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Friday, 12 April, 2019

NATA and Industry Aviation Coalition Support Extension of Biodiesel Tax Incentive

Washington, DC, April 12, 2019 – Today, 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 letter was 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.

“NATA is proud to be a driver of initiatives that encourage economies of scale for sustainable alternative jet fuels and provide the industry stability to continue investing in technological advancements that produce global environmental benefits,” stated NATA President Gary Dempsey.

“Business aviation’s use of SAJF is continuing to grow as we strive to achieve our shared goals of continued improvements upon the industry’s already strong fuel efficiency record and, ultimately, carbon neutrality from 2020 forward. A growing industry coalition is demonstrating its long-standing commitment to emissions reduction through a series of initiatives, including the 2018 release of the ‘Business Aviation Guide to the Use of Sustainable Alternative Jet Fuel (SAJF)’ and a recent event establishing Van Nuys Airport as the first general aviation airport in the U.S. to offer SAJF on a trial basis,” added Dempsey.

“We are committed to doing our part, including through our public-private Commercial Aviation Alternative Fuels Initiative (CAAFI), a forum that brings together government, manufacturers, fuel suppliers, and other aviation stakeholders to promote research, production, and use of alternative aviation fuels. But the biodiesel tax incentive remains critical to our efforts,” the letter concludes.


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The National Air Transportation Association (NATA) has been the voice of aviation business for 80 years. Representing nearly 2,300 aviation businesses, NATA’s member companies provide a broad range of services to general aviation, the airlines and the military and NATA serves as the public policy group representing the interests of aviation businesses before Congress and the federal agencies.