SECTION 11. DRAFTING — Internal Revenue Bulletin 2023-2

INFORMATION

The principal author of this notice is Elisabeth Shellan of the Office of Associate Chief Counsel (Passthroughs & Special Industries). For further information regarding this notice, call the energy security guidance contact number at (202) 317-5254 (not a toll-free number).

Bulletin No. 2023–2 335 January 9, 2023

Appendix A – Model Declaration for SAF Qualified Mixture

DECLARATION FOR SAF QUALIFIED MIXTURE

(To support a claim related to sustainable aviation fuel (SAF)

under the Internal Revenue Code)

The undersigned blender of a SAF qualified mixture (“Claimant”) hereby declares the following:

Claimant’s name, address, and employer identification number (EIN)

Claimant declares that the SAF qualified mixture to which this declaration relates:

(A) Is a mixture of SAF synthetic blending component and kerosene;

(1) The SAF synthetic blending component used to create the mixture meets the requirements of an ASTM D7566 Annex (the certificate of analysis reference number demonstrating conformance with such standard is ____________________, dated ____________ and the Certificate for SAF Synthetic Blending Component, for the SAF synthetic blending component used to create the mixture, certificate identification number is ____________________, dated __________);

(2) The kerosene used to create the mixture meets the requirements of ASTM D1655 (the certificate of analysis reference number demonstrating conformance with such standard is ____________________, dated __________);

(3) The SAF qualified mixture meets the requirements of ASTM D7566 (the certificate of analysis reference number demonstrating conformance with such standard is ____________________, dated __________);

(B) The mixture was produced by Claimant in the United States;

(D) Such sale or use was in the ordinary course of the trade or business of the Claimant;

(E) The transfer of such mixture to the fuel tank of such aircraft occurred in the United States.

Claimant is registered under activity letter M or S or both with registration number(s) ____________________. Claimant’s registration has not been suspended or revoked by the Internal Revenue Service.

Under penalties of perjury, I, ___________________________________________ declare that I have examined this declaration, and to the best of my knowledge and belief, it is true, correct, and complete.

Printed or typed name of person signing this declaration

Title of person signing

Signature and date signed

January 9, 2023 336 Bulletin No. 2023–2

Appendix B – Model Certificate for SAF Synthetic Blending Component CERTIFICATE FOR SAF SYNTHETIC BLENDING COMPONENT

Certificate Identification Number: ____________________

(To support a claim related to sustainable aviation fuel (SAF)

under the Internal Revenue Code)

The undersigned producer or importer of a SAF synthetic blending component (“Producer”) hereby certifies the following under penalties of perjury:

Producer’s name, address, and employer identification number (EIN)

Name, address, and EIN of person buying the SAF synthetic blending component from Producer.

Name and address of the unrelated party certifying compliance with the general requirements, supply chain traceability requirements, and information transmission requirements established under the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) or similar requirements for methodologies established under section 211(o)(1)(H) of the Clean Air Act (42 U.S.C. 7545(o)(1)(H)).

Date and location of sale to buyer

This certificate applies to __________ gallons of a SAF synthetic blending component.
Producer certifies that the SAF synthetic blending component to which this certificate relates:

(A) Meets the requirements of an ASTM D7566 Annex (the certificate of analysis reference number demonstrating

conformance with such standard is ____________________, dated __________ );

(B) Is not derived from co-processing an applicable material (monoglycerides, diglycerides, triglycerides, free fatty acids,

or fatty acid esters) or materials derived from an applicable material with a feedstock that is not biomass (as defined in section 45K(c)(3));

(D) Has been certified in accordance with section 40B(e) as having a lifecycle greenhouse gas emissions reduction percentage

of at least 50 percent.

Bulletin No. 2023–2 337 January 9, 2023

The lifecycle greenhouse gas emissions reduction percentage of the SAF synthetic blending component to which this certificate relates is __________. (This percent must be rounded down to the nearest whole percent.)

(Check one)

______ The lifecycle greenhouse gas emissions reduction percentage is calculated from the “Default Life Cycle Emissions Values for CORSIA Eligible Fuels” in the most recently published version by the International Civil Aviation Organization (ICAO).

______ The lifecycle greenhouse gas emissions reduction percentage is calculated from the “CORSIA Methodology for Calculating Actual Life Cycle Emission Values” in the most recently published version by the ICAO.

