SAF Act

Paragraph (3) of section 45Z(a) of the Internal Revenue Code of 1986, as amended by section 70521(g)(2) of Public Law 119–21, is amended to read as follows:

In the case of a transportation fuel which is sustainable aviation fuel, paragraph (2) shall be applied—

(i) in the case of fuel produced at a qualified facility described in paragraph (2)(A), by substituting 35 cents for 20 cents, and

(ii) in the case of fuel produced at a qualified facility described in paragraph (2)(B), by substituting $1.75 for $1.00.

For purposes of this section, 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—

(i) meets the requirements of—

(I) ASTM International Standard D7566, or

(II) the Fischer Tropsch provisions of ASTM International Standard D1655, Annex A1, and

(ii) is not derived from palm fatty acid distillates or petroleum.

Section 45Z(c)(1) of such Code, as amended by section 70521(g)(2) of Public Law 119–21, is amended by striking and the $1.00 amount in subsection (a)(2)(B) and inserting, the $1.00 amount in subsection (a)(2)(B), the 35 cent amount in subsection (a)(3)(A)(i), and the $1.75 amount in subsection (a)(3)(A)(ii).

Section 45Z(g) of such Code, as amended by section 70521(d) of Public Law 119–21, is amended by striking December 31, 2029 and inserting December 31, 2033.

The amendments made by this section shall apply to fuel produced after December 31, 2025.