Sustainable Aviation Fuel Credit; Registration; Certificates; Request for Public Comments

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Internal Revenue Bulletin › IRB 2023 › Notice › Notice 2023-6

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Part III - Administrative, Procedural, and Miscellaneous

Sustainable Aviation Fuel Credit; Registration; Certificates; Request for Public

Comments

Notice 2023-06

SECTION 1. PURPOSE

This notice provides guidance on the new sustainable aviation fuel credits under

§§ 40B and 6426(k) of the Internal Revenue Code (Code) (collectively referred to as a

SAF credit or the SAF credit) and related credit and payment rules under §§ 34(a)(3),

38, 87, and 6427(e)(1). This notice also provides rules related to the § 4101 registration

requirements. Finally, this notice requests comments from the public related to the SAF

credit to assist the Department of the Treasury (Treasury Department) and the Internal

Revenue Service (IRS) in developing additional guidance on the SAF credit in the

future.

SECTION 2. OVERVIEW

Section 13203 of Public Law 117-169, 136 Stat. 1818 (August 16, 2022), commonly

known as the Inflation Reduction Act of 2022, added § 40B and amended §§ 38(b),

40A, 87, 4101(a), 6426, and 6427(e)(1), enacting a sustainable aviation fuel credit,

effective for certain fuel mixtures containing sustainable aviation fuel sold or used after

December 31, 2022, and prior to January 1, 2025.

The SAF credit is equal to the product of— (1) the number of gallons of sustainable

aviation fuel in a qualified mixture, multiplied by (2) the sum of— (A) $1.25, plus (B) the

“applicable supplementary amount” (as calculated under section 4.05 of this notice) with

respect to such sustainable aviation fuel. See §§ 40B(a) and 6426(k). In general, the

applicable supplementary amount increases the $1.25 base credit by $0.01 for each

percentage point by which the “lifecycle greenhouse gas emissions reduction

percentage” (as defined in section 3.01(4) of this notice) of the sustainable aviation fuel

exceeds 50 percent

nder section 4.05 of this notice) with

respect to such sustainable aviation fuel. See §§ 40B(a) and 6426(k). In general, the

applicable supplementary amount increases the $1.25 base credit by $0.01 for each

percentage point by which the “lifecycle greenhouse gas emissions reduction

percentage” (as defined in section 3.01(4) of this notice) of the sustainable aviation fuel

exceeds 50 percent. See section 3 of this notice for the requirements of sustainable

aviation fuel and qualified mixtures; see section 4 of this notice for calculating the

applicable supplementary amount and lifecycle greenhouse gas emissions reduction

percentage.

For a claimant to qualify for the SAF credit, §§ 40B(f)(1) and 6426(k)(3) require the

producer or importer of the sustainable aviation fuel to be registered with the IRS under

§ 4101. See section 5 of this notice for information on how a producer or importer may

A claimant who qualifies for the SAF credit may either: (1) claim an excise tax credit

under § 6426(k), in which case the claimant first claims the SAF credit against its

§ 4081 excise tax liability for a particular quarter and, to the extent that the credit

exceeds the claimant’s § 4081 excise tax liability for that quarter, the claimant may

claim either a payment under § 6427(e)(1) or a refundable income tax credit under

§ 34(a)(3); or (2) claim a nonrefundable § 38 general business income tax credit under

§ 38(b)(35) and include the amount of the § 40B credit in gross income under § 87. See

section 6 of this notice regarding the procedures for making a claim as well as the claim

requirements.

Sections 40B and 6426(k) allow a SAF credit for the production of a qualified mixture

which, broadly speaking, is a mixture of sustainable aviation fuel and kerosene

business income tax credit under

§ 38(b)(35) and include the amount of the § 40B credit in gross income under § 87. See

section 6 of this notice regarding the procedures for making a claim as well as the claim

requirements.

Sections 40B and 6426(k) allow a SAF credit for the production of a qualified mixture

which, broadly speaking, is a mixture of sustainable aviation fuel and kerosene. Section

40B(d)(1)(A) defines sustainable aviation fuel by reference to two American Society for

Testing and Materials (ASTM) specifications: ASTM D7566 and certain Fischer

Tropsch provisions of ASTM D1655 Annex A1. The referenced ASTM specifications

describe two distinct processes to produce a qualified mixture. Generally, under ASTM

D7566, a person produces a qualified mixture by mixing a synthetic blending

component with kerosene. In contrast, under ASTM D1655 Annex A1, a person

produces a qualified mixture by co-processing an appropriate feedstock with a

petroleum feedstock during the production of kerosene that results in a qualified

mixture, although no separate step of “mixing” a sustainable aviation fuel with kerosene

occurs.

This notice primarily addresses the SAF credit requirements applicable to a qualified

mixture produced under ASTM D7566. Treasury and the IRS, in consultation with the

Department of Transportation and the Federal Aviation Administration, understand that

no jet fuel is currently produced in the United States under ASTM D1655 Annex A1 that

would qualify for the SAF credit. As a result, this notice provides limited information with

respect to ASTM D1655 Annex A1 and requests comments with respect to ASTM

D1655 Annex A1 so that future guidance may accurately address these types of claims.

SECTION 3. SUSTAINABLE AVIATION FUEL; QUALIFIED MIXTURES; TAXATION

OF SUSTAINABLE AVIATION FUELS AND QUALIFIED MIXTURES

.01 Sustainable aviation fuel

alify for the SAF credit. As a result, this notice provides limited information with

respect to ASTM D1655 Annex A1 and requests comments with respect to ASTM

D1655 Annex A1 so that future guidance may accurately address these types of claims.

SECTION 3. SUSTAINABLE AVIATION FUEL; QUALIFIED MIXTURES; TAXATION

OF SUSTAINABLE AVIATION FUELS AND QUALIFIED MIXTURES

.01 Sustainable aviation fuel. Under § 40B(d)(1), the term sustainable aviation fuel

means the portion of liquid fuel that is not kerosene that (i) either (A) meets the

specifications of “ASTM D7566” (as defined in section 3.01(1)(a) of this notice to mean

the ASTM D7566 Annexes), or (B) meets the specifications of ASTM D1655 Annex A1

(as defined in section 3.01(1)(b) of this notice); and (ii) satisfies the requirements of

section 3.01(2) through (4) of this notice regarding sustainability. A liquid fuel that

meets the specifications of one of the ASTM D7566 Annexes or meets the

specifications of ASTM D1655 Annex A1, but does not meet the requirements of section

3.01(2) through (4) of this notice is ineligible for the SAF credit.

Sustainable aviation fuel may be categorized as either (i) a SAF synthetic blending

component or (ii) a co-processed liquid fuel that was produced by co-processing

petroleum with synthesized hydrocarbons derived from synthesis gas via the Fischer

Tropsch process (FT hydrocarbons). This notice refers to a liquid fuel that meets the

specifications of one of the ASTM D7566 Annexes and that satisfies the requirements of

3.01(2) through (4) of this notice as a SAF synthetic blending component. This notice

refers to a liquid fuel that meets the specifications of ASTM D1655 Annex A1, in which

the FT hydrocarbons were derived from biomass that satisfies the requirements of

section 3.01(2) through (4) of this notice as a SAF co-processed qualified mixture

ASTM D7566 Annexes and that satisfies the requirements of

3.01(2) through (4) of this notice as a SAF synthetic blending component. This notice

refers to a liquid fuel that meets the specifications of ASTM D1655 Annex A1, in which

the FT hydrocarbons were derived from biomass that satisfies the requirements of

section 3.01(2) through (4) of this notice as a SAF co-processed qualified mixture. FT

hydrocarbons, which are derived from biomass that satisfies the requirements of section

3.01(2) through (4) of this notice, are referred to as SAF FT hydrocarbons.

(1) ASTM International specifications. For purposes of this notice, references to

ASTM or ASTM International Standard are references to specifications published by

ASTM International (formerly ASTM). For availability of ASTM specifications, see

§ 48.4081-1(d) of the Manufacturers and Retailers Excise Tax Regulations (26 CFR part

48).

