Notice 2024-37: Additional guidance and safe harbors for sustainable aviation fuel credit

Type
:
Opportunity
Tax Area
:
Corporate Income Tax
Status
:
Guidance
Qualification
:
Various
Implemented date
:
NA
Country
:
United States
Date added
30 Apr
,
2024
Docxster’s Summary

The IRS has issued Notice 2024-37, which provides safe harbors for the sustainable aviation fuel credit. The safe harbors are intended to provide certainty and flexibility for taxpayers claiming the credit, which is designed to incentivize the production and use of sustainable aviation fuel. Taxpayers can rely on these safe harbors for taxable years beginning after December 31, 2021.

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The IRS today released Notice 2024-37 providing additional guidance and safe harbors for the new sustainable aviation fuel (SAF) credits under sections 40B and 6426(k), created by H.R. 5376 (commonly called the “Inflation Reduction Act of 2022” (IRA)).

The Treasury Department and IRS issued prior guidance regarding SAF credits in Notice 2023-6. Read TaxNewsFlash

Notice 2024-37 provides additional safe harbors for:

  • The 40BSAF-GREET 2024 model as a qualifying method to calculate the emissions reduction percentage and for the corresponding unrelated party certification to qualify for SAF credits
  • Use of the United States Department of Agriculture (USDA) Climate Smart Agriculture Pilot Program to further reduce the lifecycle greenhouse gas emissions reduction percentage calculated using 40BSAF-GREET 2024 for domestic soybean and domestic corn feedstocks and for certifying the related requirements

Read the related IRS release—IR-2024-127 (April 30, 2024)

Read a related Treasury release

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Source :
KPMG
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