Washington Gov. Bob Ferguson announced a sustainable aviation fuel tax credit on Nov. 6, 2026, after the state reached the production level needed to activate it. The Washington credit pays $1 per gallon for qualifying jet fuel with greenhouse gas emissions at least 50% below conventional jet fuel, with payments of up to $2 per gallon for fuels with lower emissions. The Department of Ecology confirmed that Washington can produce at least 20 million gallons of sustainable aviation fuel annually.
What it means
The tax credit is intended to bring investment to Washington and address demand for jet fuel made locally. Sustainable aviation fuel can be made from agricultural crops, waste products and synthetic materials.
Washington is the only state with both a sustainable aviation fuel tax credit and a clean fuel standard. Producers of lower-emission transportation fuels can earn revenue through the state clean fuel standard and can also use the federal Renewable Fuel Standard.
Over two years, the state has supported SkyNRG’s production facility in Walla Walla, sustainable aviation fuel research at Washington State University and the Cascadia Sustainable Aviation Accelerator. Twelve opened a Moses Lake facility that uses carbon dioxide, water and clean electricity to produce fuel.
Key facts
- Washington announced the tax credit on Nov. 6, 2026.
- The credit pays $1 per gallon for jet fuel with at least a 50% greenhouse gas emissions reduction from conventional jet fuel.
- Credits can reach $2 per gallon for fuels with lower emissions.
- Washington met the 20 million-gallon annual production threshold required to unlock the credit.
- State funding is supporting SkyNRG’s production facility in Walla Walla.
- Twelve opened its fuel-production facility in Moses Lake in June.
Source: Office of the Governor of Washington announcement