Sustainable aviation fuel is redefined and its own credit ends
What the document says“the term `sustainable aviation fuel' means liquid fuel, the portion of which is not kerosene, which is sold for use in an aircraft and which--”
The section rewrites section 45Z(a)(3) of the Internal Revenue Code of 1986 so that sustainable aviation fuel means liquid fuel, the part of which is not kerosene, sold for use in an aircraft that meets ASTM International Standard D7566 or the Fischer Tropsch provisions of ASTM International Standard D1655, Annex A1, and is not derived from palm fatty acid distillates or petroleum. It also strikes the special rates for that fuel, bars the section 6426(k) credit for a gallon on which the section 45Z credit is allowable, and ends the section 6426(k) credit for any sale or use after September 30, 2025.
What the document actually says“the term `sustainable aviation fuel' means liquid fuel, the portion of which is not kerosene, which is sold for use in an aircraft and which--”
The term covers liquid fuel sold for use in a plane. The part that is kerosene does not count. The tests that follow narrow it further.
The fuel must meet a named industry standard. It may not come from palm fatty acids or oil. A separate credit for it ends after September 30, 2025.
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