SAF (green aviation fuel) $1.25/gal tax credit from corn ethanol or soybeans

https://www.farmweeknow.com/policy/national/saf-tax-credit-guidance-released/article_b8fc78ea-072b-11ef-9336-7f336520c9ca.html

Govt to provide $1.25/gal tax credit for green jet fuel from corn ethanol or soybeans.

" The notice published by the U.S. Treasury Department helps direct how entities that are producing SAF can qualify for a tax credit under Section 40B of the Internal Revenue Code, which is a tax credit available for SAF produced in 2023 and 2024. The notice also provides a “roadmap” for the development of the guidance that will govern production in 2025 and beyond under the Section 45Z tax credit."

“The SAF credit applies to a qualified fuel mixture containing SAF for certain sales or uses after Dec. 31, 2022, and before Jan. 1, 2025, and is $1.25 for each gallon of sustainable aviation fuel in a qualified mixture. To qualify for the credit, the SAF must have a minimum reduction of 50% in lifecycle greenhouse gas emissions. Additionally, there is a supplemental credit of 1 cent for each percent that the reduction exceeds 50%, for a maximum increase of 50 cents.”

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