(a) ASTM D7566 Annexes. The term ASTM D7566 Annexes means any of the

annexes in ASTM D7566 that provide the specifications for a pathway to create a

synthetic blending component that can be blended with ASTM D1655 kerosene (as

defined in section 3.02(2)(a) of this notice) to make a qualified mixture.

(b) ASTM D1655 Annex A1. The term ASTM D1655 Annex A1 means the

Fischer Tropsch provisions of ASTM D1655 Annex A1 that are contained in section

A1.2.2.2, which provides a pathway for producing a liquid fuel by co-processing up to

five percent of FT hydrocarbons with petroleum to make a qualified mixture. For

purposes of this notice, the term petroleum includes any conventionally sourced

hydrocarbons permitted under ASTM D1655 Annex A1.

Liquid fuel produced under section A1.2.2.1 does not qualify for the SAF credit

because section A1.2.2.1 defines a pathway for producing a liquid fuel from co-

processing an applicable material (or materials derived from an applicable material) with

a feedstock that is not biomass (for example, petroleum), which § 40B(d)(1)(B) excludes

from the SAF credit

s permitted under ASTM D1655 Annex A1.

Liquid fuel produced under section A1.2.2.1 does not qualify for the SAF credit

because section A1.2.2.1 defines a pathway for producing a liquid fuel from co-

processing an applicable material (or materials derived from an applicable material) with

a feedstock that is not biomass (for example, petroleum), which § 40B(d)(1)(B) excludes

from the SAF credit. See section 3.01(2) of this notice.

(2) Not derived from co-processing applicable materials. To qualify as sustainable

aviation fuel, the liquid fuel must not be derived from co-processing an “applicable

material” (or materials derived from an applicable material) with a feedstock that is not

biomass (within the meaning of § 45K(c)(3) of the Code). Section 40B(d)(2)(A) defines

the term applicable material for this purpose to mean (i) monoglycerides, diglycerides,

and triglycerides, (ii) free fatty acids, and (iii) fatty acid esters. Section 45K(c)(3) defines

the term biomass to mean any organic material other than (A) oil and natural gas (or

any product thereof), and (B) coal (including lignite) or any product thereof.

(3) Not derived from palm fatty acid distillates or petroleum. To qualify as

sustainable aviation fuel, the liquid fuel must not be derived from palm fatty acid

distillates or petroleum.

(4) Lifecycle greenhouse gas emissions reduction percentage. To qualify as

sustainable aviation fuel, the liquid fuel must have been certified in accordance with

§ 40B(e) as having a lifecycle greenhouse gas emissions reduction percentage of at

least 50 percent

oleum. To qualify as

sustainable aviation fuel, the liquid fuel must not be derived from palm fatty acid

distillates or petroleum.

(4) Lifecycle greenhouse gas emissions reduction percentage. To qualify as

sustainable aviation fuel, the liquid fuel must have been certified in accordance with

§ 40B(e) as having a lifecycle greenhouse gas emissions reduction percentage of at

least 50 percent. Section 40B(e) defines the term lifecycle greenhouse gas emissions

reduction percentage to mean, with respect to any sustainable aviation fuel, the

percentage reduction in lifecycle greenhouse gas emissions achieved by such fuel as

compared with petroleum-based jet fuel, as defined in accordance with (i) the most

recent Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA)

that has been adopted by the International Civil Aviation Organization (ICAO) with the

agreement of the United States and is set out in Annex 16 - Environmental Protection:

Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) (2018),

https://elibrary.icao.int/home/product-details/229739, and related documents, or (2) any

similar methodology that satisfies the criteria under § 211(o)(1)(H) of the Clean Air Act

(42 U.S.C. 7545(o)(1)(H)), as in effect on August 16, 2022. See section 4.04 of this

notice for a safe harbor to calculate the lifecycle greenhouse gas emissions reduction

percentage.

.02 Qualified mixture.

18),

https://elibrary.icao.int/home/product-details/229739, and related documents, or (2) any

similar methodology that satisfies the criteria under § 211(o)(1)(H) of the Clean Air Act

(42 U.S.C. 7545(o)(1)(H)), as in effect on August 16, 2022. See section 4.04 of this

notice for a safe harbor to calculate the lifecycle greenhouse gas emissions reduction

percentage.

.02 Qualified mixture.

(1) Requirements. Under § 40B(c), a qualified mixture means a mixture of

sustainable aviation fuel and kerosene, but only if— (1) such mixture is produced by the

taxpayer in the United States (defined in § 7701(a)(9) of the Code to mean the states

and the District of Columbia); (2) such mixture is used by the taxpayer (or sold by the

taxpayer for use) in an aircraft; (3) such sale or use is in the ordinary course of a trade

or business of the taxpayer; and (4) the transfer of such mixture to the fuel tank of such

aircraft occurs in the United States.

A qualified mixture may be produced by either mixing a SAF synthetic blending

component with kerosene (to produce a SAF qualified mixture; see section 3.02(2) of

this notice) or by co-processing SAF FT hydrocarbons with petroleum to produce a co-

processed liquid fuel (which is a SAF co-processed qualified mixture; see section

3.02(3) of this notice).

(2) SAF qualified mixture. A SAF qualified mixture means a mixture of a SAF

synthetic blending component (within the meaning of section 3.01 of this notice) with

ASTM D1655 kerosene (as defined in section 3.02(2)(a) of this notice) that meets the

requirements of ASTM D7566 (as defined in section 3.02(2)(b) of this notice) and which

may be regarded as ASTM D1655 compliant SAF.

this notice).

(2) SAF qualified mixture. A SAF qualified mixture means a mixture of a SAF

synthetic blending component (within the meaning of section 3.01 of this notice) with

ASTM D1655 kerosene (as defined in section 3.02(2)(a) of this notice) that meets the

requirements of ASTM D7566 (as defined in section 3.02(2)(b) of this notice) and which

may be regarded as ASTM D1655 compliant SAF.

(a) ASTM D1655 kerosene and ASTM D1655 compliant SAF. The term ASTM

D1655 kerosene means petroleum-based kerosene that meets the specifications set

forth in ASTM D1655 and does not include liquid fuel co-processed with FT

hydrocarbons or the addition of a synthetic blending component.

The term ASTM D1655 compliant SAF means ASTM D1655 kerosene that has been

blended with a SAF synthetic blending component described in a specific ASTM D7566

Annex and meets the batch specifications described in ASTM D7566, Table 1. It also

means kerosene produced by co-processing SAF FT hydrocarbons with petroleum

under ASTM D1655 Annex A1. Once the mixture meets those batch specifications or is

produced under ASTM D1655 Annex A1, the mixture may be regarded as jet fuel under

ASTM D1655. ASTM D1655 compliant SAF is fully fungible with ASTM D1655

kerosene.

The terms “ASTM D1655 kerosene” and “ASTM D1655 compliant SAF” are not

ASTM designations, but rather are used in this notice to distinguish between two types

of fuel (for federal excise tax purposes) that qualify as jet fuel under the ASTM D1655

specifications for jet fuel.

may be regarded as jet fuel under

ASTM D1655. ASTM D1655 compliant SAF is fully fungible with ASTM D1655

kerosene.

The terms “ASTM D1655 kerosene” and “ASTM D1655 compliant SAF” are not

ASTM designations, but rather are used in this notice to distinguish between two types

of fuel (for federal excise tax purposes) that qualify as jet fuel under the ASTM D1655

specifications for jet fuel.

(b) ASTM D7566. The term ASTM D7566 means the batch specifications set

forth under ASTM D7566, Table 1, which includes the blending requirements for each

synthetic blending component and the overall specifications and requirements for the

blended mixture to be regarded as ASTM D1655 compliant SAF. Blending percentage

requirements for various synthetic blending components with ASTM D1655 kerosene

are listed in section 6 of ASTM D7566 and range from 10 to 50 percent.

