Sustainable Aviation Fuel (SAF) Credit

§ 40B. Sustainable aviation fuel credit(a) In generalFor purposes of section 38, the sustainable aviation fuel credit determined under this section for the taxable year is, with respect to any sale or use of a qualified mixture which occurs during such taxable year, an amount equal to the product of—(1) the number of gallons of sustainable aviation fuel in such mixture, multiplied by (2) the sum of—(A) $1.25, plus (B) the applicable supplementary amount with respect to such sustainable aviation fuel. (b) Applicable supplementary amountFor purposes of this section, the term “applicable supplementary amount” means, with respect to any sustainable aviation fuel, an amount equal to $0.01 for each percentage point by which the lifecycle greenhouse gas emissions reduction percentage with respect to such fuel exceeds 50 percent. In no event shall the applicable supplementary amount determined under this subsection exceed $0.50. (c) Qualified mixtureFor purposes of this section, the term “qualified mixture” means a mixture of sustainable aviation fuel and kerosene if—(1) such mixture is produced by the taxpayer in the United States, (2) such mixture is used by the taxpayer (or sold by the taxpayer for use) in an aircraft, (3) such sale or use is in the ordinary course of a trade or business of the taxpayer, and (4) the transfer of such mixture to the fuel tank of such aircraft occurs in the United States. (d) Sustainable aviation fuel(1) In generalFor purposes of this section, the term “sustainable aviation fuel” means liquid fuel, the portion of which is not kerosene, which—(A) meets the requirements of—(i) ASTM International Standard D7566, or (ii) the Fischer Tropsch provisions of ASTM International Standard D1655, Annex A1, (B) is not derived from coprocessing an applicable material (or materials derived from an applicable material) with a feedstock which is not biomass, (C) is not derived from palm fatty acid distillates or petroleum, and (D) has been certified in accordance with subsection (e) as having a lifecycle greenhouse gas emissions reduction percentage of at least 50 percent. (2) DefinitionsIn this subsection—(A) Applicable materialThe term “applicable material” means—(i) monoglycerides, diglycerides, and triglycerides, (ii) free fatty acids, and (iii) fatty acid esters. (B) BiomassThe term “biomass” has the same meaning given such term in section 45K(c)(3).