accelerating SAF production and investment in qualified facilities.
  • Environmental and energy policy:
    • Encourages a shift toward aviation fuels that meet recognized standards and exclude certain feedstocks, supporting lower-emission aviation options.
  • Administrative:
    • Requires updating tax forms and internal Revenue Code references to reflect the new rate structure and extended timeline.

Compiled from official sources — confirm details with the bill’s official record.

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