IRS Issues More Guidance on Sustainable Aviation Fuel Tax Credit

The IRS released additional guidance Friday on the sustainable aviation fuel tax credit, fixing a calculation issue in one of the models.

For companies to qualify for the credit, which ranges from $1.25 to $1.75 for each gallon of sustainable aviation fuel or SAF, the fuel must have a minimum reduction of 50% in lifecycle greenhouse gas emissions.

Notice 2024-74 clarifies that taxpayers who use a 40BSAF-GREET 2024 safe harbor to calculate its emission reduction percentage must use the October 2024 version of the model going forward.

• The calculation issue in a previous version was related to catalyst inputs for ...