(3) SAF co-processed qualified mixture. A SAF co-processed qualified mixture

means a co-processed liquid fuel that meets the requirements of ASTM D1655 Annex

A1 (within the meaning of section 3.01(1)(b) of this notice) and in which the biomass

used to create the FT hydrocarbons satisfies the requirements of section 3.01(2)

through (4) of this notice.

ASTM D1655 Annex A1 provides a pathway for producing a liquid fuel by co-

processing FT hydrocarbons with petroleum that results in a qualified mixture if the

producer uses SAF FT hydrocarbons. This process is functionally different from mixing

two distinct products, such as a synthetic blending component and kerosene, to create

a qualified mixture. Here, petroleum-based hydrocarbons and up to five percent of SAF

FT hydrocarbons are processed together to produce kerosene, a portion of which was

derived from sustainable sources. Before processing, neither the petroleum-based

hydrocarbons nor the SAF FT hydrocarbons qualify as kerosene.

As a result, a SAF co-processed qualified mixture must be produced in the United

States

ified mixture. Here, petroleum-based hydrocarbons and up to five percent of SAF

FT hydrocarbons are processed together to produce kerosene, a portion of which was

derived from sustainable sources. Before processing, neither the petroleum-based

hydrocarbons nor the SAF FT hydrocarbons qualify as kerosene.

As a result, a SAF co-processed qualified mixture must be produced in the United

States. A co-processed liquid fuel that is imported into the United States is ineligible for

the SAF credit. The requirement that the SAF co-processed qualified mixture be

produced in the United States is not met by mixing co-processed liquid fuel with

additional ASTM D1655 kerosene or ASTM D1655 compliant SAF (as defined in section

3.02(2)(a) of this notice) in the United States.

Only the portion of the SAF co-processed qualified mixture attributable to the SAF

FT hydrocarbons (derived from biomass) qualifies for the SAF credit. Conversely, no

portion of the kerosene derived from a petroleum-based source in a SAF co-processed

qualified mixture qualifies for the SAF credit.

.03 Taxation of sustainable aviation fuels and qualified mixtures.

(1) In general.

(a) Taxable fuel. Section 4081(a)(1) imposes an excise tax on certain removals,

entries, and sales of taxable fuel. Section 4083(a) defines taxable fuel as gasoline,

diesel fuel, and kerosene. The term kerosene, for the purpose of kerosene-type jet fuel,

means any liquid covered by ASTM D1655 or military specification MIL–DTL–5624T

(Grade JP–5) or MIL–DTL–83133E (Grade JP–8).

n general.

(a) Taxable fuel. Section 4081(a)(1) imposes an excise tax on certain removals,

entries, and sales of taxable fuel. Section 4083(a) defines taxable fuel as gasoline,

diesel fuel, and kerosene. The term kerosene, for the purpose of kerosene-type jet fuel,

means any liquid covered by ASTM D1655 or military specification MIL–DTL–5624T

(Grade JP–5) or MIL–DTL–83133E (Grade JP–8).

(b) Blended taxable fuel. Section 4081(b)(1) imposes an excise tax on taxable

fuel removed or sold by the “blender” thereof, subject to certain credits provided in

§ 4081(b)(2). Section 48.4081-1(b) defines blender as any person that produces

“blended taxable fuel.” Section 48.4081-1(c)(1)(i) generally defines the term blended

taxable fuel as any taxable fuel that is produced outside the bulk transfer/terminal

system by mixing (A) taxable fuel with respect to which tax has been imposed under

§ 4041(a)(1) or 4081(a) (other than taxable fuel for which a credit or payment has been

allowed) and (B) any other liquid on which tax has not been imposed under § 4081.

(2) SAF synthetic blending component. A SAF synthetic blending component will

not be treated as a taxable fuel for purposes of the excise tax imposed on taxable fuel

under § 4081. A liquid fuel produced under the ASTM D7566 Annexes cannot, by

definition, meet the specifications of ASTM D1655 until it is blended with kerosene.

Accordingly, a SAF synthetic blending component is not treated as a taxable fuel for

purposes of § 4081(a). However, the SAF synthetic blending component is taxable

under § 4041(a) or (c) if it is used in a diesel-powered highway vehicle or a diesel-

powered train, or as fuel in aviation.

nnexes cannot, by

definition, meet the specifications of ASTM D1655 until it is blended with kerosene.

Accordingly, a SAF synthetic blending component is not treated as a taxable fuel for

purposes of § 4081(a). However, the SAF synthetic blending component is taxable

under § 4041(a) or (c) if it is used in a diesel-powered highway vehicle or a diesel-

powered train, or as fuel in aviation.

(3) SAF qualified mixture. After a SAF qualified mixture is produced, the entire

mixture is taxable under § 4081. The SAF qualified mixture is taxable under § 4081(a) if

produced within the bulk transfer/terminal system. Alternatively, the SAF qualified

mixture is taxable under § 4081(b) if it is produced with previously-taxed kerosene

outside the bulk transfer/terminal system (subject to the credit for previously-taxed fuel

under § 4081(b)(2)).

(4) Co-processed liquid fuel and SAF co-processed qualified mixture. Both co-

processed liquid fuel and a SAF co-processed qualified mixture meet the specifications

of ASTM D1655 and are therefore kerosene. As a result, any product produced under

ASTM D1655 Annex A1 is a taxable fuel for purposes of § 4081(a).

SECTION 4. LIFECYCLE GREENHOUSE GAS EMISSIONS REDUCTION

PERCENTAGE AND APPLICABLE SUPPLEMENTARY AMOUNT

.01 Applicability. The methods of determining the lifecycle greenhouse gas

emissions reduction percentage and the applicable supplementary amount under

section 4 of this notice apply only to a SAF qualified mixture.

.02 In general. The SAF synthetic blending component must be certified, in

accordance with § 40B(e), as having a lifecycle greenhouse gas emissions reduction

percentage of at least 50 percent. See section 4.04 of this notice. This requirement

also applies to § 6426(k). See § 6426(k)(2)

applicable supplementary amount under

section 4 of this notice apply only to a SAF qualified mixture.

.02 In general. The SAF synthetic blending component must be certified, in

accordance with § 40B(e), as having a lifecycle greenhouse gas emissions reduction

percentage of at least 50 percent. See section 4.04 of this notice. This requirement

also applies to § 6426(k). See § 6426(k)(2).

Once the SAF synthetic blending component meets the minimum 50 percent

reduction threshold, the lifecycle greenhouse gas emissions reduction percentage is

then used to calculate the applicable supplementary amount of the SAF credit under

§ 40B(b) or 6426(k). The applicable supplementary amount increases the $1.25 base

credit by $0.01 for each whole percentage point by which the lifecycle greenhouse gas

emissions reduction percentage with respect to such fuel exceeds 50 percent. The

applicable supplementary amount determined under §§ 40B(b) and 6426(k) is

calculated in $0.01 increments and cannot exceed $0.50.

.03 Lifecycle greenhouse gas emissions of petroleum-based jet fuel. Until further

notice, for purposes of calculating the lifecycle greenhouse gas emissions reduction

percentage, the IRS will treat the lifecycle greenhouse gas emissions of petroleum-

based jet fuel as equal to 89 grams of carbon dioxide equivalent per megajoule of

energy or 89 gCO2e/MJ as the baseline. This is the standard adopted by the ICAO.

See Annex 16 - Environmental Protection: Carbon Offsetting and Reduction Scheme for

International Aviation (CORSIA) (2018), https://elibrary.icao.int/home/product-

details/229739.

.04 Calculating the lifecycle greenhouse gas emissions reduction percentage; safe

harbor. The IRS will accept a lifecycle greenhouse gas emissions reduction percentage

calculated from the ICAO’s most recent publication of the CORSIA Default Life Cycle

Emissions Values for CORSIA Eligible Fuels

International Aviation (CORSIA) (2018), https://elibrary.icao.int/home/product-

details/229739.

