INFLATION REDUCTION ACT - ELIGIBILITY CRITERIA FOR SAF TAX CREDITS
To benefit from tax credits included in the IRA, eligible SAF must:
- Meet the requirements of ASTM International Standard D7566 or Fischer-Tropsch (FT) provisions of ASTM International Standard D1655, Annex A1.
- Be produced from applicable biomass material (defined as any organic material other than oil, natural gas, coal, or their derivatives) including monoglycerides, diglycerides, triglycerides, free fatty acids, and fatty acid esters.
- Not be co-processed with palm fatty acid distillates or petroleum.
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Under the blender’s tax credit |
Under the Clean Fuel Production Credit |
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Be certified as having a lifecycle GHG emissions reduction percentage of at least 50% in accordance with CORSIA or any similar methodology which satisfies criteria under the USA’s Clean Air Act. |
Have an emissions factor at or below 50kg CO e/MMBtu determined in accordance with CORSIA or any similar methodology which satisfies criteria under the USA’s Clean Air Act. |
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Be blended and sold in the USA; fuel produced outside the USA qualifies if it is blended and sold here. |
Be produced in the USA at a facility that meets prevailing wage for the locality and profession and apprenticeship requirements. |
