New guidance from the IRS (Notice 2024-6) provides additional safe harbors for taxpayers calculating the lifecycle greenhouse gas emissions when seeking to claim the new Sustainable Aviation Fuel credit.
The new notice builds on previous interim guidance released at the end of 2022 (Notice 2023-6). The Sustainable Aviation Fuel credit under Section 40B was created by the Inflation Reduction Act and provides a refundable $1.25 per gallon credit for blending sustainable aviation fuel that meets specific lifecycle greenhouse gas emissions standards.
The new guidance provides a safe harbor for the calculation of life-cycle greenhouse gas emissions based on the EPA’s Renewable Fuel Standard Program.
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