.04 Calculating the lifecycle greenhouse gas emissions reduction percentage; safe

harbor. The IRS will accept a lifecycle greenhouse gas emissions reduction percentage

calculated from the ICAO’s most recent publication of the CORSIA Default Life Cycle

Emissions Values for CORSIA Eligible Fuels. At the time of publication of this notice,

the most recently published version (Fourth Edition, June 2022) is available at:

https://www.icao.int/environmental-protection/CORSIA/Pages/CORSIA-Eligible-

Fuels.aspx.

The IRS will also accept a lifecycle greenhouse gas emissions reduction percentage

calculated from the ICAO’s most recent publication of the CORSIA Methodology for

Calculating Actual Life Cycle Emissions Values. At the time of publication of this notice,

the most recently published version (Third Edition, June 2022) is available at:

https://www.icao.int/environmental-protection/CORSIA/Pages/CORSIA-Eligible-

Fuels.aspx.

The lifecycle greenhouse gas emissions reduction percentage is calculated by

multiplying a fraction, the numerator of which is the baseline for the lifecycle

greenhouse gas emissions of petroleum-based jet fuel (LC) minus the lifecycle

emissions value (LSf), and the denominator of which is the baseline (LC), by 100

percent ([(LC - LSf)/ LC] × 100% = lifecycle greenhouse gas emissions reduction

percentage). The lifecycle greenhouse gas emissions reduction percentage must be

rounded down to the nearest whole percent.

The registered producer or importer of the SAF synthetic blending component must

record the lifecycle greenhouse gas emissions reduction percentage on the Certificate

for SAF Synthetic Blending Component. See section 7.02 of this notice.

.05 Calculating the applicable supplementary amount

e greenhouse gas emissions reduction percentage must be

rounded down to the nearest whole percent.

The registered producer or importer of the SAF synthetic blending component must

record the lifecycle greenhouse gas emissions reduction percentage on the Certificate

for SAF Synthetic Blending Component. See section 7.02 of this notice.

.05 Calculating the applicable supplementary amount. To calculate the applicable

supplementary amount for purposes of §§ 40B(b) and 6426(k), subtract 50 from the

lifecycle greenhouse gas emissions reduction percentage, then multiply that number by

the applicable rate for the supplementary amount (currently $0.01) ([lifecycle

greenhouse gas emissions reduction percentage – 50] × applicable rate for the

supplementary amount). The applicable supplementary amount under §§ 40B(b) and

6426(k) must be calculated using the same methodology used to determine the lifecycle

greenhouse gas emissions reduction percentage under § 40B(e).

The registered producer or importer of the SAF synthetic blending component must

record the applicable supplementary amount on the Certificate for SAF Synthetic

Blending Component. See section 7.02 of this notice.

.06 Example. A blender used 100,000 gallons of a SAF synthetic blending

component to produce a SAF qualified mixture. The SAF synthetic blending component

was produced via a pathway that has a lifecycle carbon dioxide emission equivalent of

28.9 grams per megajoule of energy. To calculate the amount of the credit, first

calculate the lifecycle greenhouse gas emissions reduction percentage (rounding down

to the nearest whole percent): [(89 gCO2e/MJ – 28.9 gCO2e/MJ)/ 89 gCO2e/MJ] ×

100% = 67.5%, rounded down to 67%.

Because the lifecycle greenhouse gas emissions reduction percentage is at least 50

percent, the SAF synthetic blending component qualifies for the $1.25/gallon credit

amount of the credit, first

calculate the lifecycle greenhouse gas emissions reduction percentage (rounding down

to the nearest whole percent): [(89 gCO2e/MJ – 28.9 gCO2e/MJ)/ 89 gCO2e/MJ] ×

100% = 67.5%, rounded down to 67%.

Because the lifecycle greenhouse gas emissions reduction percentage is at least 50

percent, the SAF synthetic blending component qualifies for the $1.25/gallon credit.

Additionally, the SAF synthetic blending component qualifies for the applicable

supplementary amount, which is calculated by subtracting 50 from the lifecycle

greenhouse gas emissions reduction percentage (67), and then multiplying by the

applicable rate ($0.01): (67 – 50) × $0.01 = $0.17 per gallon.

The SAF credit is calculated as follows: 100,000 gallons × ($1.25 + $0.17) =

$142,000.00.

SECTION 5. REGISTRATION; SUSTAINABLE AVIATION FUEL; BLENDERS OF

SAF SYNTHETIC BLENDING COMPONENTS; PRODUCERS OF SAF CO-

PROCESSED QUALIFIED MIXTURES

.01 Registration.

(1) In general. Section 4101(a)(1) provides that every person producing or

importing sustainable aviation fuel must register with the Secretary at such time, in such

form and manner, and subject to such terms and conditions, as the Secretary may by

regulations prescribe. Section 48.4101-1 provides the registration requirements for fuel

registrants.

Section 40B(f) provides that no SAF credit is allowed with respect to any sustainable

aviation fuel unless the producer or importer of such fuel is registered with the Secretary

under § 4101, and provides such information with respect to such fuel as the Secretary

may require for purposes of carrying out § 40B, including certification (in such form and

manner as the Secretary prescribes) from an unrelated party demonstrating compliance

with— (1) any general requirements, supply chain traceability requirements, and

information transmission requirements established under the CORSIA described in

§ 40B(e)(1), or (2) in the case of any methodology established under § 40B(e)(2),

requirements similar to

B, including certification (in such form and

manner as the Secretary prescribes) from an unrelated party demonstrating compliance

with— (1) any general requirements, supply chain traceability requirements, and

information transmission requirements established under the CORSIA described in

§ 40B(e)(1), or (2) in the case of any methodology established under § 40B(e)(2),

requirements similar to the requirements described in § 40B(f)(2)(A)(i). See also

§ 6426(k)(3).

Until further notice, the IRS will treat the producer or importer of a SAF synthetic

blending component and the United States producer of a SAF co-processed qualified

mixture as the persons required to register under § 4101. The IRS will not register an

importer of a co-processed liquid fuel or an importer of a SAF qualified mixture as an

importer of sustainable aviation fuel due to the requirement that a qualified mixture be

produced in the United States. See § 40B(c)(1).

(2) Procedure for registering. Application for registration is made on Form 637,

Application for Registration (For Certain Excise Tax Activities), under Activity Letter

“SA,” in accordance with the instructions for that form. The IRS is revising Form 637 to

add Activity Letter “SA.” Until the revised Form 637 is released, applicants may use the

current Form 637 by writing in “Activity Letter SA” and providing the following:

(a) The annual volume of the sustainable aviation fuel the applicant produces;

(b) The locations and a description of the applicant’s production facilities;

aviation fuel;

(d) A statement indicating whether the applicant produces sustainable aviation

fuel under an ASTM D7566 Annex or ASTM D1655 Annex A1, and if applicable, the

specific ASTM D7566 Annex under which the SAF synthetic blending component is

produced;

a description of the applicant’s production facilities;

aviation fuel;

(d) A statement indicating whether the applicant produces sustainable aviation

fuel under an ASTM D7566 Annex or ASTM D1655 Annex A1, and if applicable, the

specific ASTM D7566 Annex under which the SAF synthetic blending component is

produced;

(e) A sample Certificate of Analysis (as defined in section 6.04(3) of this notice)

for the type of sustainable aviation fuel the applicant produces, demonstrating

conformance with either an ASTM D7566 Annex or ASTM D1655 Annex A1;

(f) Certification from the International Sustainability and Carbon Certification

(ISCC), Roundtable on Sustainable Biomaterials (RSB), or other unrelated party

demonstrating compliance with— (i) any general requirements, supply chain traceability

requirements, and information transmission requirements established under CORSIA,

which has been adopted by the ICAO with the agreement of the United States, or (ii)

any similar methodology that satisfies the criteria under section 211(o)(1)(H) of the

Clean Air Act (42 U.S.C. 7545(o)(1)(H)), as in effect on August 16, 2022;

(g) Certification in accordance with § 40B(e) that the SAF synthetic blending

component has a lifecycle greenhouse gas emissions reduction percentage of at least

50 percent;

(h) The names and addresses of any person(s) acting for the applicant as an

agent or broker in buying, selling, or transporting any sustainable aviation fuel;

(i) The business entities to which the applicant sells sustainable aviation fuel;

(j) The business entities from or with which the applicant buys, trades, transfers,

or exchanges any sustainable aviation fuel; and

at least

50 percent;

(h) The names and addresses of any person(s) acting for the applicant as an

agent or broker in buying, selling, or transporting any sustainable aviation fuel;

(i) The business entities to which the applicant sells sustainable aviation fuel;

(j) The business entities from or with which the applicant buys, trades, transfers,

or exchanges any sustainable aviation fuel; and

(k) The annual volume of the sustainable aviation fuel the applicant buys, sells,

trades, transfers, or exchanges.

