(d) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated such sums as may be 
necessary to carry out this section. 
SEC. 9. SUSTAINABLE AVIATION FUEL CREDIT. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after section 40A the fol-
lowing new section: 
‘‘SEC. 40B. SUSTAINABLE AVIATION FUEL CREDIT. 
‘‘(a) IN GENERAL.—For purposes of section 38, the 
sustainable aviation fuel credit for the taxable year is, with 
respect to each gallon of neat sustainable aviation fuel 
blending component used by the taxpayer in the produc-
tion of a qualified mixture— 
‘‘(1) $1.50, plus 
‘‘(2) 
the 
applicable 
supplementary 
credit 
amount. 
‘‘(b) 
APPLICABLE
SUPPLEMENTARY
CREDIT 
AMOUNT.— 
‘‘(1) IN GENERAL.—For purposes of subsection 
(a), the applicable supplementary credit amount is 
$0.25, reduced (but not below zero) by the emissions 
reduction certification amount. 
‘‘(2) EMISSIONS
REDUCTION
CERTIFICATION 
AMOUNT.—For purposes of paragraph (1), the emis-
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sions reduction certification amount is $0.01 for 
every 2 percentage points below 100 percent for 
which the neat sustainable aviation fuel blending 
component is certified to reduce emissions in com-
parison with conventional fuel under section 10 of 
the Sustainable Aviation Fuel Act. 
‘‘(c) NEAT SUSTAINABLE AVIATION FUEL BLENDING 
COMPONENT.—For purposes of this section, the term 
‘neat sustainable aviation fuel blending component’ means 
unblended liquid fuel— 
‘‘(1) that consists of synthesized hydrocarbons, 
and 
‘‘(2) that— 
‘‘(A) meets the requirements of a Depart-
ment of Defense specification for military jet 
fuel or an American Society of Testing and Ma-
terials specification for aviation turbine fuel, 
‘‘(B) is derived from qualified feedstock, 
and 
‘‘(C) is certified by the Environmental Pro-
tection Agency to— 
‘‘(i) either— 
‘‘(I) comply with such standards 
of the International Civil Aviation Or-
ganization for sustainable aviation 
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fuels as have been adopted by the 
United States, or 
‘‘(II) meet the definition of ad-
vanced 
biofuel 
under 
section 
211(o)(1)(B) of the Clean Air Act (42 
U.S.C. 7545(o)(1)(B)), and 
‘‘(ii) achieve at least a 50-percent re-
duction in lifecycle greenhouse gas emis-
sions in comparison with conventional jet 
fuel. 
‘‘(d) QUALIFIED MIXTURE.—For purposes of this 
section, the term ‘qualified mixture’ means a mixture of 
neat sustainable aviation fuel blending component and 
kerosene, which— 
‘‘(1) is used by the taxpayer as aircraft fuel in 
a trade or business, or 
‘‘(2) is sold by the taxpayer to any person for 
use as aircraft fuel. 
‘‘(e) DEFINITIONS.—For purposes of this section, the 
terms ‘qualified feedstock’, ‘lifecycle greenhouse gas emis-
sions’, and ‘induced land-use change emissions’ have the 
meanings given such terms in section 3 of the Sustainable 
Aviation Fuel Act. 
‘‘(f) SALE OR USE MUST BE IN TRADE OR BUSI-
NESS, ETC.—Neat sustainable aviation fuel blending com-
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ponent used in the production of a qualified mixture shall 
be taken into account— 
‘‘(1) only if the sale or use described in sub-
section (d) is in a trade or business of the taxpayer 
or other person, and 
‘‘(2) for the taxable year in which such sale or 
use occurs. 
‘‘(g) APPLICATION OF SECTION.—This section shall 
only apply to fuel produced before January 1, 2032.’’. 
(b) CREDIT MADE PART OF GENERAL BUSINESS 
CREDIT.—Section 38(b) (relating to current year business 
credit) is amended by striking ‘‘plus’’ at the end of para-
graph (32), by striking the period at the end of paragraph 
(33) and inserting ‘‘, plus’’, and by inserting after para-
graph (33) the following new paragraph: 
‘‘(34) the sustainable aviation fuel credit deter-
mined under section 40B.’’. 
(c) CONFORMING AMENDMENT.—Section 40A(f) of 
such Code is amended by striking paragraph (4). 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to fuel produced after December 
31, 2021. 
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SEC. 10. EPA CERTIFICATION OF NEAT SUSTAINABLE AVIA-
TION FUEL BLENDING COMPONENT. 
(a) IN GENERAL.—Not later than 180 days after the 
date of enactment of this Act, the Administrator of the 
Environmental Protection Agency shall promulgate regu-
lations, for purposes of section 40B of the Internal Rev-
enue Code of 1986, to certify— 
(1) whether a liquid fuel produced by a fuel 
producer qualifies as a neat sustainable aviation fuel 
blending component under subsection (c)(2)(C) of 
such section; and 
(2) the percent reduction of greenhouse gas 
emissions from a gallon of neat sustainable aviation 
fuel blending component produced by a fuel producer 
in comparison to the greenhouse gas emissions from 
a gallon of conventional jet fuel. 
