Why It Matters
Massachusetts has enacted its first financial incentive for sustainable aviation fuel, positioning the state as a potential regional hub for an emerging clean-energy sector that aviation industry leaders view as one of the few viable paths to reducing commercial flight emissions. The move adds Massachusetts to a small but growing list of states actively subsidizing SAF adoption.
What Happened
Gov. Maura Healey signed a supplemental budget bill that includes a $10 million annual tax credit for sustainable aviation fuel — the first such incentive in the state’s history. The credit runs for three years and applies to SAF produced from cooking oil, plant and animal materials, or synthetic fuel sources.
The push was led by Rich Davey, CEO of the Massachusetts Port Authority, who previously served as the state’s transportation secretary and as head of the MBTA. Davey assembled a working group that included Energy and Environmental Affairs Secretary Rebecca Tepper and Healey’s climate chief, Melissa Hoffer. The group formally urged the governor to implement the credit as part of a broader strategy to establish New England as a center for SAF production and distribution.
“One way that states can effectuate policy that actually matters is this tax credit,” Davey said in public remarks on the legislation.
Massport’s proposal to expand Hanscom Field airport also references plans to expedite SAF procurement at that facility, suggesting the authority views the credit as part of a wider infrastructure push.
By the Numbers
$10 million — the annual value of the tax credit, available each year over a three-year window.
80 percent — the estimated emissions reduction achievable through SAF use, according to research from Harvard University and the International Air Transport Association.
Less than 1 percent — SAF’s current share of global jet fuel consumption, underscoring how far the industry has to go.
Twice as expensive — SAF’s cost premium over conventional jet fuel, driven by complex supply chains that incentives are designed to offset.
$42 million — the amount Boston collected in aviation fuel taxes tied to Logan Airport purchases last year, providing context for the scale of fuel activity the credit aims to influence.
Industry Context
SAF has attracted significant attention from airlines and policymakers because aviation is among the hardest sectors to decarbonize — electric or hydrogen-powered commercial aircraft remain years away from practical deployment at scale. SAF can be used in existing aircraft engines without modification, making it one of the more near-term options available to the industry.
Not everyone views SAF purely as a climate solution, however. Chuck Collins, who authored a report on SAF barriers in Massachusetts in October 2025, offered a more measured take: “Sustainable aviation fuel solves a big short-term PR problem for the airline industry.” That framing reflects a broader debate among researchers over whether SAF represents a genuine long-term decarbonization pathway or a transitional measure that delays deeper structural changes.
The Massachusetts clean energy strategy has faced headwinds on other fronts, including supply disruptions in the renewable electricity sector, making the SAF credit a notable bright spot in the state’s efforts to meet its climate commitments.
Zoom Out
Massachusetts joins California, Illinois, and Nebraska in offering state-level SAF incentives. The Federal Aviation Administration has set a target of meeting 100 percent of domestic aviation fuel demand through SAF by 2050 — an ambition that analysts widely describe as requiring substantial public investment and regulatory support at both the state and federal levels to be achievable.
The gap between current SAF supply and long-term demand targets means state-level tax credits, while modest in scale, play a meaningful signaling role for fuel producers and investors deciding where to site new production facilities.
What’s Next
With the supplemental budget now signed, the tax credit framework will need implementation guidance from state agencies before credits can be claimed. The Massport working group’s recommendation to position New England as a SAF hub suggests additional policy steps — potentially including procurement requirements or infrastructure investment at Logan Airport — may follow. The credit’s three-year window gives the state a defined period to assess whether the incentive meaningfully shifts SAF adoption before lawmakers consider renewal or expansion.