(3) Requirements. The IRS will register an applicant with Activity Letter “SA” only if

the IRS— (A) concludes that the applicant is engaged as a producer or importer of a

SAF synthetic blending component or the producer of a SAF co-processed qualified

mixture, or is likely to become so engaged within a reasonable time after being

registered under § 4101; and (B) is satisfied with the filing, deposit, payment, reporting,

and claim history for all federal taxes of the applicant and any related person (as

defined in § 48.4101-1(b)(5)).

The IRS will not consider an applicant likely to become engaged in the business of

producing or importing a SAF synthetic blending component or producing a SAF co-

processed qualified mixture unless the producer or importer (as applicable) can provide

certification from an unrelated party demonstrating compliance with § 40B(d)(1)(D) and

(f)(2)(A).

(4) Certification demonstrating compliance with § 40B(f)(2)(A); safe harbor. The

IRS will consider a producer or importer of a SAF synthetic blending component or the

producer of a SAF co-processed qualified mixture to meet the requirements of

§ 40B(f)(2)(A), relating to the sustainability requirements of CORSIA, if the producer or

importer (as applicable) has a valid, relevant certificate from ISCC, RSB, or other ICAO-

approved sustainability certification scheme

or. The

IRS will consider a producer or importer of a SAF synthetic blending component or the

producer of a SAF co-processed qualified mixture to meet the requirements of

§ 40B(f)(2)(A), relating to the sustainability requirements of CORSIA, if the producer or

importer (as applicable) has a valid, relevant certificate from ISCC, RSB, or other ICAO-

approved sustainability certification scheme. At the time of publication of this notice, the

most recently published version (First Edition, November 2020) of CORSIA Approved

Sustainability Certification Schemes, which lists ICAO-approved sustainability

certification schemes, is available at https://www.icao.int/environmental-

protection/CORSIA/Pages/CORSIA-Eligible-Fuels.aspx.

.02 Blenders of SAF synthetic blending components and ASTM D1655 kerosene

used to produce SAF qualified mixtures. Section 4101 and § 48.4101-1 require any

person who produces taxable fuel to be registered. Section 4083(a)(1) defines taxable

fuel to include kerosene, which for jet fuel means ASTM D1655 kerosene (and ASTM

D7566 and D1655 compliant SAF). The person who blends the SAF synthetic blending

component with ASTM D1655 kerosene to produce a SAF qualified mixture produces

ASTM D1655 compliant SAF, which meets the specifications of ASTM D1655 and is a

taxable fuel.

As a result, the blender is required to be registered either under Activity Letter “S” if

the blending occurs within the bulk transfer/terminal system (that is, above the rack) or

under Activity Letter “M” if the blending occurs outside the bulk transfer/terminal system

(that is, below the rack).

Pursuant to § 48.4101-1(h)(1)(v), each registrant must notify the IRS of any change

in the information the registrant submitted in connection with its application for

registration within 10 days after the change occurs

lk transfer/terminal system (that is, above the rack) or

under Activity Letter “M” if the blending occurs outside the bulk transfer/terminal system

(that is, below the rack).

Pursuant to § 48.4101-1(h)(1)(v), each registrant must notify the IRS of any change

in the information the registrant submitted in connection with its application for

registration within 10 days after the change occurs. A previously-registered “S”

registrant or a previously-registered “M” registrant that begins producing SAF qualified

mixtures must inform the IRS of this change by contacting the IRS office with which the

registrant is registered.

.03 Producers of SAF co-processed qualified mixtures and co-processed liquid fuel.

As stated above, § 4101 and § 48.4101-1 require any person who produces taxable fuel

to be registered. The person who produces a SAF co-processed qualified mixture is

also producing kerosene, a taxable fuel under § 4083(a)(1). As a result, the producer is

required to be registered under Activity Letter “S” in addition to Activity Letter “SA.”

A person who produces co-processed liquid fuel (regardless of whether it qualifies

for the SAF credit or as a SAF co-processed liquid fuel) is also producing kerosene. As

a result, the producer is required to be registered under Activity Letter “S.”

In addition, a previously-registered “S” registrant that begins producing co-processed

liquid fuel or a SAF co-processed qualified mixture must inform the IRS of this change

by contacting the IRS office with which the registrant is registered.

SECTION 6. CLAIMS; MAKING A CLAIM; CLAIM REQUIREMENTS

.01 In general. In order to qualify for a SAF credit, the claimant must produce, then

use or sell for use, a qualified mixture that meets all requirements set forth in this notice.

The producer or importer of the sustainable aviation fuel must also be registered under

§ 4101. See also §§ 40B(f)(1), 6426(k)(3)

gistrant is registered.

SECTION 6. CLAIMS; MAKING A CLAIM; CLAIM REQUIREMENTS

.01 In general. In order to qualify for a SAF credit, the claimant must produce, then

use or sell for use, a qualified mixture that meets all requirements set forth in this notice.

The producer or importer of the sustainable aviation fuel must also be registered under

§ 4101. See also §§ 40B(f)(1), 6426(k)(3). See section 6.04 of this notice for the claim

requirements applicable to a SAF qualified mixture produced under ASTM D7566.

.02 Claimant. The person eligible to claim the SAF credit is the person who

produces the qualified mixture, assuming all other statutory requirements are met. With

respect to a SAF qualified mixture, the person who produces the SAF qualified mixture

does not have to be the same person that produced or imported the SAF synthetic

blending component. With respect to a SAF co-processed qualified mixture, the person

who produces the SAF co-processed qualified mixture is the proper claimant.

.03 Making a claim.

(1) Excise tax claims under §§ 6426(k) and 6427(e)(1); refundable income tax

claims under § 34(a)(3).

(a) In general. First, the claimant must claim an excise tax SAF credit under

§ 6426(k), along with any credit under § 6426(c) or (e) against its § 4081 excise tax

liability. To the extent that the SAF credit under § 6426(k) (along with the sum of any

credit under § 6426(c) or (e)) exceeds the claimant’s § 4081 liability for a particular

quarter, the claimant may claim a payment under § 6427(e)(1) or a refundable income

tax credit under § 34(a)(3). A claimant may only make one claim for each gallon of

sustainable aviation fuel used in a qualified mixture. A claimant may not make a claim

under § 6427(e)(1) or § 34(a)(3) for an amount that will be claimed or is required to be

claimed under § 6426(k).

ability for a particular

quarter, the claimant may claim a payment under § 6427(e)(1) or a refundable income

tax credit under § 34(a)(3). A claimant may only make one claim for each gallon of

sustainable aviation fuel used in a qualified mixture. A claimant may not make a claim

under § 6427(e)(1) or § 34(a)(3) for an amount that will be claimed or is required to be

claimed under § 6426(k).

(b) Procedure for making a claim. A claimant claiming an excise tax SAF credit

under § 6426(k) must first make the claim on a Form 720, Quarterly Federal Excise Tax

Return, if reporting excise tax liability, in accordance with the instructions for that form.

