Treasury, IRS issues guidance on new SAF tax credit

▤ Summary

The Treasury Department and Internal Revenue Service on Dec. 19 issued a notice regarding the sustainable aviation fuel (SAF) credit. The notice also asks for public comments on various aspects of the statute, which will help Treasury and IRS in developing additional guidance. To qualify for the credit, the sustainable aviation fuel must have a minimum reduction of 50 percent in lifecycle greenhouse gas emissions. The notice provides a safe harbor for calculating the lifecycle greenhouse gas emissions reduction percentage. Finally, the notice explains that a claimant may choose how to claim the Sustainable Aviation Fuel Credit.

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