On Friday, December 15, 2023, the U.S. Treasury released updated guidance on the new §40B Sustainable Aviation Fuel Blender Credit. Producers must register with U.S. Treasury and provide third-party certification that their fuel meets the minimum 50% greenhouse gas reduction. The new guidance contains an updated Model Certificate, which supersedes the draft certificate published last December. An interagency working group comprised of the Departments of Energy and Transportation, FAA, EPA and USDA is committed to releasing an updated GREET model by March 1, 2024, that will meet the requirements of the tax credit and count emissions reductions from climate-smart agriculture practices and other technologies. The guidance provides a safe harbor for SAF producers registered to generate advanced biofuel RINs under the Renewable Fuel Standard and certified by a QAP program. Clean Fuels welcomed the guidance as a first step toward enabling U.S. producers to utilize the GREET model and meeting the administration’s grand challenge for SAF.
IRS Updates Guidance on SAF Tax Incentive
