Clean fuel production credit

For purposes of section 38, the clean fuel production credit for any taxable year is an amount equal to the product of— the applicable amount per gallon (or gallon equivalent) with respect to any transportation fuel which is— In the case of any transportation fuel produced at a qualified facility which does not satisfy the requirements described in subparagraph (B), the applicable amount shall be 20 cents. In the case of any transportation fuel produced at a qualified facility which satisfies the requirements under paragraphs (6) and (7) of subsection (f), the applicable amount shall be $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— meets the requirements of— For purposes of paragraph (1), the transportation fuel is sold in a manner described in this paragraph if such fuel is sold by the taxpayer to an unrelated person— If any amount determined under paragraph (1) is not a multiple of 1 cent, such amount shall be rounded to the nearest cent. The emissions factor of a transportation fuel shall be an amount equal to the quotient of— an amount equal to— Subject to clauses (ii), (iii), (iv), and (v), the Secretary shall annually publish a table which sets forth the emissions rate for similar types and categories of transportation fuels based on the amount of lifecycle greenhouse gas emissions (as described in section 211(o)(1)(H) of the Clean Air Act (42 U.S.C. 7545(o)(1)(H)), as in effect on the date of the enactment of this section) for such fuels, expressed as kilograms of CO2e per mmBTU, which a taxpayer shall use for purposes of this section. In the case of any transportation fuel which is not a sustainable aviation fuel, the lifecycle greenhouse gas emissions of such fuel shall be based on the most recent determinations under the Greenhouse gases, Regulated Emissions, and Energy use in Transportation model developed by Argonne National Laboratory, or a successor model (as determined by the Secretary). In the case of any transportation fuel which is a sustainable aviation fuel, the lifecycle greenhouse gas emissions of such fuel shall be determined in accordance with— Notwithstanding clauses (i), (ii), and (iii), the emissions rate shall be adjusted as necessary to exclude any emissions attributed to indirect land use change. Any such adjustment shall be based on regulations or methodologies determined by the Secretary. With respect to any transportation fuel which is derived from animal manure, the Secretary— The Secretary may round the emissions rates under subparagraph (B) to the nearest multiple of 5 kilograms of CO2e 11 So in original. Probably should be “CO2e”. per mmBTU. In the case of any transportation fuel for which an emissions rate has not been established under subparagraph (B), a taxpayer producing such fuel may file a petition with the Secretary for determination of the emissions rate with respect to such fuel. For purposes of this section, the emissions rate for a transportation fuel may not be less than zero. If any amount determined under paragraph (1)(A) is not a multiple of 0.1, such amount shall be rounded to the nearest multiple of 0.1. In the case of calendar years beginning after 2024, the 20 cent amount in subsection (a)(2)(A) and the $1.00 amount in subsection (a)(2)(B) shall each be adjusted by multiplying such amount by the inflation adjustment factor for the calendar year in which the sale of the transportation fuel occurs. If any amount as increased under the preceding sentence is not a multiple of 1 cent, such amount shall be rounded to the nearest multiple of 1 cent. For purposes of paragraph (1), the inflation adjustment factor shall be the inflation adjustment factor determined and published by the Secretary pursuant to section 45Y(c), determined by substituting “calendar year 2022” for “calendar year 1992” in paragraph (3) thereof. In this section: The term “mmBTU” means 1,000,000 British thermal units. The term “CO2e” means, with respect to any greenhouse gas, the equivalent carbon dioxide (as determined based on relative global warming potential). The term “greenhouse gas” has the same meaning given that term under section 211(o)(1)(G) of the Clean Air Act (42 U.S.C. 7545(o)(1)(G)), as in effect on the date of the enactment of this section. The term “qualified facility”— does not include any facility for which one of the following credits is allowed under section 38 for the taxable year: The term “transportation fuel” means a fuel which— In this paragraph— The term “applicable material” means— The term “biomass” has the same meaning given such term in section 45K(c)(3). The Secretary shall issue such regulations or other guidance as the Secretary determines necessary to carry out the purposes of subparagraph (A)(iv). Not later than January 1, 2025, the Secretary shall issue guidance regarding implementation of this section, including calculation of emissions factors for transportation fuel, the table described in subsection (b)(1)(B)(i), and the determination of clean fuel production credits under this section. No clean fuel production credit shall be determined under subsection (a) with respect to any transportation fuel unless— the taxpayer— in the case of any transportation fuel which is a sustainable aviation fuel, provides— certification (in such form and manner as the Secretary shall prescribe) from an unrelated party demonstrating compliance with— For purposes of this paragraph, the term “United States” includes any possession of the United States. In the case of a facility in which more than 1 person has an ownership interest, except to the extent provided in regulations prescribed by the Secretary, production from the facility shall be allocated among such persons in proportion to their respective ownership interests in the gross sales from such facility. Persons shall be treated as related to each other if such persons would be treated as a single employer under the regulations prescribed under section 52(b). In the case of a corporation which is a member of an affiliated group of corporations filing a consolidated return, such corporation shall be treated as selling fuel to an unrelated person if such fuel is sold to such a person by another member of such group. The Secretary may prescribe additional related person rules similar to the rule described in the preceding sentence for entities which are not described in such sentence, including rules for related persons with respect to which the taxpayer has reason to believe will sell fuel to an unrelated person in a manner described in subsection (a)(4). Under regulations prescribed by the Secretary, rules similar to the rules of subsection (d) of section 52 shall apply. Rules similar to the rules of section 45Y(g)(6) shall apply. Subject to subparagraph (B), rules similar to the rules of section 45(b)(7) shall apply. For purposes of subparagraph (A), in the case of any qualified facility placed in service before January 1, 2025— Rules similar to the rules of section 45(b)(8) shall apply. No credit shall be determined under subsection (a) for any taxable year beginning after the date of enactment of this paragraph if the taxpayer is a specified foreign entity (as defined in section 7701(a)(51)(B)). No credit shall be determined under subsection (a) for any taxable year beginning after the date which is 2 years after the date of enactment of this paragraph if the taxpayer is a foreign-influenced entity (as defined in section 7701(a)(51)(D), without regard to clause (i)(II) thereof). This section shall not apply to transportation fuel sold after December 31, 2029.