______ The lifecycle greenhouse gas emissions reduction percentage is calculated according to a methodology that satisfies the criteria of section 211(o)(1)(H) of the Clean Air Act (42 U.S.C. 7545(o)(1)(H)). Describe method: _________________

The applicable supplementary amount with respect to the SAF synthetic blending component to which this certificate relates is __________. In no event can the applicable supplementary amount exceed $0.50.
This certificate applies to the following sale:

______ Invoice or delivery ticket number

______ Total number of gallons of the SAF synthetic blending component sold under that invoice or delivery ticket number (including SAF synthetic blending component not covered by this certificate)

______ Total number of certificates issued for that invoice or delivery ticket number

Name, address, and EIN of reseller to whom certificate is issued (only in the case of certificates reissued to a reseller after the return of the original certificate)

January 9, 2023 338 Bulletin No. 2023–2

_________ Original Certificate Identification Number (only in the case of certificates reissued to a reseller after return of the original certificate)
Producer is registered as a sustainable aviation fuel (activity letter SA) producer or importer with registration number __________. Producer’s registration has not been suspended or revoked by the Internal Revenue Service.

Producer understands that the fraudulent use of this certificate may subject Producer and all parties making any fraudulent use of this certificate to a fine or imprisonment, or both, together with the costs of prosecution.

Printed or typed name of person signing this certificate

Title of person signing

Signature and date signed

Note: In the case of a claimant that is also the producer or importer of the SAF synthetic blending component, the information required on lines 2, 4, and 10 of the model certificate is not applicable and those lines do not need to be completed.

Bulletin No. 2023–2 339 January 9, 2023

Appendix C – Model Statement of SAF Synthetic Blending Component Reseller STATEMENT OF SAF SYNTHETIC BLENDING COMPONENT RESELLER

(To support a claim related to sustainable aviation fuel (SAF)

under the Internal Revenue Code)

The undersigned SAF synthetic blending component reseller (“Reseller”) hereby certifies the following under penalties of perjury:

Reseller’s name, address, and employer identification number (EIN)

Name, address, and EIN of Reseller’s buyer 3. ___________________________________________________________________________________________________

Date and location of sale to buyer

__________________________________Volume of the SAF synthetic blending component sold
__________________________________Certificate Identification Number on the Certificate for SAF Synthetic Blending Component

Reseller has bought the SAF synthetic blending component described in the accompanying Certificate for SAF Synthetic Blending Component and reseller has no reason to believe that any information in the certificate is false.

Reseller has not been notified by the Internal Revenue Service that its right to provide a certificate and a statement has been withdrawn.

Reseller understands that the fraudulent use of this statement may subject Reseller and all parties making any fraudulent use of this statement to a fine or imprisonment, or both, together with the costs of prosecution.

Printed or typed name of person signing this certificate

Title of person signing

Signature and date signed

January 9, 2023 340 Bulletin No. 2023–2

ception applies, or the transferor provides a certification claiming another exception to withholding under §1.1446(f)-4(b)), a broker that is unable to determine the classification of an entity may be required to withhold on each sale of an interest in such entity. The view of these stakeholders was that it is impractical to identify a complete list of entities organized outside of the United States that are classified as partnerships for U.S. tax purposes and that are traded on a foreign established securities market or foreign secondary market. These stakeholders requested that a broker be able to presume that an entity organized outside of the United States is not a PTP unless it has actual knowledge to the contrary, and that a PTP organized outside of the United States is presumed to not have effectively connected income unless it represents otherwise on a qualified notice.

The Treasury Department and the IRS have determined that the burden on brokers to determine whether a foreign entity that trades on a foreign market is a PTP for U.S. tax purposes would likely be disproportionate to the amount of gain subject to section 864(c)(8) on transfers of interests in such entities. The Treasury Department and the IRS intend to issue proposed regulations that would amend the final regulations to provide withholding relief to brokers on the sale of an interest in an entity that is organized outside of the United States and that trades solely on a foreign established securities market or foreign secondary market (foreign-traded entity). This proposed amendment would allow a broker that effects a sale of an interest in a foreign-traded entity to presume that the entity is not a PTP for U.S. tax purposes unless the broker has actual knowledge otherwise.

However, the Treasury Department and the IRS have determined that it is inappropriate to allow a broker that knows that a foreign-traded entity is a PTP for U.S. tax purposes to presume that the PTP does not have effectively connected income, and therefore do not intend to include such a presumption in the proposed regulations. Thus, in such a case, a broker would be required to withhold under section 1446(f) on the sale of an interest in the PTP unless the PTP has indicated on a qualified notice that the ten-percent exception applies

Additional Guidance Related to Transfers of Publicly Traded Partnership Interests under Section 1446(f)