Developed by: Inflation Reduction Act
Federal Agency: Department of the Treasury
Production Tax Credit
Description: Provides a tax credit for the sale or use of sustainable aviation fuel (SAF), which achieves a lifecycle greenhouse gas emissions reduction of at least 50% as compared with petroleum-based jet fuel
Recipients: Producers and blenders of SAF-kerosene fuel mixtures for aviation. Qualified SAF mixture must be made in the United States, and fueling of the aircraft must occur in the United States.
Timing: January 1, 2023-December 31, 2024
- Base Credit Amount: $1.25/gallon of SAF.
- Bonus Credit Amount: Up to $0.50/gallon depending on lifecycle greenhouse gas emissions of SAF relative to petroleum-based jet fuel.
More information: N/A