For federal income tax purposes, a claimant's expense for the § 4081 excise tax,

whether taken as a deduction or as a component of cost of goods sold, is reduced by

the amount of the excise tax credit under § 6426(k). See generally Exxon Mobil Corp.

v. United States, 43 F.4th 424 (5th Cir. 2022).

The payment under § 6427(e)(1) is claimed on Form 720 or Form 8849, Schedule 3,

Certain Fuel Mixtures and the Alternative Fuel Credit, in accordance with the

instructions for those forms. A person may not make a claim on a Form 8849, Schedule

3 for an amount that is claimed (or will be claimed) on Form 720, Form 720X, Amended

Quarterly Federal Excise Tax Return, or Form 4136, Credit for Federal Tax Paid on

Fuels.

The § 34(a)(3) refundable income tax credit is claimed on Form 4136 in accordance

with the instructions for that form, for amounts otherwise allowable under § 6427(e)(1),

but that were not claimed on Form 720 or Form 8849, Schedule 3.

Although the SAF credit applies to fuel sold or used after December 31, 2022, a

claimant will be ineligible to make a claim immediately after the credit goes into effect

due to the registration requirements imposed by §§ 40B and 6426(k)

ance

with the instructions for that form, for amounts otherwise allowable under § 6427(e)(1),

but that were not claimed on Form 720 or Form 8849, Schedule 3.

Although the SAF credit applies to fuel sold or used after December 31, 2022, a

claimant will be ineligible to make a claim immediately after the credit goes into effect

due to the registration requirements imposed by §§ 40B and 6426(k). In general, a

claimant will be able to file an amended return (Form 720X) to claim a credit under

§ 6426(k) with respect to qualified mixtures produced beginning on January 1, 2023,

once the appropriate persons are registered and the other requirements of this notice

are met. Similarly, a claimant will be able to use § 34(a)(3) to claim a refundable

income tax credit, which it would otherwise be eligible to claim as a payment under

§ 6427(e)(1).

(2) Nonrefundable income tax credit. The § 40B credit is a § 38 general business

credit. A claimant may make this claim on Form 8864, Biodiesel, Renewable Diesel,

and Sustainable Aviation Fuels Credit, in accordance with the instructions for that form.

Section 87 provides that gross income includes the SAF credit determined with

respect to the taxpayer for the taxable year under § 40B(a). Therefore, a claimant must

include the amount of the § 40B credit in its gross income.

The amount of the credit determined under § 40B with respect to any sustainable

aviation fuel must be properly reduced to take into account any benefit provided with

respect to such sustainable aviation fuel solely by reason of the application of § 6426(k)

or 6427(e)(1). See § 40B(g). In addition, for purposes of § 40A (biodiesel and

renewable diesel used as fuel), the term “biodiesel” shall not include any liquid with

respect to which a credit may be determined under § 40 or 40B

uel must be properly reduced to take into account any benefit provided with

respect to such sustainable aviation fuel solely by reason of the application of § 6426(k)

or 6427(e)(1). See § 40B(g). In addition, for purposes of § 40A (biodiesel and

renewable diesel used as fuel), the term “biodiesel” shall not include any liquid with

respect to which a credit may be determined under § 40 or 40B.

A claimant will be ineligible to make a claim immediately after the credit goes into

effect due to the registration requirements; however, a claimant generally will be able to

file a Form 8864 with an amended income tax return to claim a credit under § 40B once

the appropriate persons are registered and the other requirements of this notice are

met.

.04 Claim requirements.

(1) Applicability. The claim requirements under section 6.04 of this notice apply

only to claims made with respect to a SAF qualified mixture produced under ASTM

D7566.

(2) Certificate for SAF Synthetic Blending Component. Each claim for a credit or

payment under § 34(a)(3), 40B, 6426(k), or 6427(e)(1) with respect to a SAF qualified

mixture must contain an original Certificate for SAF Synthetic Blending Component

described in section 7.02 of this notice and, if applicable, the Statement(s) of SAF

Synthetic Blending Component Reseller described in section 7.03 of this notice.

However, in the case of a certificate and statement that support a claim made on more

than one claim form, the certificate and statement are to be included with the first claim

and the claimant is to provide information related to the certificate on any subsequent

claim in accordance with the instructions applicable to the claim form.

ponent Reseller described in section 7.03 of this notice.

However, in the case of a certificate and statement that support a claim made on more

than one claim form, the certificate and statement are to be included with the first claim

and the claimant is to provide information related to the certificate on any subsequent

claim in accordance with the instructions applicable to the claim form.

(3) Declaration for SAF Qualified Mixture. Each claim for a credit or payment

under § 34(a)(3), 40B, 6426(k), or 6427(e)(1) with respect to a SAF qualified mixture

must contain a Declaration for SAF Qualified Mixture. The declaration consists of a

statement that is signed under penalties of perjury by a person with authority to bind the

claimant, is substantially in the same form as the model declaration in Appendix A of

this notice, and contains all the information necessary to complete such declaration.

The declaration must contain the Certificate of Analysis (COA) reference number for

the COA associated with the SAF qualified mixture, as well as the COA reference

numbers for the SAF synthetic blending component and the D1655 kerosene that the

claimant blended to produce the SAF qualified mixture. A COA is a document from an

unrelated party used to verify the type and quality of fuel used as jet fuel. Separate

COAs are generated for each synthetic blending component, for the kerosene used to

mix with the synthetic blending component, and for the SAF qualified mixture. The COA

reference number for the SAF synthetic blending component must match the COA

reference number for the SAF synthetic blending component on the Certificate for SAF

Synthetic Blending Component.

SECTION 7. CERTIFICATES AND STATEMENTS

.01 Applicability. This section describes the certificate and reseller statement

applicable only to SAF synthetic blending components.

.02 Certificate for SAF Synthetic Blending Component

nthetic blending component must match the COA

reference number for the SAF synthetic blending component on the Certificate for SAF

Synthetic Blending Component.

SECTION 7. CERTIFICATES AND STATEMENTS

.01 Applicability. This section describes the certificate and reseller statement

applicable only to SAF synthetic blending components.

.02 Certificate for SAF Synthetic Blending Component. The Certificate for SAF

Synthetic Blending Component required by section 6.04(2) of this notice consists of (i) a

statement that is signed under penalties of perjury by a person with authority to bind the

producer or importer of a SAF synthetic blending component, (ii) is substantially in the

same form as the model certificate in Appendix B of this notice, and (iii) contains all the

information necessary to complete the certificate. The certificate identification number

is determined by the producer or importer and must be unique to each certificate.

A producer or importer may, with respect to a particular sale of a SAF synthetic

blending component, provide multiple separate certificates, each applicable to a portion

of the total volume of the SAF synthetic blending component sold. Thus, for example, a

producer or importer that sells 5,000 gallons of a SAF synthetic blending component

may provide its buyer with five certificates for 1,000 gallons each. The multiple

certificates may be provided to the buyer at or after the time of sale or to a reseller in

the circumstances described in section 7.03(1) of this notice.

.03 Statement of SAF Synthetic Blending Component Reseller.

or example, a

producer or importer that sells 5,000 gallons of a SAF synthetic blending component

may provide its buyer with five certificates for 1,000 gallons each. The multiple

certificates may be provided to the buyer at or after the time of sale or to a reseller in

the circumstances described in section 7.03(1) of this notice.

.03 Statement of SAF Synthetic Blending Component Reseller.

(1) In general. A person that receives a Certificate for SAF Synthetic Blending

Component, and subsequently sells the SAF synthetic blending component without

producing a SAF qualified mixture, must provide to its buyer the certificate, and a

statement that is substantially in the same form as the model statement in Appendix C

of this notice. The statement must contain all of the information necessary to complete

the model statement in Appendix C and be attached to the original Certificate for SAF

Synthetic Blending Component.