(b) CONSIDERATIONS AND INCLUSIONS.—In promul-
gating regulations under subsection (a), the Administrator 
of the Environmental Protection Agency shall— 
(1) establish procedures for fuel producers to 
apply to, and receive from, the Environmental Pro-
tection Agency— 
(A) a certification, with respect to liquid 
fuel produced by such fuel producer, that such 
fuel qualifies as a neat sustainable aviation fuel 
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blending component under section 40B(c)(2)(C) 
of the Internal Revenue Code of 1986; and 
(B) if the fuel described in (A) so qualifies, 
a certification of the percent reduction of green-
house gas emissions from a gallon of such fuel 
in comparison to the greenhouse gas emissions 
from a gallon of conventional jet fuel; 
(2) determine methods for calculating green-
house gas emissions from a gallon of conventional 
jet fuel, and for reviewing and updating such cal-
culations every three years; 
(3) for purposes of calculating the greenhouse 
gas emissions from a liquid fuel that does or may 
qualify as a neat sustainable aviation fuel blending 
component, determine whether to use— 
(A) 
the 
Sustainability 
Certification 
Schemes approved by the International Civil 
Aviation Organization with agreement by the 
United States; or 
(B) other methods that take into account 
lifecycle greenhouse gas emissions from the ap-
plicable fuel pathway; 
(4) require different certifications for each fuel 
pathway used by a fuel producer; 
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(5) determine how long a certification under 
subsection (a)(1) or (a)(2) will be in effect for a fuel 
producer; and 
(6) include procedures for— 
(A) notifying a fuel producer and the In-
ternal Revenue Service that a certification 
under subsection (a) will expire, at least 180 
days before such expiration; 
(B) expedited review and recertification 
under subsection (a), during the 180-day period 
described in subparagraph (A), of the green-
house gas emissions from a neat sustainable 
aviation fuel blending component produced by a 
fuel producer; and 
(C) submission of a certification under 
subsection (a) to the Internal Revenue Service. 
(c) DEFINITIONS.—For purposes of this section— 
(1) FUEL PATHWAY.—The term ‘‘fuel pathway’’ 
means the production process through which feed-
stock is converted into neat sustainable aviation fuel 
blending component, and includes the type of feed-
stock, the region in which such feedstock is located, 
the harvesting and collection method of such feed-
stock, the transportation of such feedstock to a fuel 
producing facility, and the method by which such 
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feedstock is converted into neat sustainable aviation 
fuel blending component. 
(2) FUEL
PRODUCER.—The term ‘‘fuel pro-
ducer’’ means a person or entity engaged in the pro-
duction of neat sustainable aviation fuel blending 
component. 
SEC. 11. SUSTAINABLE AVIATION FUEL PRODUCTION PROP-
ERTY ADDED TO ENERGY CREDIT. 
(a) IN GENERAL.—Section 48 of the Internal Rev-
enue Code of 1986 is amended— 
(1) in subsection (a)— 
(A) in paragraph (2)(A)(i)— 
(i) in subclause (III), by striking 
‘‘and’’, and 
(ii) by adding at the end the following 
new subclause: 
‘‘(V) sustainable aviation fuel 
production property, and’’, 
(B) in paragraph (3)(A), by striking ‘‘or’’ 
at the end of clause (vi), inserting ‘‘or’’ at the 
end of clause (vii), and by adding at the end 
the following new clause: 
‘‘(viii) sustainable aviation fuel pro-
duction property,’’, and 
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(C) by adding at the end the following new 
paragraph: 
‘‘(8) PHASEOUT
FOR
SUSTAINABLE
AVIATION 
FUEL PRODUCTION PROPERTY.—In the case of any 
energy property described in paragraph (3)(A)(viii) 
the construction of which begins before January 1, 
2035, the energy percentage determined under para-
graph (2) shall be equal to— 
‘‘(A) in the case of any property the con-
struction of which begins after December 31, 
2026, and before January 1, 2028, 24 percent, 
‘‘(B) in the case of any property the con-
struction of which begins after December 31, 
2027, and before January 1, 2029, 18 percent, 
and 
‘‘(C) in the case of any property the con-
struction of which begins after December 31, 
2028, and before January 1, 2035, 12 per-
cent.’’; and 
(2) in subsection (c), by adding at the end the 
following new paragraph: 
‘‘(5) SUSTAINABLE
AVIATION
FUEL
PRODUC-
TION PROPERTY.— 
‘‘(A) IN GENERAL.—The term ‘sustainable 
aviation fuel production property’ means— 
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‘‘(i) property which produces sustain-
able aviation fuel (as defined in section 
40B(b)) from qualified feedstock (as de-
fined in section 40B(d)), or 
‘‘(ii) property directly related to ena-
bling the production or distribution of sus-
tainable aviation fuel. 
‘‘(B) RECAPTURE OF CREDIT.—The Sec-
retary shall, by regulations, provide for recap-
turing the benefit of any credit allowable under 
subsection (a)(3)(viii) with respect to any sus-
tainable aviation fuel production property if the 
sustainable aviation fuel production of such 
property comprises less than 80 percent of the 
total fuel production of such property in any of 
the 5 taxable years immediately following the 
taxable year in which such property was placed 
in service.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to fuel produced after December 
31, 2021. 
Æ 
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