IRS and Treasury publish guidance on $1.25 a gallon SAF credit

The US Treasury Department and Internal Revenue Service have issued a notice covering the Sustainable Aviation Fuel (SAF) credit.

Part of the Inflation Reduction Act of 2022, the new $1.25 per gallon credit applies in 2023 and 2024.

To qualify, SAF must have a minimum reduction of 50% in lifecycle greenhouse gas emissions. There is an extra one cent credit for each one percent above 50%.

The Treasury and IRS are also keen for comments as it prepares additional guidance.

You can view the full PDF here.