The NBAA welcomes the decision from the US Treasury on the sustainable aviation fuel tax credit and is eager for remaining guidance on lifecycle emissions next year.
The NBAA has welcomed guidance from the US Treasury Department on the fuel products eligible for the SAF Blender’s Tax Credit under section 40B of the Internal Revenue Code.
The decision, Notice 2024-06, follows initial guidance from the Treasury Department under Notice 2023-06, which established rules for lifecycle greenhouse gas emissions for fuels.
Additionally, the Biden administration plans to release an updated version of the Department of Energy’s Greenhouse Gases, Regulated Emissions and Energy Use in Transportation (GREET) model by 1 March, 2024. GREET is a tool that measures the life-cycle emissions of vehicle technologies, fuels, products and energy systems. The updated GREET model provides a robust methodology for SAF producers to determine the lifecycle GHG emissions of their products to qualify for the SAF credit.
“We are optimistic about the guidance from the Treasury Department,” says NBAA president and CEO Ed Bolen. “It’s an important step toward the increased production and distribution of SAF, which is key to business aviation meeting its mission to net-zero carbon emissions by 2050. We are eager for the release of an updated GREET model in the spring.”
SAF is a key component in business aviation’s commitment to achieve net-zero carbon emissions by 2050, and the industry was one of its first advocates, helping to expand production, availability and use. Today, the fuels are powering an increasing number of flights, but the amount of SAF available remains insufficient to meet demand. As a result, the industry continues to work with stakeholders globally to accelerate production and availability.
The NBAA has welcomed guidance from the US Treasury Department on the fuel products eligible for the SAF Blender’s Tax Credit under section 40B of the Internal Revenue Code.
The decision, Notice 2024-06, follows initial guidance from the Treasury Department under Notice 2023-06, which established rules for lifecycle greenhouse gas emissions for fuels.
Additionally, the Biden administration plans to release an updated version of the Department of Energy’s Greenhouse Gases, Regulated Emissions and Energy Use in Transportation (GREET) model by 1 March, 2024. GREET is a tool that measures the life-cycle emissions of vehicle technologies, fuels, products and energy systems. The updated GREET model provides a robust methodology for SAF producers to determine the lifecycle GHG emissions of their products to qualify for the SAF credit.
“We are optimistic about the guidance from the Treasury Department,” says NBAA president and CEO Ed Bolen. “It’s an important step toward the increased production and distribution of SAF, which is key to business aviation meeting its mission to net-zero carbon emissions by 2050. We are eager for the release of an updated GREET model in the spring.”
SAF is a key component in business aviation’s commitment to achieve net-zero carbon emissions by 2050, and the industry was one of its first advocates, helping to expand production, availability and use. Today, the fuels are powering an increasing number of flights, but the amount of SAF available remains insufficient to meet demand. As a result, the industry continues to work with stakeholders globally to accelerate production and availability.
