Sec. 11. Sustainable aviation fuel production property added to Energy Credit
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Section 48 of the Internal Revenue Code of 1986 is amended— in subsection (a)— in paragraph (2)(A)(i)— in subclause (III), by striking and , and by adding at the end the following new subclause: sustainable aviation fuel production property, and , in paragraph (3)(A), by striking or at the end of clause (vi), inserting or at the end of clause (vii), and by adding at the end the following new clause: sustainable aviation fuel production property, , and by adding at the end the following new paragraph: In the case of any energy property described in paragraph (3)(A)(viii) the construction of which begins before January 1, 2035, the energy percentage determined under paragraph
(2)shall be equal to— in the case of any property the construction of which begins after December 31, 2026, and before January 1, 2028, 24 percent, in the case of any property the construction of which begins after December 31, 2027, and before January 1, 2029, 18 percent, and in the case of any property the construction of which begins after December 31, 2028, and before January 1, 2035, 12 percent. ; and in subsection (c), by adding at the end the following new paragraph: The term sustainable aviation fuel production property means— property which produces sustainable aviation fuel (as defined in section 40B(b)) from qualified feedstock (as defined in section 40B(d)), or property directly related to enabling the production or distribution of sustainable aviation fuel. The Secretary shall, by regulations, provide for recapturing the benefit of any credit allowable under subsection (a)(3)(viii) with respect to any sustainable aviation fuel production property if the sustainable aviation fuel production of such property comprises less than 80 percent of the total fuel production of such property in any of the 5 taxable years immediately following the taxable year in which such property was placed in service. . The amendments made by this section shall apply to fuel produced after December 31, 2021.