Coalition Letter to IRS, Treasury Department Regarding the Methodology Requirements for Lifecycle Greenhouse Gas Emissions Reduction Under Section 40B and 45Z of the Internal Revenue Code

Added on: September 12, 2023


Distributors, retailers, and consumers of advanced renewable fuels urged the Internal Revenue Service (“IRS”) and the Department of Treasury to implement the Inflation Reduction Act of 20222 (“IRA”) 40B and 45Z tax credits in a manner that incentivizes biofuel feedstocks to be directed toward the most environmentally compelling end-use. Specifically, NATSO and seven trade associations urged the IRS to uphold Congressional intent and condition sustainable aviation fuel’s preferential tax treatment to more stringent lifecycle greenhouse gas (“GHG”) emissions modeling requirements.