$1.25 / gallon
Irrespective of fuel type.
Additional $0.01 / gallon
for each percent of GHG lifecycle reduction beyond 50%.
$1.75 / gallon
Maximum credit at 100% reduction.
| Line | Description | Key Instructions for SAF Claims |
|---|---|---|
| 1 | Fuel mixture credits (general) | Enter non-SAF mixtures if applicable; SAF goes here if blended. |
| 4b | Sustainable aviation fuel credit | Core line: Report qualified SAF gallons * credit rate (base + additional). Attach certification. |
| 4c | Nontaxable aviation fuel use | Cross-reference if claiming both excise and credit. |
| 5 | Total credits | Auto-sum; flows to Form 720 Part I, line 4. |
| 7 | Amount to claim | Net after any overclaims; refundable quarterly. |
Source: IRS Instructions for Form 720 (2026 ed.). Always verify the latest at IRS.gov.
| IRS Reference | Details | Relevance to Claims |
|---|---|---|
| IRC §40B | Sustainable Aviation Fuel Credit statute | Defines base/additional rates and eligibility. |
| Notice 2023-6 | Initial SAF guidance | 50% threshold, calculation methods. |
| Notice 2024-47 | Updated GREET pathways | Approved emissions models. |
| Form 637 Code K-1 | Producer registration | Producer registrationRequired before claims. |
| Rev. Proc. 2024-20 | Recordkeeping rules | 3-year retention mandate. |
The SAF credit is reported by claiming it in Schedule C of Form 720, which ensures that fuel amounts and computed credits are properly reported.
Declare the total amount of qualified SAF gallons.
Calculate credit using the emission reduction percentage verified.
Confirm that no claim for the same batch of fuel has been made twice.
| Component | Formula/Value | Example (70% Reduction) |
|---|---|---|
| Base Credit | $1.25/\$1.25 /$1.25/gallon | $1.25\$1.25 |
| Additional Credit | $0.01*\$0.01 \times$0.01* (Reduction % - 50) | $0.20\$0.20$0.20 (20 pts) |
| Total per Gallon | Up to $1.75\$1.75$1.75 | $1.45\$1.45$1.45 |
| Minimum Requirement | 50% lifecycle GHG cut | N/A |
Compliance with IRS Notice 2024-47 and ASTM specifications.
Collect GREET studies, certificates, and supplier statements.
Enter data into IRS formulas.
Work with an IRS-approved provider to file, track, and get confirmation.
Processing in a few days, compared to weeks for paper filing.
Automatic calculation functions ensure that there are no errors in computation.
Instant validation ensures compliance even before filing.
Encryption techniques ensure that data remains safe for auditing.
Fuels with a reduction level of less than 50%.
Incomplete certification or loss of chain of custody.
Overclaim of additional credits.
Multiple claims by different parties.
Lack of documentation (10-15% of claimants audited by IRS).
Apply for SAF credit on Schedule C of IRS Form 720, use reliable calculating tools, and file your claim electronically through Efile720.
File Form 720 NowIt is a federal tax program that pays for each gallon of environmentally friendly aviation fuel used.
The fuel should have at least a 50% reduction in greenhouse gas emissions over its lifecycle.
The credit is calculated by adding $1.25 to $0.01 for every point of credit above 50%, up to a maximum of $1.75.
The credit is claimed on Schedule C attached to IRS Form 720.
Yes. Documentation of certification and lifecycle emissions is required for IRS audit purposes.