Congress, state lawmakers move to juice aviation biofuel production

By: Allison Prang - July 12, 2025 5:45 am

Congress’ passage of President Donald Trump’s spending and tax cuts bill this month could help grow the market for sustainable aviation fuel, a nascent industry that could be a boon for corn-producing states as airline operators are betting on it to decarbonize the sector.

The Republican budget reconciliation law that Trump signed July 4 pared back some of the credits for sustainable energy in the law that congressional Democrats passed and President Joe Biden signed in 2022 — the Inflation Reduction Act.

But the recent law extended one energy tax credit for producing clean fuels, such as sustainable aviation fuel, an alternative to the typical jet fuel planes use. The credit initially went through 2027, but the GOP law extends it through 2029.

Advocates for sustainable aviation fuel had been pushing Congress to extend the tax credit to support production as states across the U.S. have passed or proposed their own tax credits to grow the sector and lure production within their borders. Lawmakers in Iowa, Wisconsin, Michigan and New York have introduced bills enacting tax credits for sustainable aviation fuel.

FULL story: https://nebraskaexaminer.com/2025/07/12/repub/congress-state-lawmakers-move-to-juice-aviation-biofuel-production/


A worker walks beneath a United Airlines Boeing 737-900ER after it arrived at Los Angeles International Airport (LAX) on June 5, 2019. The flight from Chicago to Los Angeles used aviation biofuel, a critical component of airlines’ goal of reaching a net-zero carbon goal by 2050. (Photo by Mario Tama/Getty Images)