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45Z questions weighing on sustainable aviation fuel industry

The assistant director of energy with the Illinois Farm Bureau says questions surrounding the 45Z tax credit are hampering the sustainable aviation fuel (SAF) industry.

Noelle Neef says much of the uncertainty involves the future of the Inflation Reduction Act, which created the credits.

“That is something that President Trump has said might be repealed.”  She says, “We are hoping that the 45Z tax credit, or something similar, will be available to both the renewable fuel producers, but also incentivize our farmers for climate smart ag practices.”

She tells Brownfield the SAF industry is gaining traction, but the unpredictability is a concern.

“Illinois was actually the first state in the country to have a state sustainable aviation fuel tax credit.”  She says, “That’s $1.50 given to the airline, so United Airlines was the first one to take advantage of that tax credit, and they bought 8 million gallons of SAF to be used at O’Hare Airport in Chicago.”

Neef says sustainable aviation fuel has the potential to greatly bolster corn and soybean demand if a beneficial federal policy is implemented.

Brownfield spoke with Neef at IFB’s recent 2025 Governmental Affairs & Leadership Conference in Springfield.

AUDIO: Noelle Neef – Illinois Farm Bureau