26 U.S.C. § 40B — Sustainable aviation fuel credit

(a) In general. Your sustainable aviation fuel credit for the year equals the number of gallons of sustainable aviation fuel (SAF) in a qualified mixture, multiplied by $1.25 plus the applicable supplementary amount for that fuel. (b) Applicable supplementary amount. This adds 1 cent for every percentage point by which the fuel's lifecycle greenhouse gas emissions reduction goes above 50%. This bonus cannot exceed 50 cents total, so the full credit tops out at $1.75 a gallon. (c) Qualified mixture. A blend of SAF and kerosene counts if all four things are true: you produce the mixture in the United States; you use it (or sell it for use) in an aircraft; the sale or use is part of your ordinary business; and the fuel is actually loaded into the aircraft's tank in the United States. (d) Sustainable aviation fuel. (1) The fuel — the part of it that isn't kerosene — must meet ASTM International Standard D7566, or the Fischer-Tropsch rules under ASTM Standard D1655, Annex A1. It cannot be made by processing certain fat-based "applicable materials" together with a non-biomass feedstock. It cannot come from palm fatty acid distillates or petroleum. And it must be certified, under subsection (e), as cutting lifecycle greenhouse gas emissions by at least 50%. (2) "Applicable material" means monoglycerides, diglycerides, triglycerides, free fatty acids, and fatty acid esters. "Biomass" has the meaning given in section 45K(c)(3). (e) Lifecycle greenhouse gas emissions reduction percentage. This is how much less lifecycle emissions the fuel produces compared to regular petroleum-based jet fuel, measured using either the most recent Carbon Offsetting and Reduction Scheme for International Aviation adopted by the International Civil Aviation Organization with U.S. agreement, or a similar method that meets the criteria in section 211(o)(1)(H) of the Clean Air Act as it existed when this section became law. (f) Registration. No credit is allowed unless the fuel's producer or importer is registered with the Secretary under section 4101 and provides: certification from an independent party showing compliance with the tracking and reporting requirements of the international scheme described in (e) (or similar requirements for an alternate method), plus any other information the Secretary requires. (g) Coordination with excise credit. The credit must be reduced to account for any benefit the same fuel already got under section 6426 or 6427(e), so you're not paid twice. (h) Termination. This section does not apply to any sale or use after December 31, 2024.