SECTION 7. DRAFTING
Internal Revenue Bulletin 2024-26 · 2026-10-03 edition · updated 2026-10-04 · United States
INFORMATION
The principal authors of this notice are Camille Edwards Bennehoff and Jennifer Golden of the Office of Associate Chief Counsel (Passthroughs & Special Industries). For questions regarding this notice, contact Ms. Edwards Bennehoff or Ms. Golden at (202) 317-6855 (not a toll-free number).
6 Sections 40B(d) and 45Z(a)(3)(B) define SAF in nearly identical terms. However, the formulas used to qualify for and calculate the respective credits according to emissions are different. See Notice 2023-6, 2023-2 I.R.B. 328, Notice 2024-6, 2024-2 I.R.B. 348, and Notice 2024-37, 2024-21 I.R.B. 1191, for additional information regarding § 40B.
7 Section 404 of the American Taxpayer Relief Act of 2012, Public Law 112-240, 126 Stat. 2313 (January 2, 2013), modified and extended what was previously known as the cellulosic biofuel producer credit of § 40(b)(6), replacing the term “cellulosic biofuel” with “second generation biofuel” and expanding the list of qualifying feedstocks to include algae.
Bulletin No. 2024–26 1785 June 24, 2024
Appendix A – Table of Feedstocks Used to Make Fuels that May Be Eligible for the § 45Z Credit*
- Appendix A identifies primary feedstocks used to make transportation fuels that may be eligible for the § 45Z credit for purposes of applications for registration. Producers should list the feedstock(s) that are sourced from one or more separate entities or facilities as the main input(s) to their fuel production process. For example, an alcohol-to-jet (ATJ) producer that imports ethanol from one or more separate ethanol production facilities may list ethanol as the feedstock, whereas an integrated ATJ facility with on-site ethanol production should list the feedstock used to produce the ethanol. Renewable natural gas (RNG) producers with on-site anaerobic digestion should list the inputs to the digester (for example, manure or food waste) as feedstocks, whereas RNG producers that import biogas from a separate site should list biogas as the feedstock.
** For purposes of Appendix A, “dedicated” means woody biomass grown for the purpose of being harvested for biofuel production.
| Feedstock Type | Feedstock | Additional Information |
|---|---|---|
| Agricultural Residue | Barley straw | |
| Agricultural Residue | Corn stover | |
| Agricultural Residue | Cotton feld residues | |
| Agricultural Residue | Oats straw | |
| Agricultural Residue | Orchard or vineyard residues | |
| Agricultural Residue | Rice straw | |
| Agricultural Residue | Sorghum stubble | |
| Agricultural Residue | Sugarcane bagasse | |
| Agricultural Residue | Wheat straw | |
| Agricultural Residue | Other agricultural residues | |
| Algae | Algal oil | |
| Biogas | Dairy/ |
|
| Biogas | High solid anaerobic digester gas | |
| Biogas | Landfll gas | |
| Biogas | Waste gases | |
| Biogas | Other biomethane | |
| Biomass Energy Crop | Biomass sorghum | |
| Biomass Energy Crop | Energy cane | |
| Biomass Energy Crop | Miscanthus | |
| Biomass Energy Crop | Switchgrass | |
| Biomass Energy Crop | Other biomass energy crop | |
| CO2 | CO2 co-produced with hydrogen | Includes CO2 co-produced with hydrogen produced for use in the Haber-Bosch process |
| CO2 | CO2 from biogas upgrading | Includes CO2 from landfll gas upgrading |
| CO2 | CO2 from calcination of inorganic materials in cement production |
|
| CO2 | CO2 from direct air capture | |
| CO2 | CO2 from ethanol fermentation | |
| CO2 | CO2 from ore oxidation in iron and steel production |
|
| CO2 | Post-combustion captured biogenic CO2 |
Includes only CO2 captured from combustion of bio- based materials (for example, biomass, biogas) |
| CO2 | Post-combustion captured fossil CO2 | Includes only CO2 captured from combustion of fossil fuels |
| CO2 | Other CO2 source | |
| Ethanol | Corn grain | Applicable for SAF only |
| Ethanol | Sugarcane | Applicable for SAF only |
| Ethanol | Other sugar crop | Applicable for SAF only |
| Ethanol | Other grain crop | Applicable for SAF only |
June 24, 2024 1786 Bulletin No. 2024–26
| Feedstock Type | Feedstock | Additional Information |
|---|---|---|
| Ethanol | Other feedstocks | Applicable for SAF only |
| Fats, Oils, and Greases | Other fats, oils, or greases | |
| Fats, Oils, and Greases | Tall oil | |
| Fats, Oils, and Greases | Used cooking oil | |
| Fats, Oils, and Greases | Tallow | |
| Industrial Byproduct | Black liquor | |
| Industrial Byproduct | Corn kernel fber | |
| Industrial Byproduct | Distillers corn oil | |
| Industrial Byproduct | Distillers sorghum oil | |
| Industrial Byproduct | Milling residues | |
| Industrial Byproduct | Nut hulls or shells | |
| Industrial Byproduct | Other byproduct | |
| Industrial Byproduct | Other food or beverage manufactur- ing wastes |
