Iowa passes bill for SAF credits

The state if Iowa passed a legislation at the end of last month extending credit incentives for sustainable aviation fuel (SAF) production in the state.

The bill, S.F. 657, was introduced on May 12 earlier this year which was passed by the state’s Senate on May 13 by a vote of 44 to 1. Later, the bull was approved by a vote of 84 to 3 by the Iowa House of Representatives on the following day.

The bill’s details showed that once passed into law, the bill will allow eligible businesses to claim tax credit of 25 cents per gallon on SAF production in the state using eligible feedstock.

Eligible feedstocks include ethanol, corn oil, soybean oil, animal fats, used cooking oil and algae. Additional qualification criteria includes the SAF must have at least a 50% lifecycle greenhouse gas (GHG) emission reduction when compared to fossil jet.

The credit would be in place from 2026 through 2035. The tax credit would be capped at $1 per eligible business per year.

Americans for Clean Aviation Fuels, a coalition that includes Delta Air Lines, Airbus, Growth Energy, ExxonMobil, POET, Airlines for America, National Business Aviation Association, Corteva, Indiana Soybean Alliance, Iowa Soybean Association, Missouri Soybeans, Ohio Soybean Council, BP, Rolls-Royce, Natural State Renewables, the American Carbon Alliance, Summit Agricultural Group, Renew Kansas and the Corn Marketing Program of Michigan, has spoken out in support of the bill’s SAF provisions.

The bill can be accessed here.