When can I claim the Fuel Tax Credit for sustainable aviation fuel?

The person that produced and sold or used a qualified mixture (a mixture of SAF and kerosene) is the only person eligible to make this claim. The credit is based on the gallons of SAF in the qualified mixture.

Any SAF mixture credit must first be claimed on Schedule C to reduce your taxable fuel liability reported on Form 720. Any excess credit must be claimed on Form 720, Schedule C; Schedule 3 (Form 8849); Form 4136; or Form 8864. See item 4 below for more information. Only one credit may be taken for each amount of SAF. If a person claimed (or will claim) an amount of SAF on Form 720, Form 8849, or Form 8864 for a credit or payment, then a claim can't be made on Form 4136 for that same amount of SAF.

The qualified mixture must be used (or sold, in the ordinary course of a trade or business, for use) in an aircraft. The SAF credit can't be claimed for qualified mixtures produced outside of the United States or if the transfer of such mixture to the fuel tank of an aircraft occurs outside of the United States. Requirements 1 and 2 must be met only if the credit exceeds the amount of taxable fuel liability reported. Requirements 3 and 4 must be met for all claims.

1. The claim must be for a qualified mixture sold or used during a period that is at least 1 week.
2. The amount of the claim must be at least $200. To meet this minimum, amounts from Line 10 and Line 12 or 12d may be combined.
3. The SAF used to produce the qualified mixture is the portion of liquid fuel that isn't kerosene that (i) either (A) meets the specifications of one of the ASTM D7566 Annexes, or (B) meets the specifications of ASTM D1655, Annex A1, (ii) isn't derived from coprocessing an applicable material (or materials derived from an applicable material) with a feedstock which isn't biomass, (iii) isn't derived from palm fatty acid distillates or petroleum, and (iv) has been certified in accordance with I.R.C. section 40B(e) as having a lifecycle greenhouse gas emissions reduction percentage of at least 50%. Applicable material means monoglycerides, diglycerides, and triglycerides, free fatty acids, and fatty acid esters. Lifecycle greenhouse gas emissions reduction percentage means the percentage reduction in lifecycle greenhouse gas emissions achieved by such fuel as compared with petroleum-based jet fuel, as defined in accordance with the most recent Carbon Offsetting and Reduction Scheme for International Aviation which has been adopted by the International Civil Aviation Organization with the agreement of the United States, or any similar methodology which satisfies the criteria under section 211(o)(1)(H) of the Clean Air Act.
4. For qualified mixtures produced with a SAF synthetic blending component (SAF that meets the qualifications of an ASTM D7566 Annexes), the Certificate for SAF Synthetic Blending Component, Certificate for SAF Synthetic Blending Component Using 40BSAF-GREET 2024 Model (if applicable), or Certificate for SAF Synthetic Blending Component Using 40BSAF-GREET 2024 Model and USDA CSA Pilot Program for Corn and Soy (if applicable), Statement of SAF Synthetic Blending Component Reseller (if applicable), and Declaration for SAF Qualified Mixture must be attached to the first claim filed that is supported by the certificate or statement. If the certificate and statement aren't attached to Form 4136 because they're attached to a previously filed claim on a Form 720, Schedule C; a Schedule 3 (Form 8849); or a Form 8864, attach a separate statement with the following information.
• Certificate identification number.
• Total gallons of SAF synthetic blending component on the certificate.
• Total gallons claimed on Schedule 3 (Form 8849).
• Total gallons claimed on Form 720, Schedule C, Line 12 or 12d.
• Total gallons claimed on Form 8864.