This includes brewery, winery, and distillery waste, including spent grain |
| Isobutanol | Corn grain | Applicable for SAF only |
| Isobutanol | Sugarcane | Applicable for SAF only |
| Isobutanol | Other feedstocks | Applicable for SAF only |
| Isobutanol | Other grain crop | Applicable for SAF only |
| Isobutanol | Other sugar crop | Applicable for SAF only |
| Manure | Manure, beef | |
| Manure | Manure, dairy | |
| Manure | Manure, swine | |
| Mixed Organic Waste | Construction, demolition, or other urban wood waste |
|
| Mixed Organic Waste | Mixed non-residential food waste | |
| Mixed Organic Waste | Mixed residential food waste | |
| Mixed Organic Waste | Municipal solid waste | |
| Mixed Organic Waste | Paper and paperboard | |
| Mixed Organic Waste | Wastewater treatment sludge | |
| Mixed Organic Waste | Yard waste | |
| Mixed Organic Waste | Other mixed organic waste | |
| Natural Gas | Natural gas | |
| Natural Gas | Renewable natural gas | |
| Oilseed | Jatropha oil | |
| Oilseed | Palm oil | Potentially eligible feedstock for non-SAF trans- portation fuel. SAF derived from palm fatty acid distillates is explicitly prohibited |
| Oilseed | Rapeseed/ |
|
| Oilseed | Soybean oil | |
| Oilseed | Other oilseed | |
| Other Alcohols | Corn grain | Applicable for SAF only |
| Other Alcohols | Sugarcane | Applicable for SAF only |
| Other Alcohols | Other feedstocks | Applicable for SAF only |
| Other Alcohols | Other grain crop | Applicable for SAF only |
| Other Alcohols | Other sugar crop | Applicable for SAF only |
Bulletin No. 2024–26 1787 June 24, 2024
| Feedstock Type | Feedstock | Additional Information |
|---|---|---|
| Second or Intermediate Crop | Camelina | |
| Second or Intermediate Crop | Carinata | |
| Second or Intermediate Crop | Corn safrina | |
| Second or Intermediate Crop | Other second or intermediate crop | |
| Second or Intermediate Crop | Pennycress | |
| Starch Crop | Barley | |
| Starch Crop | Corn grain | |
| Starch Crop | Grain sorghum | |
| Starch Crop | Wheat | |
| Starch Crop | Other starch crop | |
| Sugar Crop | Sugarbeet | |
| Sugar Crop | Sugarcane | |
| Sugar Crop | Sweet sorghum | |
| Sugar Crop | Other sugar crop | |
| Woody Biomass | Forest slash | |
| Woody Biomass | Pre-commercial thinnings | |
| Woody Biomass | Dedicated short-rotation poplar** | |
| Woody Biomass | Dedicated short-rotation willow** | |
| Woody Biomass | Dedicated pine** | |
| Woody Biomass | Dedicated short-rotation eucalyp- tus** |
|
| Woody Biomass | Other dedicated woody biomass** | |
| Woody Biomass | Other woody biomass residues | |
| Other | A feedstock used to produce a fuel eligible for the § 45Z credit which is not listed in this table |
On your Form 637, state “Other” and provide a description of the feedstock |
June 24, 2024 1788 Bulletin No. 2024–26
tion to add polyoxymethylene to the List in accordance with the requirements of section 4672(a)(2) and (4), and pursuant to the procedures set forth in Rev. Proc. 2022-26, as modified by Rev. Proc. 202320. The tax rate for polyoxymethylene, as prescribed by the Secretary, is provided in paragraph (a)(6) of the “Modification to the List of Taxable Substances” section of this notice.
Classification numbers for polyoxymethylene are provided in paragraph (b) of the “Modification to the List of Taxable Substances” section of this notice. The classification numbers provided with respect to polyoxymethylene are not part of the determination of whether polyoxymethylene is added to the List and do not impact whether polyoxymethylene is a taxable substance. The classification numbers are provided solely as a matter of convenience, and taxpayers may not rely on them. The classification numbers may change over time. The Department of the Treasury (Treasury Department) and the IRS do not anticipate updating this document to reflect any such changes.
Modification to the List of Taxable Substances:
(a) Determination . Polyoxymethylene is added to the list of taxable substances under section 4672(a). Other pertinent information is as follows:
(1) Predominant method of production : There is a reaction of aqueous formaldehyde with an alcohol to create a hemiformal. The hemiformal/water mixture is dehydrated (either by extraction or vacuum distillation). The hemiformal is heated to release the formaldehyde. The formaldehyde is then polymerized by anionic catalysis, and the resulting polymer stabilized by reaction with acetic anhydride.
(2) Stoichiometric material consump- tion equation :
n CH4 + n ½ O2 → (CH2O)n + n H2
(3) Reasons for the determination : The polyoxymethylene petition submitted by Petitioner was filed on December 20, 2022. The notice of filing summarizing
Superfund Tax on Chemical Substances; Modification to List of Taxable Substances; Notice of Determination for Polyoxymethylene
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