Renewable Fuels Association Happy with Tax Credit Model for SAF
Lorrie Boyer
Reporter
“The tax credit is available to producers of sustainable aviation fuel that can demonstrate that the fuel they're producing reduces greenhouse gas emissions by 50% or more compared to petroleum-based jet fuel. So in order to make that demonstration, there has to be a carbon intensity analysis, there has to be a lifecycle analysis that's done to see what the CI value the carbon intensity value of that SAF is. And so we've been waiting for many months now for details on what methodology the Treasury Department is going to require for conducting that lifecycle analysis. We have been advocating that the Treasury should use the Department of Energy's GREET model.
Cooper adds that tax credits will be retroactive for staff that was produced during the 2023 calendar year.
“If it meets the 50% reduction and now we have the models or will soon have the models available to make that demonstration.”