A reseller cannot make multiple copies of a Certificate for SAF Synthetic Blending

Component in order to use it for multiple buyers. If a single certificate applies to a SAF

synthetic blending component that a reseller expects to sell to multiple buyers, then the

reseller should return the certificate (together with any statements provided by

intervening resellers) to the producer or importer. The producer or importer may reissue

multiple Certificates for SAF Synthetic Blending Component to the reseller that reflect

the appropriate volumes. The reissued certificates must include the certificate

identification number from the certificate that was returned.

er should return the certificate (together with any statements provided by

intervening resellers) to the producer or importer. The producer or importer may reissue

multiple Certificates for SAF Synthetic Blending Component to the reseller that reflect

the appropriate volumes. The reissued certificates must include the certificate

identification number from the certificate that was returned.

(2) Withdrawal of the right to provide a statement. The IRS may withdraw the right

of a buyer of a SAF synthetic blending component to provide the buyer’s Certificate for

SAF Synthetic Blending Component and Statement of SAF Synthetic Blending

Component Reseller under this section 7 if the IRS cannot verify the accuracy of the

buyer's statements.

SECTION 8. REQUEST FOR COMMENTS

.01 General comments. The Treasury Department and the IRS request comments

on whether any issues related to the SAF credit provided in this notice require

clarification or additional guidance. The IRS anticipates issuing additional guidance on

the SAF credit.

.02 Comments on specific questions. The Treasury Department and IRS invite

specific comments in response to the following questions:

(1) Section 40B(e)(2) provides that “any similar methodology, which satisfies the

criteria under § 211(o)(1)(H) of the Clean Air Act (42 U.S.C. 7545(o)(1)(H)), as in effect

on the date of enactment of this section” may be used to determine the reduction in

lifecycle greenhouse gas emissions. What methods exist that could qualify as a “similar

methodology”? Do the lifecycle emissions values that have been developed by the

Environmental Protection Agency for the Renewable Fuel Standard qualify as a “similar

methodology”? Does the Greenhouse Gases, Regulated Emissions, and Energy Use in

Transportation (GREET) model developed by the Argonne National Laboratory qualify

as a “similar methodology”?

ist that could qualify as a “similar

methodology”? Do the lifecycle emissions values that have been developed by the

Environmental Protection Agency for the Renewable Fuel Standard qualify as a “similar

methodology”? Does the Greenhouse Gases, Regulated Emissions, and Energy Use in

Transportation (GREET) model developed by the Argonne National Laboratory qualify

as a “similar methodology”?

(2) Section 40B(f)(2)(A)(ii) (concerning general requirements, supply chain

traceability requirements, and information requirements established under CORSIA)

provides that in the case of any methodology established under § 40B(e)(2) (concerning

any similar methodology, which satisfies the criteria § 211(o)(1)(H) of the Clean Air Act

(42 U.S.C. 7545(o)(1)(H))), requirements similar to the requirements described in

section 40B(e)(1) apply. What CORSIA requirements are needed to ensure supply

chain traceability of information related to lifecycle greenhouse gas emissions and what

unrelated party or parties are qualified to demonstrate compliance?

(3) Are any SAF co-processed qualified mixtures currently being produced in the

United States? Are any SAF FT hydrocarbons currently being produced in the United

States?

(4) With respect to the registration requirements under § 4101, this notice treats

the person who produces a SAF co-processed qualified mixture as a sustainable

aviation fuel producer. Is it more appropriate to treat the producer of the SAF FT

hydrocarbons as the sustainable aviation fuel producer?

(5) What types of verification exist to show what portion of a SAF co-processed

qualified mixture is attributable to FT hydrocarbons versus petroleum? Are carbon

dating or mass balancing appropriate types of verification?

ed mixture as a sustainable

aviation fuel producer. Is it more appropriate to treat the producer of the SAF FT

hydrocarbons as the sustainable aviation fuel producer?

(5) What types of verification exist to show what portion of a SAF co-processed

qualified mixture is attributable to FT hydrocarbons versus petroleum? Are carbon

dating or mass balancing appropriate types of verification?

(6) What entities are capable of providing the certifications required by

§ 40B(d)(1)(D) (relating to a lifecycle greenhouse gas emissions reduction percentage

of at least 50 percent) and (f)(2)(A) (concerning general requirements, supply chain

traceability requirements, and information requirements established under CORSIA or a

similar methodology under the Clean Air Act) with respect to SAF co-processed

qualified mixtures?

(7) Section 40B(c)(4) requires that the transfer of the qualified mixture into an

aircraft occur in the United States. What types of verification exist to show that the

qualified mixture is transferred to the fuel tank of an aircraft in the United States?

SECTION 9. SUBMISSION OF COMMENTS

.01 Written comments should be submitted by February 17, 2023. The subject line

for the comments should include a reference to Notice 2023-06. Comments may be

submitted in one of two ways:

(1) electronically via the Federal eRulemaking Portal at http://www.regulations.gov

(type IRS-2022-0036 in the search field on the regulations.gov homepage to find this

notice and submit comments); or

.01 Written comments should be submitted by February 17, 2023. The subject line

for the comments should include a reference to Notice 2023-06. Comments may be

submitted in one of two ways:

(1) electronically via the Federal eRulemaking Portal at http://www.regulations.gov

(type IRS-2022-0036 in the search field on the regulations.gov homepage to find this

notice and submit comments); or

(2) alternatively, by mail to: Internal Revenue Service, CC:PA:LPD:PR (Notice

2023-06), Room 5203, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044.

.02 All commenters are strongly encouraged to submit comments electronically. The

Treasury Department and the IRS will publish for public availability any comment

submitted electronically, or on paper, to its public docket on www.regulations.gov.

SECTION 10. PAPERWORK REDUCTION ACT

Sections 5 and 6.04 of this notice set forth collections of information to be provided

to the IRS with Form 637, and to determine whether a claimant qualifies for a SAF

credit. The collections of information will be reflected in the submission to the Office of

Management and Budget (OMB) for review in accordance with the Paperwork

Reduction Act (44 U.S.C. 3507(c)) that is associated with Form 637 (OMB control

number 1545-1835). This submission will be updated in the ordinary course. An

agency may not conduct or sponsor, and a person is not required to respond to, a

collection of information unless the collection of information displays a valid OMB

control number.

SECTION 11. DRAFTING INFORMATION

The principal author of this notice is Elisabeth Shellan of the Office of Associate

Chief Counsel (Passthroughs & Special Industries). For further information regarding

this notice, call the energy security guidance contact number at (202) 317-5254 (not a

toll-free call)

of information unless the collection of information displays a valid OMB

control number.

SECTION 11. DRAFTING INFORMATION

The principal author of this notice is Elisabeth Shellan of the Office of Associate

Chief Counsel (Passthroughs & Special Industries). For further information regarding

this notice, call the energy security guidance contact number at (202) 317-5254 (not a

toll-free call).

Appendix A – Model Declaration for SAF Qualified Mixture

DECLARATION FOR SAF QUALIFIED MIXTURE

(To support a claim related to sustainable aviation fuel (SAF)

under the Internal Revenue Code)

The undersigned blender of a SAF qualified mixture (“Claimant”) hereby declares the

following:

1. _____________________________________________________________

_____________________________________________________________

Claimant’s name, address, and employer identification number (EIN)

2. Claimant declares that the SAF qualified mixture to which this declaration relates:

(A) Is a mixture of SAF synthetic blending component and kerosene;

(1) The SAF synthetic blending component used to create the mixture

meets the requirements of an ASTM D7566 Annex (the certificate of

analysis reference number demonstrating conformance with such

standard is ____________________, dated __________ and the

Certificate for SAF Synthetic Blending Component, for the SAF synthetic

blending component used to create the mixture, certificate identification

number is ____________________, dated __________);

(2) The kerosene used to create the mixture meets the requirements of

ASTM D1655 (the certificate of analysis reference number demonstrating

conformance with such standard is ____________________, dated

__________);

Synthetic Blending Component, for the SAF synthetic

blending component used to create the mixture, certificate identification

number is ____________________, dated __________);

(2) The kerosene used to create the mixture meets the requirements of

ASTM D1655 (the certificate of analysis reference number demonstrating

conformance with such standard is ____________________, dated

__________);

(3) The SAF qualified mixture meets the requirements of ASTM D7566

(the certificate of analysis reference number demonstrating conformance

with such standard is ____________________, dated __________);

(B) The mixture was produced by Claimant in the United States;

(D) Such sale or use was in the ordinary course of the trade or business of the

Claimant;

(E) The transfer of such mixture to the fuel tank of such aircraft occurred in the

United States.

