H.R. 6518: Securing America’s Fuels Act

This bill, known as the Securing America’s Fuels Act, aims to amend the Internal Revenue Code to benefit the production of sustainable aviation fuel (SAF). Here are the main components of the bill:

Reinstatement of Special Rate Calculation

The bill reinstates a special rate calculation for the clean fuel production credit specifically for sustainable aviation fuel. This involves updating specific tax codes as follows:

• For fuel produced at a qualified facility, the credit amount would increase from 20 cents to 35 cents per gallon.
• For fuel produced at another type of qualified facility, the credit amount would rise from $1.00 to $1.75 per gallon.

Definition of Sustainable Aviation Fuel

Under the bill, sustainable aviation fuel is defined as liquid fuel that:

• Is not derived from kerosene;
• Meets certain technical standards from ASTM International, specifically Standard D7566 or the Fischer Tropsch provisions of Standard D1655;
• Is not derived from palm fatty acid distillates or petroleum.

Extension of Clean Fuel Production Credit

The bill extends the period during which the clean fuel production credit is applicable. Specifically, it raises the deadline for fuel sales from after December 31, 2029, to after December 31, 2033.

Effective Date

The changes made by this bill will apply to fuel produced after December 31, 2025.

Relevant Companies

• DAL (Delta Air Lines, Inc.): As a major airline, Delta could benefit from tax credits for using sustainable aviation fuel, potentially reducing fuel costs and enhancing their sustainability efforts.
• AAL (American Airlines Group Inc.): Similar to Delta, American Airlines may realize financial benefits from the availability of tax credits for sustainable aviation fuel, impacting its operational costs.
• BA (The Boeing Company): Boeing may see increased demand for its aircraft capable of using sustainable aviation fuels, aligning with industry trends toward greener aviation solutions.
• LMT (Lockheed Martin Corporation): The company may be involved in the development or deployment of technologies related to sustainable aviation fuels, which could benefit from the incentives provided in this bill.