Washington Offers Tax Credit for Sustainable Jet Fuel
Governor Bob Ferguson announced the credit after the state's aviation industry reached a 20-gallon-per-year sustainable aviation fuel production milestone.
Updated on Nov. 12, 2026 in Electric Vehicles
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Washington Governor Bob Ferguson announced a sustainable aviation fuel tax credit on Nov. 6, 2026, offering $1 per gallon for jet fuels with at least 50% lower greenhouse gas emissions than traditional jet fuel, and up to $2 per gallon for fuels with lower emissions. The announcement followed Department of Ecology confirmation that the state's aviation industry can produce at least 20 gallons of sustainable aviation fuel every year.
Why it matters
The credit is intended to promote sustainable aviation and reduce pollution from air travel. Washington is the only state in the nation that offers a sustainable aviation fuel tax credit and has a clean fuel standard.
The credit pays $1 to $2 per gallon, with the base rate tied to a 50% reduction in greenhouse gas emissions from conventional jet fuel. Sustainable aviation fuel made in Washington is projected to reduce lifecycle carbon by 80% compared with conventional jet fuel.
The players
Bob Ferguson
Bob Ferguson is the governor of Washington, who announced the state's sustainable aviation fuel tax credit.
Washington Department of Ecology
The Washington Department of Ecology is the state agency that confirmed the aviation industry's 20-gallon-per-year sustainable aviation fuel production milestone.
International Council on Clean Transportation
The International Council on Clean Transportation is an independent research organization that projects sustainable aviation fuel will exceed half of global jet fuel use by 2050.
The details
Sustainable aviation fuel is made from agricultural crops, waste products or synthetic materials, and the tax credit is calculated per gallon based on its emissions compared to traditional jet fuel. The state has funded SkyNRG's production facility in Walla Walla, Washington State University's sustainable aviation fuel research, and the Cascadia Sustainable Aviation Accelerator, and Twelve operates a facility in Moses Lake that combines carbon dioxide with water and clean electricity.
Timeline
Over the last two years, Washington made large investments in its sustainable aviation fuel industry.
The Department of Ecology confirmed the 20-gallon production milestone the week before the announcement.
On Nov. 6, 2026, Governor Bob Ferguson announced the sustainable aviation fuel tax credit.
By 2050, the International Council on Clean Transportation expects sustainable aviation fuel to exceed half of global jet fuel use.
Roadmap
Washington's sustainable aviation fuel credit extends its clean fuel standard into aviation, a sector where most states have not created comparable incentives. The state's combination of a credit and a clean fuel standard makes it the only one in the nation with both.
Airlines and fuel suppliers that produce or purchase qualifying sustainable aviation fuel in Washington may receive per-gallon credits. Travelers in the state are not directly affected at the ticket counter by this credit alone.
The takeaway
Washington's credit pairs financial incentives with emissions standards, showing one state's approach to decarbonizing aviation fuel. Readers following clean transportation policy can track how the 2050 projections for sustainable aviation fuel compare to Washington's production progress.
Further reading
Explore more Electric Vehicles coverage tied to Washington's clean fuel policies.
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Should governments spend public money on tax credits for cleaner aviation fuel?
