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26 U.S. Code § 40B

IRA Statuatory Location:

13203

Tax Code Location:

26 U.S. Code § 40B

New or Modified Provision:

New

Eligible 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.

Tribal Eligibility:

No

Funded by:

U.S. Department of Treasury

Description

Provides a tax credit for the sale or use of sustainable aviation fuel (SAF), which achievies a lifecycle greenhouse gas emissions reduction of at least 50% as compared with petroleum-based jet fuel
Direct Pay Eligibility:
Up to $0.50/gallon depending on lifecycle greenhouse gas emissions of SAF relative to petroleum-based jet fuel.
Transferability:
No
Stackability:
Credit can be claimed against income tax or fuel excise tax. Credit included in gross income (similar to alcohol and biodiesel fuels credits).
Energy Community Bonus:
No

Relevant Announcements

N/A

Related Resources

Additional information is available on the Resources page.

Key Details

Period of Availability
January 1, 2023-December 31, 2024
Tax Mechanism:
Tax credit
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.
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