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Sustainable Aviation Fuel Credit – 26 U.S. Code § 40B

IRA Statuatory Location:


Tax Code Location:

26 U.S. Code § 40B

New or Modified Provision:


Eligible Recipients:

Clean Fuel Producers; Aviation

Tribal Eligibility:



Funded by:

U.S. Department of Treasury


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% ascompared with petroleum-based jet fuel 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 occurin the United States.
Direct Pay Eligibility:
Credit can be claimed against income tax or fuel excise tax. Credit included ingross income (similar to alcohol and biodiesel fuels credits).
Energy Community Bonus:

Relevant Announcements

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:
$0.01/gallon for each percentage point by which the SAF lifecycle greenhouse gas emissions are reduced above 50 percent compared to petroleum-based jet fuel, up to $0.50/gallon.
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