Sustainability and Environment
New SAF Tax Incentive Guidelines Add Strings to Ethanol Feedstock Use
Under the new GREET model, corn and soy crops will require smart farming practices
Corn field
Under the new sustainable aviation fuel tax credit guidelines, any ethanol-to-jet SAF will require the use of smart corn and/or soy growing practices for its feedstock crops to be eligible for credits. © AdobeStock

The Biden Administration on Tuesday released its guidance on the eligibility of corn- and soy-based ethanol for tax credits in the production of sustainable aviation fuel.

Under U.S. Treasury Department guidelines, SAF that achieves a life cycle carbon emissions reduction of at least 50% compared with conventional jet-A is eligible for a tax credit of $1.25 a gallon with one cent added per percentage point above that, up to a maximum of $1.75 per gallon. The credits are viewed as a strong incentive for SAF producers.

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