Sustainable Aviation Fuel (SAF) Tax Credit

Producers of SAF are eligible for a tax credit of $1.25 per gallon. Qualifying SAF must reduce greenhouse gas (GHG) emissions by 50%. SAF that decreases GHG emissions by more than 50% is eligible for an additional $0.01 per gallon for each percent the reduction exceeds 50%, up to $0.50 per gallon. To be eligible, SAF producers must be registered with the Internal Revenue Service (IRS). Additional terms and conditions apply.

For more information, see the IRS SAF Tax Credit website and guidance issued in Notice 2024-37. The guidance provides additional safe harbors using the modified version of the Argonne National Laboratory’s Greenhouse gases, Regulated Emissions, and Energy use in Technologies (R&D GREET) model to calculate the lifecycle greenhouse gas emissions reduction percentage of SAF.

(Reference Public Law 117-169 and 26 U.S. Code 40B)