Deadline: SAF credit applies to certain fuel mixtures that contain SAF sold or used after 12/31/2022 and before 1/1/2025.
Eligible Applicants: Producers of SAF
Fuel Type: Sustainable Aviation Fuel blend must have 50% minimum reduction in lifecycle GHG emissions.
Agency: Department of Energy
Description: The SAF credit is $1.25 for each gallon of SAF in a qualified mixture. To qualify for the credit, the SAF must have a minimum reduction of 50% in lifecycle greenhouse gas emissions. There is also a supplemental credit of one cent for each percent that the reduction exceeds 50%. There are two ways to claim the SAF credit: 1) through an excise tax claim, or 2) a general business credit that is nonrefundable and must be included in income.
Eligible Projects: SAF must be certified to have a lifecycle greenhouse gas emissions reduction percentage of at least 50 percent. Section 40B(e) defines the term “lifecycle greenhouse gas emissions reduction percentage” (emissions reductions percentage) to mean, with respect to any sustainable aviation fuel, as compared with petroleum-based jet fuel, as defined in accordance with (1) the most recent Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) that has been adopted by the International Civil Aviation Organization (ICAO) with the agreement of the US or (2) any similar methodology that satisfies the criteria under ss211(o)(1)(H) of the Clean Air Act (42 U.S.C. 7545(o)(1)(H)), as in effect on Aug 16, 2022 (CAA).
More Information: Sustainable Aviation Fuel Credit
