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Triple committee defers action on sustainable aviation fuel tax credit after extensive testimony and questions
Summary
Committees heard hours of testimony for SB 2027, a proposed tax credit to encourage sustainable aviation fuel (SAF). Airlines and industry groups said the credit would help close a $4–$5 per‑gallon cost gap; opponents warned about lifecycle emissions and subsidy risks. With local production limited and many operational questions unanswered, committees deferred action pending further information.
Senate Bill 2027 would establish a state tax credit for sustainable aviation fuel (SAF) to help close the cost gap between conventional jet fuel and SAF and accelerate supply.
Proponents including the Hawaii Renewable Fuels Coalition, Alaska and Hawaiian Airlines, and Pono Pacific said the credit could help spur local production and importation to reduce aviation emissions. Airline…
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