SUSTAINABLE AVIATION FUEL AND THE NEW GREEN ERA
January 29, 2024
On December 15, 2023, the United States Department of Treasury (“Treasury”), in coordination with the Departments of Transportation, Agriculture, Energy, and the Environmental Protection Agency, issued new guidance on sustainable aviation fuel (“SAF”) and corresponding tax credits. To qualify for a $1.25 tax credit per gallon under the new guidance, eligible SAFs must achieve an emissions reduction of at least 50 percent when compared to petroleum-based fuel. While Treasury officials primarily drafted the guidance to implement provisions of the Inflation Reduction Act, it also furthers the Biden administration’s effort to encourage emissions reduction strategies in carbon-intensive sectors. Congressional leadership and department officials also plan to announce updates to the Department of Energy’s Greenhouse Gases, Regulated Emissions, and Energy Use in Transportation model in the coming months.
If you have any questions, please contact Evelyn Sahr at 202.659.6622 or esahr@eckertseamans.com; Drew Derco at 202-659-6665 or dderco@eckertseamans.com; Jay Julien at 202.659.6648 or jjulien@eckertseamans.com, or any other attorney at Eckert Seamans with whom you have been working.
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