Massachusetts Governor Maura Healey has signed legislation creating a sustainable aviation fuel (SAF) tax incentive at the Massachusetts Port Authority's (Massport) direct request, CommonWealth Beacon reported.

The measure adds Massachusetts to a small but growing list of U.S. states layering their own financial incentives on top of the federal SAF blender's tax credit established by the 2022 Inflation Reduction Act. CommonWealth Beacon's initial report did not include specifics on credit value, qualifying parties, effective date, or sunset provisions.

What does the legislation do?

SAF is produced from non-petroleum feedstocks — including used cooking oil, agricultural residues, alcohols, and synthetic hydrocarbons generated from captured carbon and green hydrogen. Lifecycle emissions reductions versus conventional Jet A depend on the production pathway but typically range from 50% to 80%, according to analyses published by IATA and ICAO.

Current ASTM International standards permit SAF to be blended into Jet A at ratios cleared for commercial flight by the FAA. The price gap remains the principal obstacle to wider adoption.

SAF today costs two to five times more than kerosene on a per-gallon basis, a function of limited production capacity, fragmented feedstock supply, and concentration of refining in the U.S. Gulf Coast and Europe. New SAF production capacity is coming online in Louisiana and Texas, though volumes remain a small fraction of U.S. jet fuel demand.

Why did Massport push for a state credit?

Massport operates Boston Logan International Airport (BOS), Worcester Regional Airport, and cruise, cargo, and real-estate holdings in the Port of Boston area. Logan handled close to 20 million enplanements in its last pre-pandemic year and has rebuilt traffic since, with Delta Air Lines, JetBlue Airways, and American Airlines among its leading operators.

The strategic case is straightforward for Massport. Airlines serving Logan face mounting pressure from corporate customers to report progress against scope 3 emissions targets, and SAF is the lever most often cited by carriers as constrained by cost rather than technology. The authority has explored the storage and pipeline changes required to handle larger volumes than the trucked deliveries most U.S. airports currently receive.

How does Massachusetts fit in the federal-state incentive stack?

The federal blender's tax credit, worth $1.25 to $1.75 per gallon depending on lifecycle emissions performance, flows to fuel producers and blenders — not directly to airports or airlines. State-level incentives elsewhere have typically taken the form of motor-fuel-tax exemptions or per-gallon credits tied to in-state blending or distribution activity.

A Massachusetts credit, depending on its final structure, could capture economic benefit for in-state blenders, distributors, or large-volume airline purchasers — or direct benefit specifically to operations at Logan and Worcester. Implementing guidance, not yet published in CommonWealth Beacon's reporting, will determine which structure applies.

What comes next at Logan?

Healey's signature moves Massachusetts from observer to active participant in the U.S. SAF incentive stack. The first reporting test will arrive when fuel suppliers and airlines begin claiming the credit and disclosing SAF uptake volumes at Logan — data that will tell the industry whether the Massachusetts incentive materially shifts SAF economics at New England's largest gateway.