3. Claimant is registered under activity letter M or S or both with registration

number(s) ____________________. Claimant's registration has not been

suspended or revoked by the Internal Revenue Service.

Under penalties of perjury, I, ___________________________________________

declare that I have examined this declaration, and to the best of my knowledge and

belief, it is true, correct, and complete.

___________________________________________

Printed or typed name of person signing this declaration

___________________________________________

Title of person signing

___________________________________________

Signature and date signed

Appendix B – Model Certificate for SAF Synthetic Blending Component

CERTIFICATE FOR SAF SYNTHETIC BLENDING COMPONENT

Certificate Identification Number: ____________________

(To support a claim related to sustainable aviation fuel (SAF)

under the Internal Revenue Code)

The undersigned producer or importer of a SAF synthetic blending component

(“Producer”) hereby certifies the following under penalties of perjury:

e for SAF Synthetic Blending Component

CERTIFICATE FOR SAF SYNTHETIC BLENDING COMPONENT

Certificate Identification Number: ____________________

(To support a claim related to sustainable aviation fuel (SAF)

under the Internal Revenue Code)

The undersigned producer or importer of a SAF synthetic blending component

(“Producer”) hereby certifies the following under penalties of perjury:

1. _____________________________________________________________

_____________________________________________________________

Producer's name, address, and employer identification number (EIN)

2. _____________________________________________________________

_____________________________________________________________

Name, address, and EIN of person buying the SAF synthetic blending

component from Producer.

3. _____________________________________________________________

_____________________________________________________________

Name and address of the unrelated party certifying compliance with the

general requirements, supply chain traceability requirements, and information

transmission requirements established under the Carbon Offsetting and

Reduction Scheme for International Aviation (CORSIA) or similar

requirements for methodologies established under section 211(o)(1)(H) of the

Clean Air Act (42 U.S.C. 7545(o)(1)(H)).

4. _____________________________________________________________

Date and location of sale to buyer

5. This certificate applies to __________ gallons of a SAF synthetic blending

component.

ffsetting and

Reduction Scheme for International Aviation (CORSIA) or similar

requirements for methodologies established under section 211(o)(1)(H) of the

Clean Air Act (42 U.S.C. 7545(o)(1)(H)).

4. _____________________________________________________________

Date and location of sale to buyer

5. This certificate applies to __________ gallons of a SAF synthetic blending

component.

6. Producer certifies that the SAF synthetic blending component to which this

certificate relates:

(A) Meets the requirements of an ASTM D7566 Annex (the certificate of

analysis reference number demonstrating conformance with such

standard is ____________________, dated __________ );

(B) Is not derived from co-processing an applicable material

(monoglycerides, diglycerides, triglycerides, free fatty acids, or fatty

acid esters) or materials derived from an applicable material with a

feedstock that is not biomass (as defined in section 45K(c)(3));

(D) Has been certified in accordance with section 40B(e) as having a

lifecycle greenhouse gas emissions reduction percentage of at least 50

percent.

7. The lifecycle greenhouse gas emissions reduction percentage of the SAF

synthetic blending component to which this certificate relates is __________.

(This percent must be rounded down to the nearest whole percent.)

(Check one)

______ The lifecycle greenhouse gas emissions reduction percentage is

calculated from the “Default Life Cycle Emissions Values for CORSIA Eligible

Fuels” in the most recently published version by the International Civil

Aviation Organization (ICAO).

______ The lifecycle greenhouse gas emissions reduction percentage is

calculated from the “CORSIA Methodology for Calculating Actual Life Cycle

Emission Values” in the most recently published version by the ICAO

calculated from the “Default Life Cycle Emissions Values for CORSIA Eligible

Fuels” in the most recently published version by the International Civil

Aviation Organization (ICAO).

______ The lifecycle greenhouse gas emissions reduction percentage is

calculated from the “CORSIA Methodology for Calculating Actual Life Cycle

Emission Values” in the most recently published version by the ICAO.

______ The lifecycle greenhouse gas emissions reduction percentage is

calculated according to a methodology that satisfies the criteria of section

211(o)(1)(H) of the Clean Air Act (42 U.S.C. 7545(o)(1)(H)). Describe

method: ______________________________________________________

______________________________________________________________

8. The applicable supplementary amount with respect to the SAF synthetic

blending component to which this certificate relates is __________. In no

event can the applicable supplementary amount exceed $0.50.

9. This certificate applies to the following sale:

______ Invoice or delivery ticket number

______ Total number of gallons of the SAF synthetic blending component sold

under that invoice or delivery ticket number (including SAF synthetic blending

component not covered by this certificate)

______ Total number of certificates issued for that invoice or delivery ticket

number

10. _____________________________________________________________

_____________________________________________________________

Name, address, and EIN of reseller to whom certificate is issued (only in the

case of certificates reissued to a reseller after the return of the original

certificate)

11. _________ Original Certificate Identification Number (only in the case of

certificates reissued to a reseller after return of the original certificate)

____

_____________________________________________________________

Name, address, and EIN of reseller to whom certificate is issued (only in the

case of certificates reissued to a reseller after the return of the original

certificate)

11. _________ Original Certificate Identification Number (only in the case of

certificates reissued to a reseller after return of the original certificate)

12. Producer is registered as a sustainable aviation fuel (activity letter SA)

producer or importer with registration number __________. Producer's

registration has not been suspended or revoked by the Internal Revenue

Service.

Producer understands that the fraudulent use of this certificate may subject Producer

and all parties making any fraudulent use of this certificate to a fine or imprisonment, or

both, together with the costs of prosecution.

___________________________________________

Printed or typed name of person signing this certificate

___________________________________________

Title of person signing

___________________________________________

Signature and date signed

Note: In the case of a claimant that is also the producer or importer of the SAF

synthetic blending component, the information required on lines 2, 4, and 10 of the

model certificate is not applicable and those lines do not need to be completed.

Appendix C – Model Statement of SAF Synthetic Blending Component Reseller

STATEMENT OF SAF SYNTHETIC BLENDING COMPONENT RESELLER

(To support a claim related to sustainable aviation fuel (SAF)

under the Internal Revenue Code)

The undersigned SAF synthetic blending component reseller (“Reseller”) hereby

certifies the following under penalties of perjury:

1. _____________________________________________________________

_____________________________________________________________

Reseller's name, address, and employer identification number (EIN)

de)

The undersigned SAF synthetic blending component reseller (“Reseller”) hereby

certifies the following under penalties of perjury:

1. _____________________________________________________________

_____________________________________________________________

Reseller's name, address, and employer identification number (EIN)

2. _____________________________________________________________

_____________________________________________________________

Name, address, and EIN of Reseller’s buyer

3. _____________________________________________________________

Date and location of sale to buyer

4. __________________________________Volume of the SAF synthetic

blending component sold

5. __________________________________Certificate Identification Number

on the Certificate for SAF Synthetic Blending Component

Reseller has bought the SAF synthetic blending component described in the

accompanying Certificate for SAF Synthetic Blending Component and reseller has no

reason to believe that any information in the certificate is false.

Reseller has not been notified by the Internal Revenue Service that its right to provide a

certificate and a statement has been withdrawn.

Reseller understands that the fraudulent use of this statement may subject Reseller and

all parties making any fraudulent use of this statement to a fine or imprisonment, or

both, together with the costs of prosecution.

___________________________________________

Printed or typed name of person signing this certificate

___________________________________________

Title of person signing

___________________________________________

Signature and date signed

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.