On December 19, 2022, the Department of the Treasury (Treasury) issued guidance and a request for comments on the IRC section 40B Sustainable Aviation Fuel (SAF) tax credit established via section 13203 of the IRA.
Treasury’s guidance includes information on eligibility requirements, registration, the process of claiming the credit, and a safe harbor provision for the 50 percent lifecycle greenhouse gas emissions reduction requirement.
The request for comments seeks input to help Treasury and the IRS develop additional guidance for the SAF credit in the future. Specifically, the request seeks input on methodologies to determine lifecycle GHG emissions, supply chain traceability, SAF co-processed qualified mixture production, verification and certification, among other topics. Responses to the request were due February 17, 2023.