Sec. 9. Sustainable aviation fuel credit
501 words·~2 min read·
/bill/116/hr/8769/ih/section-9A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 40A the following new section: For purposes of section 38, the sustainable aviation fuel credit for the taxable year is, with respect to each gallon of neat sustainable aviation fuel blending component used by the taxpayer in the production of a qualified mixture— $1.50, plus the applicable supplementary credit amount. For purposes of subsection (a), the applicable supplementary credit amount is $0.25, reduced (but not below zero) by the emissions reduction certification amount.
For purposes of paragraph (1), the emissions reduction certification amount is $0.01 for every 2 percentage points below 100 percent for which the neat sustainable aviation fuel blending component is certified to reduce emissions in comparison with conventional fuel under section 10 of the Sustainable Aviation Fuel Act. For purposes of this section, the term neat sustainable aviation fuel blending component means unblended liquid fuel— that consists of synthesized hydrocarbons, and that— meets the requirements of a Department of Defense specification for military jet fuel or an American Society of Testing and Materials specification for aviation turbine fuel, is derived from qualified feedstock, and is certified by the Environmental Protection Agency to— either— comply with such standards of the International Civil Aviation Organization for sustainable aviation fuels as have been adopted by the United States, or meet the definition of advanced biofuel under section 211(o)(1)(B) of the Clean Air Act ( 42 U.S.C. 7545(o)(1)(B) ), and achieve at least a 50-percent reduction in lifecycle greenhouse gas emissions in comparison with conventional jet fuel.
For purposes of this section, the term qualified mixture means a mixture of neat sustainable aviation fuel blending component and kerosene, which— is used by the taxpayer as aircraft fuel in a trade or business, or is sold by the taxpayer to any person for use as aircraft fuel. For purposes of this section, the terms qualified feedstock , lifecycle greenhouse gas emissions , and induced land-use change emissions have the meanings given such terms in section 3 of the Sustainable Aviation Fuel Act .
Neat sustainable aviation fuel blending component used in the production of a qualified mixture shall be taken into account— only if the sale or use described in subsection
(d)is in a trade or business of the taxpayer or other person, and for the taxable year in which such sale or use occurs. This section shall only apply to fuel produced before January 1, 2031. . Section 38(b) (relating to current year business credit) is amended by striking plus at the end of paragraph (32), by striking the period at the end of paragraph
(33)and inserting , plus , and by inserting after paragraph
(33)the following new paragraph: the sustainable aviation fuel credit determined under section 40B. . Section 40A(f) of such Code is amended by striking paragraph (4). The amendments made by this section shall apply to fuel produced after December 31, 2020.
Connectionstraces to 1
Traces to 1 document
U.S. Code
Citation graph
cites case law
Sec. 9
Sustainable aviation fuel credit
Cites 1Cited by 0 across 0 sources