In his recent fiscal proposal for the upcoming 2026-27 cycle, California Governor Gavin Newsom introduced a financial incentive aimed at boosting the production of eco-friendly, sustainable aviation fuel within the state. This initiative, highlighted by the California Senate Committee on Budget and Fiscal Review, seeks to lower the tax burden for producers of renewable jet fuel as a strategy to decrease carbon output and foster advancements in sustainable aviation.
While the overarching goal is to align with California’s environmental objectives by making local production more economically viable, the current plan lacks specific figures regarding the credit’s monetary worth or the exact regulatory framework for its implementation.
Sustainable aviation fuels have the potential to reduce lifecycle greenhouse gas emissions from aviation by up to 80% over legacy fuels. Business aviation, an incubator for investment and innovation of all kinds, supports policies and other measures to advance the production, availability and use of the fuels.
