Sustainable Aviation Fuel Credit 40B

What qualifies

Sale or use of sustainable aviation fuel (SAF), which achieves a lifecycle greenhouse gas emissions reduction of at least 50% compared to petroleum-based jet fuel; production and aircraft fueling must occur in the United States.

Incentive value

Base credit of $1.25/gallon of SAF. Bonus credit of $0.01/gallon for each percentage point by which the SAF lifecycle greenhouse gas emissions are reduced above 50% compared to petroleum-based jet fuel, up to $0.50/gallon.

Who is eligible

Registered producers or importers of sustainable aviation fuel.

When the credit is available

SAF sold or used after December 31, 2022, and before January 1, 2025.

How to claim the credit

There are two ways to claim the SAF credit. The first is through an excise tax claim. The second is through a general business credit that is nonrefundable and must be included in income. See Notice 2023-06 for additional details.

Disclaimer: None of the information presented on this website should be considered official legal or financial advice. Please contact a licensed tax professional for additional information.